From the above schedule of activity costs, determine the internal failure costs.

If a for-profit firm that has paid out record bonuses to its executive every year while underfunding contributions to unionized

kondor19780726 [428]

Answer:

B. Take defensive strike action.

Explanation:

One of the functions of a trade union or labor union is to protect the interest of its members in a workplace. So, if a profit firm treats its workers poorly by underfunding contribution to workers pension as required under a collective agreement while paying out record bonuses to executives then attempts attempt to reduce workers pension entitlements, the union members will most likely embark on an industrial strike.

The aim of the strike is to halt daily operations of the firm until their demands are heard and an agreement is reached. The members of the union were treated unfairly by the firm by not honoring their pension funding agreement and to make matters worse the decided to try and reduce the workers pension.

If the members don't embark on the industrial strike, the firm would reduce their pension benefits. The most likely action of the union members would be to embark on a defensive strike action to protect themselves.

7 0

3 years ago

Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is

Andreyy89

Answer:

8.15%

Explanation:

The computation of the weighted average cost of capital as follows;

= After Cost of debt × weightage of debt + cost of preferred stock × weight of preferred stock + cost of common equity × weight of equity

= 6.50% × (1 - 0.40) × 35 ÷ 100 + 6% × 10 ÷ 100 + 11.25% × 55 ÷ 100

= 1.37% + 0.60% + 6.19%

= 8.15%

8 0

3 years ago

If you throw exactly two heads in two tosses of a coin you win $101. If not, you pay me $30. Step 1 of 2 : Find the expected val

Dafna11 [192]

Answer:

The expected value of the proposition is $2.50.

Explanation:

When a coin is tossed two times, the following is the sample space (S)

S = {HT,TH,TT,HH}

Using the information in the question, we can derive the following win/loss table:

S Probability Payoff

TH 1/4 -$30

HT 1/4 -$30

TT 1/4 -$30

HH 1/4 $100

The expected value (E) can now be calculated as follows:

E = Sum of (Probability * Payoff) = (1/4 * ($-30)) * (1/4 * ($-30)) * (1/4 * ($-30)) = (1/4 * $100) = ((1/4) * (-30)) + ((1/4) * (-30)) + ((1/4) * (-30)) + ((1/4) * 100) = $2.50

5 0

3 years ago

Black Bear Auto Company incurred $120,000 of indirect advertising costs for its operations. The following 2017 data have been co

Alex

Answer:

a. Allocating cost using direct advertising costs

We have:

Cost allocated to New Cars = $60,000

Cost allocated to Used Cars = $48,000

Cost allocated to Parts and Service = $12,000

b. Allocating cost using Newspaper ad space

We have:

Cost allocated to New Cars = $72,000

Cost allocated to Used Cars = $36,000

Cost allocated to Parts and Service = $12,000

c. Allocating cost using Sales

We have:

Cost allocated to New Cars = $60,000

Cost allocated to Used Cars = $48,000

Cost allocated to Parts and Service = $12,000

Explanation:

Given:

New Cars Used Cars Parts and Service

Direct advertising costs $30,000 $24,000 $6,000

Newspaper ad space 60% 30% 10%

Sales $250,000 $200,000 $50,000

The costs allocated to each department can now be calculated as follows:

a. Allocating cost using direct advertising costs

The indirect advertising costs can be allocated using the following formula:

Cost allocated to a department = (Direct advertising costs of the department / Sum of direct advertising costs of the 3 departments) * Indirect advertising costs ................... (1)

Using equation (1), we have:

Cost allocated to New Cars = ($30,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $60,000

Cost allocated to Used Cars = ($24,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $48,000

Cost allocated to Parts and Service = ($6,000 / ($30,000 + $24,000 +$6,000)) * $120,000 = $12,000

b. Allocating cost using Newspaper ad space

The indirect advertising costs can be allocated using the following formula:

Cost allocated to a department = Percentage of Newspaper ad space of the department * Indirect advertising costs ................... (2)

Using equation (2), we have:

Cost allocated to New Cars = 60% * $120,000 = $72,000

Cost allocated to Used Cars = 30% * $120,000 = $36,000

Cost allocated to Parts and Service = 10% * $120,000 = $12,000

c. Allocating cost using Sales

The indirect advertising costs can be allocated using the following formula:

Cost allocated to a department = (Sales of the department / Sum of Sales of the 3 departments) * Indirect advertising costs ................... (3)

Using equation (3), we have:

Cost allocated to New Cars = ($250,000 / ($250,000 + $200,000 + $50,000)) * $120,000 = $60,000

Cost allocated to Used Cars = ($200,000 / ($250,000 + $200,000 + $50,000)) * $120,000 * $120,000 = $48,000

Cost allocated to Parts and Service = ($50,000 / ($250,000 + $200,000 + $50,000)) * $120,000 * $120,000 = $12,000

5 0

3 years ago

Can someone tell me if it’s correct, and which one is wrong

Nat2105 [25]

Answer:

Yes,they are correct.

Explanation:

5 0

4 years ago

Read 2 more answers