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3 years ago

Planning is often called the primary management function because _____________.

Business

1 answer:

lesantik [10]3 years ago

4 0

Planning is often called the primary management function because,

a. it establishes the basis for all the other things managers do

-Mabel <3

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Suppose you just bought an annuity with 9 annual payments of $15,400 at the current interest rate of 11 percent per year. a. Wha

Dafna11 [192]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Suppose you just bought an annuity with 9 annual payments of $15,400 at the current interest rate of 11 percent per year.

First, we need to determine the final value with the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Then, we can calculate the present value with the following formula:

PV= FV/(1+i)^n

A)i=11%

FV= {15400*[(1.11^9)-1]}/0.11

FV= $218,125.17

PV= 218,125.17/(1.11^9)= $85,270.53

B) i= 6%

FV= {15400*[(1.06^9)-1]}/0.06

FV= $176,966.27

PV= 176,966.27/(1.06^9)= $104,746.06

C) i= 16%

FV= $269,785.02

PV= $70,940.77

3 0

3 years ago

Nature's Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef's salad selling for $7

mestny [16]

Answer:

Nature's Garden

a. Determination of the current average cost per meal:

Variable cost per meal = $3,800 ($4 x 950) based on full capacity

Fixed costs per day = $1,710

Total costs = $5,510

Average cost per meal = $5,510/950 = $5.80

b. Girl Scouts' offer of $150 for 30 girls:

Offered price per person = $5 ($150/30)

Projecting a loss of $0.60 per meal, this gives a total loss of $18 ($0.60 x 30)

Projected revenue from the offer = $150 + $18 = $168

Projected revenue per meal = $168/30 = $5.60

Actual revenue to be received per meal = $5.00

Loss of $0.60

The owner arrived at the $0.60 loss because his total costs per meal was $5.60.

c. Since the variable cost per meal is $4, the restaurant owner could accept the offer if the additional 300 meals will not increase his daily fixed costs due to lack of capacity. If the fixed costs increase with this addition, then it may not be reasonable to accept the offer. Based on this offer, the contribution to defraying fixed costs, given present capacity, is only $0.50 ($4.50 - $4) per meal.

Explanation:

Selling price of chef's salad = $7

Daily fixed costs = $1,710

Variable costs per meal = $4

Meals capacity per day = 950

Average meals = 900

Nature's Garden has a fixed cost of $1,710 based on current capacity of 950 meals per day. The fixed cost may increase with increasing capacity. This fact must be borne in mind when making decisions.

4 0

3 years ago

Return to questionItem 1Item 1 Judy's Boutique just paid an annual dividend of $3.01 on its common stock. The firm increases its

lys-0071 [83]

Answer:

Cost of Equity = 11.30%

Explanation:

Computation Cost for Equity

Using Gordon Model

Market Price = [Dividend × (1 + Growth Rate )] / (Cost of Equity - Growth Rate)

41.08 = [$3.01 × (1 + 0.037)] / (Cost of Equity - 0.037)

41.08 = [$3.01 × (1.037)] / (Cost of Equity - 0.037)

Cost of Equity - 0.037 = $3.12 / 41.08

Cost of Equity - 0.037 = $0.076

Cost of Equity = 0.076 + 0.037

Cost of Equity = 0.1130

Cost of Equity = 11.30%

3 0

3 years ago

Bogart Company is considering two alternatives. Alternative A will have revenues of $146,100 and costs of $104,400. Alternative

irinina [24]

Answer:

Choosing alternative B would increase net income by $17,100

Explanation:

The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:

Alternative A Alternative B Difference between A&B

Revenues $146,100 $185,900 $39800

Costs ($104,400) ($127,100) ($22700 )

Net income $41,700 $58,800 $17,100

Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100

4 0

3 years ago

You need a 35-year, fixed-rate mortgage to buy a new home for $340,000. Your mortgage bank will lend you the money at an APR of

cluponka [151]

Answer:

$338,712

Explanation:

we must first calculate the monthly payment using the present value of an annuity formula:

present value = monthly payment x annuity factor

present value = $340,000

PV annuity factor, 0.529167%, 420 periods = 168.38268

monthly payment = $340,000 / 168.38268 = $2,019.21

Since the monthly payment was actually higher than $1,800, the balloon payment will be almost $340,000

I prepared an amortization schedule using an excel spreadsheet. During the first years, the principal is only decreasing by $1 each month

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4 0

3 years ago

Planning is often called the primary management function because​ _____________.

Planning is often called the primary management function because _____________.