Which of the following questions does not involve any link between your financial plan and your values?

Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types o

Nikolay [14]

Explanation:

The computation of the activity rate for each activity is shown below:

As we know that

Activity Rate = Expected rate ÷ Activity Driver

For Handling material = $650,000 ÷ 100,000 = $6.50 per part

For Inspecting product = $925,000 ÷ 1,500 parts = $616.67 per batch

For Processing purchase orders = $130,000 ÷ 700 = $185.72 per orders

Paying supplies = $200,000 ÷ 500 = 400 per invoices

Insuring the factory = $325,000 ÷ $40,000 = $8.125 per square foot

Designing packaging = $100,000 ÷ 2 models = 50,000 per models

5 0

4 years ago

3. There a number of market entry strategies that businesses use in entering into markets outside their countries. a) Distinguis

sattari [20]

Answer:

a) Distinguish between the use of Franchising and Joint Venture as modes of entry into other countries by global businesses.

Franchising consists in the licensing of aspects of production and intellectual property to a another party: the franchise.

A Joint Venture is a business union between two or more parties, in which they split profit as well as costs and responsabilities.

b) What are the respective advantages and disadvantages of both strategies?

Franchising can be a quicker way to expand into foreign markets. The flexibility of the method, and the lower capital requirements are the reason why. This can be seen in the success that American fast-food brands have had using this method to expand in global markets.

A Joint-Venture can be more difficult to use for market expansion, however, it can be more profitable, because the profit will not be split among as many parties as in franchising, and more importantly, the firm maintains a higher control of the operation.

7 0

3 years ago

Ginny and Eric are partners at an architecture firm. They are trying to determine which of them has a comparative advantage in b

blondinia [14]

Answer: (i) $20 per model

(ii) $27 per model

(iii) Ginny has a comparative advantage in building models.

Explanation:

A country or a firm has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodities is lower than the other country or firm.

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

Therefore,

Ginny's Opportunity cost of producing one model = $\frac{400}{20}$

= $20 per model

Eric’s opportunity cost of building models = $20 + 35% of $20

= $20 + $7

= $27 per model

Hence, Ginny has a comparative advantage in building models because Ginny's opportunity cost of building model is lower than Eric's opportunity cost.

5 0

3 years ago

A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expect

kipiarov [429]

Answer:

$18.29

Explanation:

It is very simple as per the question to calculate the current stock price.

The formula for calculating the Stock price is,

P = D/(r-g)

Hence, we calculate as follows,

Price = 0.75/(0.105-0.064)

Price = 0.75/0.041

Price = $18.29

Good Luck.

5 0

3 years ago

A certain bookstore chain has two stores, one in San Francisco and one in Los Angeles. It stocks three kinds of books: hardcover

Hoochie [10]

Answer:

Hard Soft Plastic

San Francisco 3,600 7,800 12,000

Los Angeles 2,400 1,800 3,000

Explanation:

The sales during January were as follows:

Hard Soft Plastic

San Francisco 600 1,300 2,000

Los Angeles 400 300 500

If the sales during the next five months were actually the same, then to determine total sales all we have to do is multiply January's sales by 6.

600 x 6 = 3,600 1,300 x 6 = 7,800 2,000 x 6 = 12,000

400 x 6 = 2,400 300 x 6 = 1,800 500 x 6 = 3,000

7 0

3 years ago