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Zolol [24]
3 years ago
10

The following information pertains to the three divisions of Marlow Company:

Business
1 answer:
lubasha [3.4K]3 years ago
5 0

Answer:

The correct option is B

Residual income = ($9000)

Explanation:

<em>Residual Income is measure of how much a division or a part of a business is able to generate over and above the company-wide opportunity cost of capital.</em>  

A division with a controllable  over and margin over and above the cost of fund is evaluated to be profitable .

Residual income = Controllable margin - (cost of capital(%)× operating assets)

Cost of capital = Target ROI

Residual income for Division X

=  36,000 - (15%× 300,000 )

= ($9000)

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At the high and low levels of activity during the month, direct labor hours are 90,000 and 40,000, respectively. The related cos
andre [41]

Answer:

The fixed cost at any level of activity is $48,000 while the variable cost per unit at any level of activity is $1.30

Explanation:

The total cost is a function of the fixed and variable cost. Whilst the fixed cost does not change at a certain range of activities level, the variable cost changes as the level of activities(units produced or sold).

Using the high and low levels of activities given, let the variable cost per unit be v and the fixed cost F

for the high level,

F + 90,000v = 165,000

For the low level

F + 40,000v = 100,00

Solving both equations simultaneously,

50,000v = 65,000

v = $1.30

F + 40,000($1.30) = 100,000

F = 100,000 - 52,000

F = $48,000

5 0
3 years ago
g A joint product is: Select one: a. Any product which consists of several parts. b. Any product produced by a company with more
mr_godi [17]

Answer:

The correct answer is letter "D": One of several products produced from a common input.

Explanation:

Joint products are those manufactured by large companies whose production process is the same at an early stage for all the different products being produced, but at a certain stage, called a split-off, the products begin to have their own characteristics.

Since the products initially come from the same input, the costs are allocated in the bundle. After the split-off, the cost of production is allocated to each type of product.

8 0
3 years ago
An amount of $2,500 is deposited in a savings account that earns 2.5% interest. Which is the future value
Lynna [10]

Answer:

$3,208

Explanation:

The computation of the future value is shown below;

As we know that

Future valie = Present value × (1 + rate of interest)^number of years

where

Present value is $2,500

Rate of interest = 2.5% ÷ 4 = 0.625%

And, the time period is = 10  × 4 = 40

So, the future value is

= $2,500 × (1 + 0.625%)^40

= $3,208

5 0
3 years ago
Which of the following is true about finding the present value of cash flows? Finding the present value of cash flows in future
Neko [114]

Answer:

The correct answer is A: %70,154

Explanation:

Giving the following information:

True: Finding the present value of cash flows in future years tells you how much you would need to invest today so that it would grow to equal the given future amount.

What is the value today of a $158,000 cash flow expected to be received 12 years from now based on an annual interest rate of 7%?

We need to use the following formula:

PV= FV/(1+i)^n

FV= final value

i= interest rate

n= number of years

PV= 158000/(1.07^12)= $70,154

3 0
3 years ago
Clay is a marketing student learning how to evaluate value propositions for effectiveness. He looked through ten different propo
Pepsi [2]

Answer: they were generic, and they had no unique value communicated

Explanation:

Value proposition refers to the promise

that's made by an organization to its customers indicating why a product should be bought.

Since Clay looked through ten different propositions and found them to all be ineffective, the reason attributed to this will be due to the fact that the propositions were generic, and had no unique value communicated.

8 0
3 years ago
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