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Brut [27]
3 years ago
7

Bramble Corp., Inc. can produce 100 units of a component part with the following costs: Direct Materials $23000 Direct Labor 350

0 Variable Overhead 26000 Fixed Overhead 11000 If Bramble Corp. can purchase the component part externally for $59000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision
Business
1 answer:
tia_tia [17]3 years ago
7 0

Answer:

$2,500

Explanation:

Bramble Corp., Inc

Purchase the component part externally $59,000 - $4,000

=$55,000

Direct Materials $23,000

Direct Labor $3,500

Variable Overhead $26,000

Total $52,500

Hence:

$55,000 -$52,500

=$2,500

Therefore the correct make-or-buy decision will be $2,500

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Chuck Stout is the RM for the Holiday Inn Express. His 220-room property normally sells 85 percent of its rooms on Tuesday night
Dmitriy789 [7]

Answer:

winning the group romm contract: $14,967.50

normal tuesday revenue                    $16,175.50

Explanation:

group contract:

125 rooms x $ 109       =  13,625

normal rooms:

(220-125)   x $ 141.50  = <u>  13,442.5  </u>

       total revenue:          27,067.5

variable cost: 220x55=  (12,100)

   contribution:                14,967.5

If it doesn't win the contract

will sale 220 x 85% = 187 rooms at 141.5 each

187 rooms x (141.5 - 55) = 16.175,5‬

3 0
3 years ago
Find a mutually profitable price for this acquisition, that is, a price such that, on average or in expectation, the owners of b
borishaifa [10]

Answer:

The lowest price the target's owners are willing to accept for the firm is 50

Explanation:

Solution

It is known that in the market there are two firms. while one is target, the other is equity firm.

The target has several projects  at hand bu the firm's worth is uncertain. it lies anywhere between 0 and 100.

Now,

The equity believes that the target is not well managed and with a good management it's value can be increased by 50%

Now,

The owner of the target does not know the firm's worth. so, it may be profitable  or the firm to accept the average outcome

Note: Kindly find an attached copy of the complete question for this example below.

Average outcome  0 + 100/2

= 100/2 = 50

Therefore, the lowest price the target's owners are willing to accept for the firm is 50

6 0
3 years ago
Lowell Corporation paid $80,000 to acquire all of Boston Company's net assets. Boston reported assets with a book value of $60,0
Pavel [41]

Answer:

Lowell Corporation

The amount that will be recorded as goodwill by Lowell Corporation to record its investment in Boston is:

= $5,000.

Explanation:

a) Data and Calculations:

Investment in Boston Company = $83,000

Fair value of assets = $98,000

Fair value of liabilities  23,000

Net value of assets = $75,000

Goodwill = $5,000 ($80,000 - $75,000)

b) Acquired Goodwill is the difference between the cost of purchasing Boston Company ($80,000) and the net identifiable assets of Boston Company ($75,000).  The net identifiable assets are calculated by subtracting the fair value of the liabilities from the fair value of the assets.

3 0
3 years ago
What is the plowback ratio for a firm that has earnings per share of $12.00 and pays out $4.00 per share as dividends?
liubo4ka [24]

Answer:

66.67%

Explanation:

A firm has an EPS of $12

The dividend paid is $4

The first step is to calculate the payout

= 4/12

= 0.3333×100

= 33.33

Therefore the Plowback ratio can be calculated as follows

= 1-33.33%

= 0.667×100

= 66.67%

Hence the Plowback ratio is 66.67%

8 0
2 years ago
What are<br> marketing strategies best utilized for?
alex41 [277]

Answer: They are best for making your business better and making more profit out of it, here are some tips to help you

Explanation: Educate with your content.

Personalize your marketing messages.

Let data drive your creative.

Invest in original research.

Update your content.

3 0
2 years ago
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