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stich3 [128]
3 years ago
12

Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based)

and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs Total Costs
Products Sales Revenue Traditional ABC
Product 540X $201,000 $56,000 $45,600
Product 137Y 159,000 55,000 25,000
Product 249S 89,000 15,000 55,400
Required:
1. For each product line, compute operating income using the traditional costing system
2. Compute operating income using the activity-based costing system
Business
1 answer:
GalinKa [24]3 years ago
7 0

Answer:

1) Part 1. Operating Income = Revenue - Operating cost

=201,000 - 56,000

=$145,000

Part 2.  Operating Income = Revenue - Operating cost

= 159,000 - 55,000

= $104,000

Part 3. Operating Income = Revenue - Operating cost

= 89,000 - 15,000

=$74,000

2. Part 1. Operating Income = Revenue - Operating cost

=201,000 - 45,600

=$155,400

Part 2. Operating Income = Revenue - Operating cost

=159,000 - 25,000

=$134,000

Part 3. Operating Income = Revenue - Operating cost

=89,000 - 55,400

=$33,600

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When Coca-Cola purchased first a part and then all of Honest Tea, what would have been appropriate ways to help this change be s
tensa zangetsu [6.8K]

Answer:

The most applicable choices in the order of importance are

C, B then A. Of course, they have to be applied at various stages of the acquisition.

Explanation:

C should have occurred (if possible) before the acquisition. Usually, when there is a major acquisition such as the one described above, it comes with good and bad tidings.

In some cases, especially one involving a large and efficient system like Coca-Cola, many positions become redundant.

In other cases, people are worried if their compensation will be affected. There are usually questions such as:

  • Will my compensation be reviewed upwards or, downwards?
  • Will my insurance or 401K be affected adversely? e.t.c.

Thus, executing a survey of Honest Teas' employees to identify such sources of anxiety and conflict related to the acquisition with the goal to address them constructively, will help the change to be successful.

Option B is one strategy that ought to have been executed upon the conclusion and official announcement of the acquisition exercise. This is the most crucial and maybe the most important part of the acquisition/takeover process.

This is true especially if there is going to be changes in management,  communication styles, and the culture.  Other benefits of team building excercises are, it increases and or improves:

  • Productivity
  • Morale
  • Staff Motivation and
  • Communication all of which are critical to the success of any organisation.

Option C: On the balance of probability, it is expected that when a bigger company like Coca-Cola acquires a smaller one, the process comes with a lot of benefits. One of such benefits is the payroll upgrade.

After all is said and done, it will serve to boost the motivation and morale of the staff if Honest Tea began to use Coca-Cola's payroll which is likely to be more robust.

Because Cocal-cola is an older, more experience and more global company, it is more likely to have more efficient reimbursement systems. If these are inculcated into the Honest Tea process, with adequate training on how to use it, it will also serve to ensure homogeneity of systems and operations which is critical to the success of an acquisition.

Cheers!

3 0
3 years ago
Which country is a good example of a high present rate of investment and a low present rate of consumer goods consumption?
anzhelika [568]

Answer:

<u>India.</u>

Explanation:

India is a country with an emerging economy that attracts a lot of investment due to its significant annual economic growth, government incentives, low taxes and little red tape.

The country stands out as the most populous democracy in the world, and despite having a global mentality for business and high investment rates, the second largest population in the world presents serious social problems, such as the caste system, which prevents Indians from having a better quality of life. There is also corruption, social inequality, religious and border disputes. All of these factors contribute to the fact that despite high investments and growth, India is a country marked by social inequality and extreme poverty for a large part of the population, which configures little access to consumer goods for most Indians.

5 0
4 years ago
What is most likely to have a negative effect on<br> domestic small business growth
xxTIMURxx [149]

Answer:

Restrictive loan policies, taxes

Explanation:

5 0
3 years ago
Bill lends Joann​ $1,000 for a year at a nominal interest rate of 6​%. If both Bill and Joann expect the inflation rate to be 3​
Kamila [148]

the answer would be 3%


7 0
3 years ago
Which best describes how advertising influences consumer choice in an oligopoly?
allsm [11]

Answer:

• Advertising undermines competition.

Explanation:

Oligopoly is a market structure which contains the small kind of firms in that it have non-significant influence. The concentration ratio defines the highest firms market share

As per the given options, the advertising impact the choice for the consumer in an oligopoly at the time when advertising undermines the competition

Therefore the option b is correct

And, the rest of the options are wrong

5 0
3 years ago
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