Which investment is the lowest risk?

Cornerstone, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell

kotegsom [21]

Answer:

Alternative of cleaning and shipping is better as loss value is less.

Relevant cost of this alternative is $23,000 incurred for cleaning and shipping.

Explanation:

Evaluating both the proposals

In case the goods are sold as it is then net cost/ loss = Carrying value of inventory - Sales Revenue

= $125,000 - $45,000 = $80,000

In case the goods are cleaned and shipped then

Total cost = $125,000 + $23,000 = $148,000

Revenue = $80,000

Net loss/ cost = $148,000 - $80,000 = $68,000

Thus Since the loss value is less i alternative 2 that is of cleaning and shipping, it shall be chosen.

The relevant cost of that alternative is $23,000 incurred in cleaning and shipping.

4 0

3 years ago

American apparel makers complain to Congress about competition from China. Congress decides to impose either a tariff or a quota

Ugo [173]

Answer:

Quota is preferred by the Chinese apparel manufacturers.

Explanation:

The reason is that the China has an competitive advantage of less costly workers and also that they are highly competitive in terms of prices. Usually the quality of American’s products are far much better in quality and technology. This means if the tariffs are imposed on Chinese products then their are huge revenue losses to Chinese apparel manufacturers. Whereas quota will enable them to sale their products to America which shows lower revenue losses.

So quota is far much better for Chinese manufacturer’s in case if America decides to use protectionist approach, I mean America decides to imposed trade barriers for Chinese companies to protect American companies.

7 0

3 years ago

Read 2 more answers

One of your friends states that “operations management and supply chain management are primarily of interest to manufacturing fi

Ghella [55]

This is not true. Just because it talks about operations and supply chain, it does not mean that non-manufacturing industries are not involved. Any business with an operating system has an operations department. The supply chain will depend on the type of services or goods offered. For example, an environmental services consultancy firm is not a manufacturing company. However, it has an operations department to oversee the schedule of sampling personnel for monitoring activities. Moreover, supply chain may refer to the business development department, which is primarily concerned of acquiring more clients to give their services. In addition, equipment must also be supplied so monitoring could be possible.

8 0

4 years ago

Investment spending is insensitive to changes in the interest rate and the SRAS curve is upward sloping. According to a monetari

Doss [256]

Answer:

Increase, Increase

Explanation:

An increase in monetary policy will increase the supply of money in the economy. The increase in supply will lead to an increase in nominal output. This will lead to higher GDP and more real output. There leading to higher spending in the economy.

3 0

3 years ago

You are the marketing manager for a U.S. manufacturer of disposable diapers. Your firm is considering entering the Brazilian mar

zysi [14]

Answer: If the CEO decides to go with same advertising message which was effective for the USA in Brazil, this my be a wrong decision. The products technical standards may be similar for both countries but the way people would react to same advertisement would differ for both countries.

Explanation:

This would lead to the advertising messages changing so as to achieve the desired results, factors that would affect this decision are

1. The message

2. Pricing

The message been passed from the advertisement has to be in such a way that it shows the Brazilian culture which differs from America.

Pricing of the product would also play an important role as there would already be existing competitors for diapers in Brazil. Your price should match or compete with the prices been offered by your competitors.

8 0

3 years ago