Answer:
D. product modification.
Explanation:
This is an example of <u>Product Modification</u> <u>which refers to the improvement of the existing products by making necessary changes </u>in terms of features, quality, etc,.The purpose of the product modification is to maintain existing demand, attract new users and to face the competitors effectively to increase the profits of the enterprise also as here Lindsay's company plans to release a new version of its signature television set having advanced features, including better sound quality and high definition to maximize its profits and defeat the competitors.
Answer:
EBIT is $11.67 million
Explanation:
For computing the EBIT, first we have to calculate the operating cash flow which is shown below:
FCF = Operating cash flow – Investment in operating capital
$8.19 million = Operating cash flow - $2.19 million
So, the Operating cash flow = $10.38 million
Now we apply the operating cash flow which is shown below:
The operating cash flow is shown below:
= EBIT + Depreciation - Income tax expense
$10.38 million = EBIT + $0.9 million -2.19 million
$10.38 million = EBIT - $1.29 million
So, EBIT is $11.67 million
Answer:
$12,280,000.
Explanation:
All the direct costs involved in the manufacturing of a product except fixed cost is called prime cost e.g direct material, direct labor etc.
Direct Material = $4,200,000
Direct labor = $8,080,000
Total Prime cost = Direct material + Direct labor = $4,200,000 + $8,080,000 = $12,280,000
Overhead costs are not classified as the prime cost because these are indirect costs.
