Answer: manufacturing
Explanation:
In an enterprise resource planning (ERP) system, the manufacturing component provides information on production costs and pricing.
Enterprise Resource Planning is the gathering and organization of business data by using an integrated software suite.
It should be noted that ERP software typically contains applications that helps in automating certain business functions such as sales quoting, production, accounting etc
Answer:
The expected price of the stock is $122.03
Explanation:
To calculate the expected price of the stock at the end of the year or at Year 1, we first need to determine the required rate of return on the stock. We will use the CAPM equation to calculate the required rate of return.
The required rate of return is calculated as,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.05 + 1 * (0.14 - 0.05)
r = 0.14
We already have the price of the stock today, the D1 and the required rate of return. Using the constant dividend growth model of DDM, we calculate the growth rate in dividends to be,
P0 = D1 / (r - g)
115 = 9 / (0.14 - g)
115 * (0.14 - g) = 9
16.1 - 115g = 9
16.1 - 9 = 115g
7.1 / 115 = g
g = 0.0617 or 6.17%
Using the same formula and replacing D1 with D2, we can calculate the price of the stock at the end of the year or at start of Year 1.
P1 = 9 * (1+0.0617) / (0.14 - 0.0617)
P1 = $122.03
Answer:
C. Online boutique is the answer
Answer:
<u>Part(a) Differential analysis as at February 24</u>
Make (Alternative 1) :
Direct Materials $35.00
Direct labor $18.00
Variable Overheads $2.70
Fixed Overheads $0.00
Total Make Costs $55.70
Buy (Alternative 2) :
Total Purchase Cost $59.00
<u>(b) On the basis of the data presented, would it be advisable to make the carrying cases or continue buying them? </u>
It is clear that from comparison of the cost of Purchase and the Cost of Making the Carrying Cases, the Cost of Making the Carrying Cases is lower than the Cost of Purchasing the Cases by $3.30
It is thus advisable to make carrying cases instead of buying them
Explanation:
Total Make Costs;
The Factory fixed overheads are irrelevant to this decision hence they were ignored in the make cost calculations.