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Veseljchak [2.6K]
3 years ago
13

Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable

production costs per bag are $3.80 and total fixed costs are $10,000. The cat food can be sold as it is for $9.15 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,000 cost. The additional processing will yield 10,000 bags of Premium Green and 3,000 bags of Green Deluxe, which can be sold for $8.15 and $6.15 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, the total gross profit would be:
Business
1 answer:
weqwewe [10]3 years ago
6 0

Answer:

It is more profitable to continue processing.

Explanation:

Giving the following information:

Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $3.80 and total fixed costs are $10,000. The cat food can be sold as it is for $9.15 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,000 cost. The additional processing will yield 10,000 bags of Premium Green and 3,000 bags of Green Deluxe, which can be sold for $8.15 and $6.15 per bag, respectively.

Previous split off point:

Income= 10,000*(9.15 - 3.8) - 10,000= $43,500

Post split off point:

Income= 10,000*8.15 + 3,000*6.15 - 10,000*3.8 - 12,000= $49,950

It is more profitable to continue processing.

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The total amount of equity (common stock, additional paid-in capital and retained earnings) that should appear on the balance sh
alex41 [277]

Answer:

Equal to the sum of their net assets (whether or not the assets are revalued)

Explanation:

Mathematically, equity equals the total asset of a company, less its total liabilities. This is also referred to the net assets of the company.

Equity = Total Assets - Total Liabilities

However, when two companies are merging, the total assets of the combining companies are usually revalued to reflect their current values and not the historical values usually carried in the books before the merger. In a revaluation, if the value of total assets increases, a corresponding increase will be recorded in Equity (revaluation surplus). This keeps the Equity-Net Assets equation equal at all times.

Thus, when two companies merge, the total amount of equity of the combined companies will equal the net assets of the combined companies, irrespective of whether a revaluation of the assets of the companies was done or not.

5 0
3 years ago
A firm has an issue of preferred stock outstanding that has a stated annual dividend of $4. The required return on the preferred
Nana76 [90]

Answer: $25

Explanation:

A Preferred Stock is a special stock that entities the holder to a fixed dividend. It also gives the holder priority of stock payment over common stock holders.

The Value of a preferred stock is worked out with the following formula,

Value of the preferred stock = Dividend / Required Return

So,

Value of Preferred Stock

= 4/0.16

= $25

If you need any clarification or have any questions, do comment or react.

3 0
3 years ago
Making hypothetical changes to data and observing the results is:
Shtirlitz [24]

Making hypothetical changes to data and observing the results exists option b. What-if analysis

<h3>What is What-if analysis?</h3>

What-If Analysis exists as the method of changing the values in cells to see how those differences will affect the outcome of formulas on the worksheet. Three types of What-If Analysis tools come with Excel: Scenarios, Goal Seek, and Data Tables. Scenarios and Data tables bear sets of input values and choose possible outcomes.

A what-if analysis or sensitivity analysis exists as a powerful decision-making tool that permits brands to understand what kind of business consequences can arise from modifying one or more variables.

A what-if analysis exists as a study an individual or company creates about a particular number of events where variables are adjusted to determine what the outputs would be. This approach stands typically implemented when there exists limited information from where to create a concise decision. Then, individuals control to outline all the possible outcomes to find out what their risks are.

Software like Microsoft Office Excel promotes the implementation of what-if analysis.

Hence, Making hypothetical changes to data and observing the results exists option b. What-if analysis.

To learn more about What-if analysis refer to:

brainly.com/question/24843744

#SPJ9

3 0
2 years ago
Que representa el número atómico​
Ber [7]

Answer:

es el número total de protones que tiene cada átomo

Explanation:

3 0
3 years ago
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with two risky securities,
Nesterboy [21]

Answer:

c)$568; $378; $54

Explanation:

($1,120 - $1,000)/$1,000 = 12%

(0.6)14% + (0.4)10% = 12.4%

12% = w5% + 12.4%(1 - w)

w = .054

1-w = .946

w = 0.054($1,000)

= $54 (T-bills)

1 - w = 1 - 0.054 = 0.946

0.946($1,000) = $946

$946 x 0.6 = $568 in X

$946 x 0.4 = $378 in Y.

8 0
3 years ago
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