Which of the following may occur as a result of a increase in the price of cell phones?

The compensation associated with executive stock option plans is:A. The book value of a share of the company's shares times the

Mekhanik [1.2K]

Answer:

The correct answer is letter "B": The estimated fair value of the options.

Explanation:

Employee Stock Options or ESOs are equity compensations given be firms typically to high-range executives. The company provides the workers with call options so employees can purchase the derivatives at a certain price and time. These types of compensations are useful as motivations for the employees to help them perform better in their duties.

5 0

3 years ago

A firm has three different production facilities, all of which produce the same product. While reviewing the firm's cost data

kakasveta [241]

Answer:

Joshua statement is correct.

Explanation:

Marginal cost:

Is the cost of producing a new unit.

Average Cost:

$\frac{Fixed Cost + Variable Cost}{UnitsProduced} = $Average Cost$

$\frac{Fixed Cost}{UnitsProduced} + $Variable Cost Per Unit= Average Cost$

If the marginal cost of this plant is lower than their other plants, it can decrease his average cost by increasing the amount produced.

This increase in production decrease the impact of the fixed cost in the unit price. At more production the average cost will decrease. Because the variable cost keeps at the same value but the fixed cost per unit decrease.

3 0

3 years ago

Lubbock county is planning to construct a bridge across the Rio de Lubbock to facilitate afternoon skiing in the El Dusto ski ba

Anarel [89]

Answer:

575,010.25

Explanation:

i = 5%. n = 20 Years. P = 6,500,000.

Annual Maintenance Cost for the first five years, A1 = 25,000.

Annual Maintenance Cost from year 6 thro' 15, A2 = 30,000.

Annual Maintenance Cost from year 16 thro' 20, A3 = 35,000.

Overhaul Costs = 500,000 at year 10.

EUAC = [6,500,000 + 500,000 (P/F, 5%, 10)] (A/P, 5%, 20) +

25,000 +[{5000 (F/A, 5%, 5) + 5000(F/A, 5%, 15)} (A/F, 5%, 20)]

= [6,500,000 + 500,000 (0.6139)] (0.0802) +

25,000 +[{5000 (5.526) + 5000 (21.579)}(0.0302)]

= 545,917.39 + 29,092.86 = 575,010.25

6 0

3 years ago

Suppose that Freddie's Fries has annual sales of $520,000; cost of goods sold of $395,000; average inventories of $11,000; avera

Nadusha1986 [10]

Answer:

8.78

Explanation:

The computation of the cash cycle is given below;

We know that

Cash cycle = Inventory conversion period + Receivables conversion period - Payables conversion period.

Here

1. Inventory conversion period = Avg. Inventory ÷ (COGS ÷365)

= (11,000) ÷ (395000 ÷ 365)

= 10.16

2. Receivables conversion period = Avg. Accounts Receivable ÷ (Credit Sales × 365)

= (27000/520000) × 365

= 18.95

3. Payables conversion period = Avg. Accounts Payable ÷ (Purchases × 365)

= (22000 ÷ 395000) × 365

= 20.33

Now the cash cycle is

= 10.16 + 18.95 - 20.33

= 8.78

8 0

2 years ago

Bain Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpe

pochemuha

<u>Solution and Explanation:</u>

Revenue 5000 multiply 6.6 33000

Unit Level Variable Cost:

Material Cost 5000 multiply 2.7 -13500

Labor Cost 5000 multiply 1.2 -6000

Manufacturing Cost 5000 multiply 1.2 -6000

Shipping and Handling 5000 multiply 0.3 -1500

Sales Commission 0

Contribution Margin 6000

Should be accepted as it will increase profitability by $6000

Part b1&b2: Cost to Make Cost to Buy

Material Cost 40000*2.7 108000

Labor Cost 40000*1.2 48000

Manufacturing Cost 40000*1.2 48000

Prod Supervisor Salary 72000

Purchase Cost 40000*6.72 0 268800

Total Cost 276000 268800

Should purchase from outside as cost is lower than making it

Part b3:

Cost to Make Cost to Buy

Material Cost 60000 multiply 2.7 162000

Labor Cost 60000 multiply1.2 72000

Manufacturing Cost 60000*1.2 72000

Prod Supervisor Salary 72000 72000

Purchase Cost 60000*6.72 0 403200

Total Cost 378000 475200

Should make in house as cost is lower

Part c: It should not be eliminated.

Elimination will decrease profitability by $72000 which is being allocated company wide facility exp. Before Allocation, actual profit is (168000-24000-72000)=$72000

Loss is because of allocation of facility expenese, which will be allocated on other segment.

5 0

3 years ago