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3 years ago

LO 7.2What operating budget exists for manufacturing but not for a retail company?

Business

1 answer:

belka [17]3 years ago

8 0

Answer:

Production Budget

Explanation:

Production Budget is usually substituted with Purchasing budget for a retail company.

The operating budget usually consist of the:

sales budget,

production budget,
manufacturing overhead budget.

However, for a retail company that usually do not produce their products or inventory but purchase them, the Production Budget is usually substituted with Purchasing budget or merchandise inventory to be purchased; meaning since they do not have raw materials they substitute the number of units to be purchased, to the number of units to be produced.

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A company must decide between scrapping or reworking units that do not pass inspection. The company has 16,000 defective units t

lutik1710 [3]

Answer:

It is more profitable to sell the units for scrap.

Explanation:

Giving the following information:

Defective units= 16,000 units

Selling price dor scrap= $2.60

Reworked cost= $4.80 each

Selling price= $8.10 each.

If the units are sold as-is, the company will be able to build 16,000 replacement units for $5.50 each and sell them at the full price of $8.10 each.

The cost of 16,000 units produced is a sunk cost, therefore, it shouldn't be a part of the decision making.

Sell as it is:

Sell scrap= 16,000*2.9= 46,400

New units= 16,000*(8.10 - 5.50)= 41,600

Total income= $88,000

Continue processing:

Reworked sales= 16,000*(8.1 - 4.8)= $52,800

It is more profitable to sell the units for scrap.

7 0

3 years ago

Which action is most likely to result in an increase in the money supply?

NISA [10]

Answer:

The discount rate on overnight loans is lowered.

Explanation:

The action that is most likely results in an increase in the money supply is (C) which is the discount rate on overnight loans is lowered.

Discount rates are used to determine today's value of money paid or received. In other words the discount rate for financial institutions is the rate of return that they will experience when they re-paid the loans that they granted to other institutions. The discount rate allows the central bank of a country to control money supply in circulation this is done by either lowering the interest rate or increasing it.

5 0

3 years ago

Which investment does not guarantee you will get your money back.

ddd [48]

Stock is the answer so b

5 0

3 years ago

Read 2 more answers

Expenditures on a nation's domestic production Group of answer choices are less than its domestic production. are equal to its d

malfutka [58]

Answer:

are equal to it's domestic production

Explanation:

A country's Gross Domestic Product (GDP) is defined as value of all goods and services produced in a country during a given time. Domestic production refers to those goods and services produced at home for local consumption.

Expenditure refers to the monies expended by all entities namely; household, firms and government on goods and services with a country.

When all the entities involved in generating a country's GDP spend their money towards purchasing goods and services produced in a country, then local producers would have more money to buy materials that will be used for further production. The higher the money spent, the higher the production and vice versa.

The above is a cycle that is repeated each time household, firms and government buys locally produced goods hence expenditure on a nation's domestic production equal to it's domestic production.

5 0

3 years ago

Bill’s Bakery has current earnings per share of $3.06. Current book value is $5.00 per share. The appropriate discount rate for

o-na [289]

Answer:

For this case let X represent the earnings per share. And we know that:

$X_0 = 3.06$ represent the earnings per share at year 0

The increasing factor on this case is i = 3.3% = 0.033

So then we can find the earnings per share at year 1 like this:

$X_1 = (1+i) x_o = (1+0.033)*3.06 = 3.16098$

Then we can use the dividen growth model given by the following expression:

$P0 = \frac{X_1}{R-i}$

Where P0 represent the share price and R=12% =0.12 the discount rate and if we replace we got:

$P0 = \frac{3.16098}{0.12-0.033}= 36.3331$

So then the share price for Bill's Bakery on this case would be $ 36.33

Explanation:

For this case let X represent the earnings per share. And we know that:

$X_0 = 3.06$ represent the earnings per share at year 0

The increasing factor on this case is i = 3.3% = 0.033

So then we can find the earnings per share at year 1 like this:

$X_1 = (1+i) x_o = (1+0.033)*3.06 = 3.16098$

Dividend growth model is defined as a valuation model, used to "calculate the fair value of stock, assuming that the dividends grow either at a stable rate in perpetuity or at a different rate during the period at hand".

Then we can use the dividend growth model given by the following expression:

$P0 = \frac{X_1}{R-i}$

Where P0 represent the share price and R=12% =0.12 the discount rate and if we replace we got:

$P0 = \frac{3.16098}{0.12-0.033}= 36.3331$

So then the share price for Bill's Bakery on this case would be $ 36.33

6 0

4 years ago