Answer: Alano's taxable income increases by $300,000.
Explanation:
Constructive dividends are paid to a shareholder and classified in such a way that they are not to be seen as taxable dividends.
If during auditing however, the IRS determines that it was indeed a taxable dividend, it becomes a constructive dividend.
Constructive dividends are taxable by definition so Alano's taxable income increases by the amount of dividend of $300,000.
Answer:
c. They account for a larger dollar value than class C items
Explanation:
The ABC inventory analysis is a method of classifying inventory in three main groups: A, B and C, where group A items include items that are most valuable and group C items the least valuable ones.
Conceptually similar to the Pareto principle, this method revolves around the fact businesses should focus on a limited scope of products, services or procedures that bring the most profit in comparison to other products/services.
Since group A items are critical to supply chain success, they require close monitoring by the operations managers and are rarely managed by wholly automated systems.
Like in the Pareto principle, A items usually have 10-20% share in the total item share, while they bring 70-80% of total profit.
Answer:
1. Calculate the NPV for each option available for the project. (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567.)
- go to market now = $744,000
- focus group = $852,000
- consulting firm = $916,000
2. Which action should the firm undertake?
The NPV is higher than the rst of the options.
Explanation:
expected payoffs:
- option 1 (go to market now) = (40% x $1.86 million) + 0 = $744,000
- option 2 (focus group) = (55% x $1.86 million) + 0 = $1,023,000
- option 3 (consulting firm) = (70% x $1.86 million) + 0 = $1,302,000
expected NPVs:
- option 1 (go to market now) = $744,000
- option 2 (focus group) = $1,023,000 - $171,000 = $852,000
- option 3 (consulting firm) = $1,302,000 - $386,000 = $916,000
go to market now
Answer:
Stand alone selling price of the software using expected cost plus margin approach = $65 + ( 50% * 65)
= $65 + $32.5 = $97.5
Explanation:
