Answer:
$2,700
Explanation:
Data provided
New machine cost = $3,800
Old machine cost = $4,300
Additional donuts = 22,000
Contribution margin per unit = $0.10
The computation of Incremental annual net cash flows is as shown below:-
Incremental annual net cash flows = Operating cost saving per year + Additional contribution Margin provided by new donuts maker
= ($4,300 - $3,800) + (22,000 × $0.10)
= $500 + $2,200
= $2,700
Therefore for computing the incremental annual net cash flows we simply applied the above formula.
Answer:
one particular cost issue that I noticed as a team manger is the inability to keep our budget in line due to additional costs that kept coming up intermittently. This cost issue almost cost us the entire project.
Explanation:
At the execution phase of the project I was managing, additional costs that needed immediate attention drove us to emergency mode at a point with a huge budget overrun that pushed us to the brink of project shutdown.
To rectify the issue, I called for a meeting with my team and the following steps were taken
- we extended the time for the completion of the project.
- Requested for the services of a professional accountant to prepare a comprehensive budget that will give cater for emergencies.
- We developed good processes and habits will help significantly reduce the likelihood that your project budget will turn into a catastrophe such as weekly reviews.
Answer:
The correct answer is $30 billions.
Explanation:
The checkable deposits are given as $140 billions.
The total reserves are $51 billions.
The required reserve rate is 30%.
The required reserves will be
=30% of $140 billions
=
=$42 billions
The excess reserves will be
=total reserves-required reserves
=$51-$42
=$9 billions
Maximum expansion by lending will be
=
=
=$30 billions
So, the money supply can be expanded by a maximum amount of $30 billions.
