Answer:
$65.85
Explanation:
Calculation for What should the offer price be
Using this formula
Offer price=(Preferred stock× Liquidating value)/Return
Let plug in the formula
Offer price = (0.054 × $100) / 0.082
Offer price=5.4/0.082
Offer price = $65.85
Therefore the offer price should be $65.85
Answer
Financial advantage from further processing $31
Explanation:
<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>
<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further . </em>
<em> $</em>
Sales revenue after the split off point( 64+64) 128
Sales revenue at the split-off point (16+47) <u> 63</u>
Additional sales revenue 65
Further processing cost ( 15+19) <u>(34
)</u>
<em>Net income after further processing 31</em>
Financial advantage from further processing $31
Answer:
$3,000
Explanation:
Calculation to determine How much bad debts expense will Beautiful Lawns report in 2016
Using this formula
Bad debts expense=Estimated doubtful accounts -Allowance for Doubtful Accounts credit balance
Let plug in the formula
Bad debts expense=$3,600-$600
Bad debts expense=$3,000
Therefore The amount of bad debts expense that Beautiful Lawns will report in 2016 is $3,000
Answer:
$55,902 is the amount I can expect to earn in the fourth year
Explanation:
Remember Salary increases by 10% each year
Salary in Year 1 : 42,000
Salary in Year 2: 42,000 x 1.1 = $46,200
Salary in Year 3: 46,200 x 1.1 = $50,820
Salary in Year 4: 50,820 x 1.1 = $55,902
Answer:
You agree that test marketing could be helpful, but you point out that it may also reveal your ideas to your competitors.
Explanation:
In the give scenario the existing famous cheesy butter biscuits sales are going down. In an effort to increase the revenue of the business the head of product development has a theory that people want lighter options today, and she has recommended test marketing a lower-fat version of the biscuits at select locations in eight major cities across the United States.
This is an innovative solution to the problem and the head of product development should be encouraged to drive the test marketing.
However marketing a lower-fat version of the biscuits at select locations in eight major cities will expose the strategy to competitors. It will be better to conduct the test in a more controlled environment away from competitors.