Answer:
It is more profitable to continue processing and sell the units for a higher price.
Explanation:
Giving the following information:
Material and processing= 55,000*0.25= $13,750
Units produced= 8,600
Option 1:
Sell for $14 now
Option 2:
Further processing for $7,100 and sell for $17
We need to determine which option is more profitable:
Option 1:
Effect on income= 8,600*14 - 13,750= $106,650
Option 2:
Effect on income= 8,600*17 - 7,100 - 13,750= $125,350
It is more profitable to continue processing and sell the units for a higher price.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
A) $790.63
B) $718.75
C) $503.13
Explanation:
a. Interest rate = 10%, monthly rate = 10%/12 = 0.10/12
Number of years = 60-20 = 40 years = 40*12 = 480 months
Goal = FV = 5,000,000
The monthly savings needed if employers offers no match =PMT(rate,nper,pv,fv) =PMT(0.10/12,480,0,5000000)
= $790.63
b. If employer offers a 10% match.
Then monthly savings needed
= 790.63/1.10
= 718.75
Monthly savings needed with 10% match by employer
= $718.75
c. Tax savings are 24%+6% = 30%.
So on the contribution of 718.75, you save a 30% tax. So. tax savings = 718.75*0.30 = $ 215.63
So, monthly contribution taking into account tax savings and employer match
= 718.75 -215.62
= $503.13
The correct answer is D) environmental forces.
The sales department of a consumer products organization realized that its rivals were adopting new customer relationship management software to keep better track of their prospects. The director of the sales department decided it would also purchase the CRM software to keep up with its rivals. This is an example of environmental forces affecting business buying behavior.
The environmental factors within an organization are technological, cultural, social, economic, demographic, operational, legal or political factors. They could be internal or external. These factors affect buying decisions of the company and that is why the director of the sales department wants to buy the CRM software to compete with its rivals and maintain good customer relationships.
The other options of the question were A) consumer forces, B) individual forces, and D) organizational forces.
