1. Why didn’t a planet form here?

A twenty-acre park was created to give residents a place to hike, bike, and enjoy other recreational activities. Kathy was hired

TiliK225 [7]

Answer:

b

Explanation:

8 0

3 years ago

Read 2 more answers

Which of the following is not a typical adjustment made to the income statement for projection purposes?

ankoles [38]

Answer:

The correct answer is b. Adjusting revenues to only include organic revenue growth.

Explanation:

One of the quantitative planning techniques is the projection of financial statements or also called pro forma statements.

The applications that can be had among others are the following:

Know how the year will end for tax purposes in terms of income and deductions in order to make decisions before the end of the year.

Another application will be to know the external financing needs for the period you want to know.

The most common and practical method of projecting financial statements is based on sales.

7 0

4 years ago

Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on whic

Orlov [11]

Answer:

9644

Explanation:

cost of paper on which a card is printed = $0.40 per card

cost of printing = $0.10 per card

profit made per card sold = $3.75

number of areas where customers are located (n)= 4

mean of customers from each region = 2300

standard deviation for each region = 200

note : each region is independent

The optimal production quantity for the card can be calculated going through these steps

first we determine

the cost of card = $0.10 + $0.40 = $0.50

selling value = $3.75

salvage value = 0

next we calculate for the z value

= ( selling value - cost of card) / ( selling price - salvage value )

= ( 3.75 - 0.50 ) / 3.75 = 0.8667

Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV ( 0.8667 )

next we calculate

u = n * mean demand

= 4 * 2300 = 9200

б = $200\sqrt{n}$ = 200 * 2

= 400

Hence optimal production quantity for the card

= u + Z (0.8667 ) * б

= 9200 + 1.110926 * 400

= 9644.3704

≈ 9644

3 0

4 years ago

A survey of 50 retail stores revealed that the average price of a microwave was $375 with a sample standard deviation of $20. As

ohaa [14]

Answer:

True cost of the microwave is in 99% confidence interval: $c. $323.40 to $426.60$

Explanation:

Relevant data:

$n=50\\\mu=375\\\sigma=20\\\alpha=0,001$

As we want to know the 99% confidence interval, the significance level is:

$(1-\alpha).100\%=99\%\\1-\alpha=0.99\\\alpha=0.01$

We need to estimate a confidence interval by a two tailed normal bell. Then we have:

$Z_{\alpha/2}=Z_{0.005}$

The z-value for a probability of 0.005 in a normal standard distribution is 2.576

Confidence interval is given by;:

$\=x\±Z_{\alpha/2}\sigma\\375\±Z_{\0.005}(20)\\375\±(2.58)(20)\\375\±51.60$

$375+51.60=426.60\\375-51.60=323.40$

True cost of the microwave is in 99% confidence interval: $c. $323.40 to $426.60$

6 0

4 years ago

Northwood Company manufactures basketballs. The company has a ball that sells for S25. At present, the ball is manufactured in a

Maksim231197 [3]

Answer:

1A. Compute the CM ratio and the break-even point in balls.

CM ratio = 2.5
break even point = 21,000 balls

1B. Compute the degree of operating leverage at last year.

31.82%

2. Due to an increase in labor rates, the company estimates that variable expenses will increase by $3 per ball next year. If this change takes place and the selling price per ball remains constant at $25, what will be the new CM ratio and break-even point in balls?

CM ratio = 3.57
break even point = 30,000 balls

3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $90,000, last year?

42,858 balls

4. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year, what selling price per ball must it charge next year to cover the increased labor costs?

new price of $28 per ball

5. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company's new CM ratio and new break-even point in balls?

CM = 1.32
26,250 balls

6.a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $90,000, as last year?

31,875 balls

6.b. Assume the new plant is built and that next year the company manufactures and sells 30,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage.

Income Statement

Total revenue $750,000

Variable expenses ($270,000)

Contribution margin $480,000

Fixed expenses ($420,000 )

Net operating income $60,000

Degree of operating leverage = 60.87%

6.c. If you were a member of top management, would you have been in favor of constructing the new plant?

If you cannot avoid paying the salary raise, then the company needs to carry on the new plant project.

Explanation:

sales price per ball = $25

variable expenses: $15 per unit

direct labor $9
other variable costs $6

CM ratio = net sales / CM = $750,000 / $300,000 = 2.5

break even point = total fixed costs / CM per unit = $210,000 / $10 = 21,000 balls

degree of operating leverage = fixed costs / total costs = $210,000 / $660,000 = 31.82%

new CM ratio = net sales / CM = $750,000 / $210,000 = 3.57

break even point = total fixed costs / CM per unit = $210,000 / $7 = 30,000 balls

sales level for $90,000 profit = ($210,000 + $90,000) / $7 = 42,857.14 ≈ 42,858 balls

CM ratio (new plant) = net sales / CM = $750,000 / $570,000 = 1.32

break even point = total fixed costs / CM per unit = $420,000 / $16 = 26,250 balls

sales level for $90,000 profit = ($420,000 + $90,000) / $16 = 31,875 balls

8 0

3 years ago