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4 years ago

Which of the following statements is NOT true regarding location decisions?

Business

1 answer:

mariarad [96]4 years ago

3 0

Answer:

B. Once management is committed to a specific location, many costs become relatively easy to reduce.

Explanation:

As a location decision is essential and a specific decision taken by the company it has to be focused on its decision and does not need to draw any conclusion as a location decision made in the past cannot be easily overcome or reduced depending on the choices of the firm or the location availability of the resources.

The location adds a cost to the company and is evaluated on the basis of the internal policy and thus is costly to undo. A location often serves as a point of maximum profit or the operations performed by a firm like the effects form the land cost, labor costs, energy costs, and transport costs, etc.

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The following information is for the Jeffries Corporation: Product A: Revenue $18.00 Variable Cost $14.00 Product B: Revenu

shusha [124]

Jeffries Corporation's Operating Income from the two products is A. $35,000.

The operating income is the difference between the revenue and operating costs (variable and fixed costs).

Data and Calculations:

Product A Product B Total

Revenue $18.00 $21.00

Variable cost 14.00 13.00

Contribution $4.00 $8.00

Fixed costs $143,000

Total sales units 35,600

Sales mix 3 1 4

Sales units 26,700 8,900 35,600

Total contribution$106,800 $71,200 $178,000

Total fixed costs 143,000

Operating income $35,000

Thus, the operating income is $35,000.

5 0

2 years ago

The Terme Corporation is contemplating the purchase of new equipment, which may potentially increase revenues by 25%. Currently,

vekshin1

Answer:

The increase in gross profit is $12,374.93

Explanation:

The increase in sales due to purchasing this new equipment is 25% of current sales figure of $750,000

increase in sales=$750,000*25%=$187,500

variable cost on the increase in sales is 55%=$187500 *55%=$103,125

The annual depreciation charge on the new equipment=cost of the new equipment-salvage value/useful life

cost of the new equipment is $357,500.37

salvage value is $0

useful life of the new equipment is 5 years

annual depreciation charge=($357,500.37-$0)/5=$ 71,500.07

Increase/(decrease) in annual gross profit=$187,000-$103,125-$ 71,500.07 =$12,374.93

4 0

3 years ago

January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 30,000 of its common shares at $7 each. T

Anton [14]

Answer:

169,000

Explanation:

Calculation to determine what The number of shares to be used in computing diluted earnings per share for the quarter is:

First step is to calculate the amount assumed to be exercised

Exercised amount= 30,000*$7 / $15avg

Exercised amount= 14,000

Second step is to calculate the Net

Net=30,000-14,000

Net= 16,000

Now let calculate The number of shares to be used in computing diluted earnings per share

Using this formula

Number of shares=Outstanding+Net

Let plug in the formula

Number of shares=153,000 +16,000

Number of shares= 169,000

*diluted eps=$28,000 /169,000

Therefore The number of shares to be used in computing diluted earnings per share for the quarter is: 169,000

8 0

3 years ago

The following information relates to the assets of Westfield Semiconductors as of December 31, 2019. Westfield uses the straight

Salsk061 [2.6K]

Answer:

See the explanation below.

Explanation:

Given the following:

Asset Acquisition-Cost Expected-Life Residual-Value Time-Used

Land $104,300 Infinite $100,000 10 years

Building 430,000 25 years 30,000 10 years

Machine 285,000 5 years 10,000 2 years

Patent 80,000 10 years 0 3 years

Truck 21,000 100,000 miles 3,000 44,000 miles

Therefore, we have:

Building annual depreciation = ($430,000 - $30,000) / 25 = $16,000

Building net book value (NBV) = $430,000 - (16,000 * 10) = $270,000

Machine annual depreciation = ($285,000 - 10,000) / 10 = $27,500

Machine NBV = $285,000 - ($27,500 * 2) = $230,000

Patent annual amortization = $80,000 / 10 = $8,000

Patent net written down value = $80,000 - ($8,000 * 3) = $56,000

Truck accumulated depreciation = ($21,000 - 3,000) * (44,000 / 100,000) = $7,920

Truck NBV = $21,000 - $7,920 = 13,080

Westfield Semiconductors Balance Sheet (Partial) as of December 31, 2019.

Details $

Property, plant, and equipment:

Land (Cost) 104,300

Building (NBV) 270,000

Machine (NBV) 230,000

Truck (NBV) 13,080

Total PPM 617,380

Intangible assets:

Patent (NRV) 56,000

Total tangible and intangible assets  673,380

4 0

3 years ago

Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail out

iVinArrow [24]

Answer:

a) geographic diversification strategy.

Explanation:

In this scenario, Symphon Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail outlets in major cities of the emerging nations. The type of diversification strategies the firm is pursuing is a geographic diversification strategy.

Geographical diversification strategy can be defined as the process of diversifying your investments across various geographical regions (market) so as to improve profits or returns on investment and primarily to mitigate the overall business risk.

Hence, using the geographic diversification strategy Symphon Times Inc., is spreading its risk across various geographical regions or emerging nations by allocation of its resources in order to prevent them from being vulnerable to external conditions and to improve their performance and competitiveness. Thus, a geographic diversification strategy is simply a business management strategy that entails "not putting all your eggs in a basket" rather you should have them spread across in order to prevent or mitigate the overall risks.

Additionally, in order to preserve wealth and to reduce portfolio risks it is advisable that business owners such as Symphon Times Inc. engage in geographic diversification strategy.

4 0

3 years ago

Which of the following statements is NOT true regarding location​ decisions?

Which of the following statements is NOT true regarding location decisions?