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1 year ago

What is the relationship between a firm's industry environment and the firm's earning potential?

1 answer:

3 0

An organization is more likely to generate above-average returns the more it can positively impact the environment of its industry.

The general rules of competition that affect all companies that offer comparable goods and services. Industry environment is a concept that Harvard professor Michel E. Porter advanced into the forefront of strategic thinking and company planning. The core of his work, which outlines the five factors that affect industry competition, first appeared in the Harvard Business Review. Strategic managers can link distant issues to their influence on a firm's operating environment with the use of his well-defined analytical framework.

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Kahil Mfg. makes skateboards and uses a weighted average process costing system. On May 1, 2013, the company had 400 boards in p

shutvik [7]

Answer:

Equivalent Units Materials 1700 Conversion 2630

Cost per EUP Materials: 38.308 Conversion : 19.55

Explanation:

The weighted average method can be calculated using the beginning inventory and the units started .

Kahil Mfg

Weighted Average Method

Particulars Units % Of Completion Equivalent Units

Materials Conversion Materials Conversion

Beginning

Inventory 400 70 85 280 350

Units Started 3800 40 60 1520 2280

Equivalent Units 1700 2630

Beginning WIP Inventory costs

Direct material Conversion

$ 4,349 4,658

Current period costs

60,775 46,750

Total Costs 65,124 51,408

Cost per EUP

65,124/1700 51,408/2630

38.308 19.55

5 0

3 years ago

To increase the number of orders it receives from recipients of its direct-mail advertising, the maker of All-Natural Diet Produ

STALIN [3.7K]

Answer:

C. business reply

Explanation:

In the case when we have to increase the no of orders that could be received via direct mail adverstising and the customer could use the special kind of envelope for mailling the orders so this should be an example of business reply mail as it is concerned with the business and here the orders are to be an important factor that becomes very important for the company.

Therefore the option c is correct

8 0

3 years ago

Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1$(12,000)Net Section 1

vekshin1

Answer:

a. $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.

b. $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.

Explanation:

Note: This question is not complete as part 'a' of the requirement is omitted. The complete question with the part 'a' of the requirement is therefore provided before answering the question as follows:

Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses.

Year 1 $ (12,000) Net Section 1231 loss

Year 2 10,500 Net Section 1231 gain

Year 3 (14,000) Net Section 1231 loss

a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

Explanation of the answer is now provided as follows:

When section 1231 losses exceed section 1231 profits in the prior five years, the excess loss (unapplied loss) is applied against the current year's section 1231 gain.

The amount that is reported as ordinary income is the amount of the loss that is applied against the current year's section 1231 gain.

Long-term capital gain is the excess of the current year's section 1231 gain over the the recaptured section 1231 loss from the prior five years.

You have to start with the earliest year to apply section 1231 losses from the previous five years to the current year's section 1231 gain.

Therefore, we have:

a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

As a result of the loss from the previous year that is applied to the extent of $7,500, the whole of the $7,500 net Section 1231 gain will be recorded as ordinary gain.

Therefore, $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.

b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?

Unapplied losses in previous years can be calculated as follows:

Details Amount ($)

Net Section 1231 loss in Year 3 (14,000)

Net Section 1231 gain in Year 4 7,500

Net Section 1231 loss in Year 1 (12,000)

Net Section 1231 gain in Year 2 10,500

Unapplied losses in previous years  (8,000) 

Because there are unapplied losses of $8,000 from previous years, $8,000 will be reported as ordinary gain.

Therefore, the amount to be reported as capital gain can be calculated as follows:

Amount to be reported as capital gain = Gain in Year 5 – Amount to be reported as ordinary gain = $9,000 - $8,000 = $1,000

Therefore, $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.

8 0

3 years ago

The ability to consciously recognize and name the color of an object while we simultaneously and unconsciously monitor the objec

murzikaleks [220]

Answer:

C) dual processing

Explanation:

Dual processing is the psychological ability of a person to do two things at once. One of them is usually automatic while the other is concious.

In this instance recognising the color and naming it is concious, while the unconscious action is taking note of the shape.

Concious actions can easily be changed through education and training. But the automatic or impulsive action takes a longer time before behaviour change takes place.

7 0

3 years ago

Teddy Bower is an outdoor clothing and accessories chain that purchases a line of parkas at $12 each from its Asian supplier, Te

brilliants [131]

Answer:

a) 2179 parkas

b) 0.7389

c) 174 customers

d) 10,772

Explanation:

Given:

Bower's selling price =$22

Salvage value: $0

Cost price = $12

Mean distribution= 2300 parkas

S.d = 1100 parkas

a) Number of parkas Teddy Bower should buy from Teddysports to maximize profit:

Let's first calculate overage(Co) and underage (Cu) cost.

•Cu = Selling price - Cost price

= $22 - $12

= $10

Underage cost = $10

•Co = Cost price - Salvage value

= $12 - $0

= $12

Overage cost = $12

Let's now find the critical ratio with the formula:

$\frac{C_u}{C_u+C_o}$

$= \frac{10}{12+10}$

= 0.4545

From the Excel function NORMSINV, the corresponding z value is =

NORMSINV(0.4545)

z value = -0.11

For the number of parkas Teddy Brown should order, we have:

Quantity = Mean +(z*s.d)

= 2300+ (-0.11 * 1100)

= 2179 parkas

b) for z value corresponding to expected sales of 3000 parkas, we have:

z value = (expected demand -mean)/s.d

$\frac{3000-2300}{1100}$

= 0.64

From the Excel function NOEMSDIST, the corresponding probability =

NORMSDIST(0.64)

= 0.7389 = 73.89%

In stock probability = 0.7389

c) For L(0.64) using the standard normal loss function table, L(z) =

L (0.64) = 0.158

For expected lost sales, we have:

S.d * L(z)

= 1100* 0.158

= 173.8

= 174.

On average, there is expected to be a turn away of 174 customers due to shortage.

Lets first calculate expected sales and left over inventory.

•Expected sales = Mean -expected lost sales

= 2,300 - 174

= 2,126

•Left over inventory expected=

Expected demand - Expected lost sales

= 3000 - 2126

= 874

For expected profit, we have:

$(C_u* Expected lost sales)-(C_o* Expected leftover inventory)$

=($10*2126)-($12*874)

= $10,772

Profit expected = $10,772

3 0

3 years ago