Walmart's decision to build fulfillment centers illustrates which force in Porter's Five Forces Model?

Blossom Company purchased a machine with a list price of $168000. They were given a 10% discount by the manufacturer. They paid

mixer [17]

Answer:

$11,870

Explanation:

Given:

List price = $168,000

Discount = 10%

Shipping cost = $1,000

Sales tax = $6,500

Salvage value = $40,000

Useful life = 10 years

Now,

Purchasing price = List price - Discount

Purchasing price = $168,000 - [10% × $168,000]

Purchasing price = $168,000 - $16,800

Purchasing price = $151,200

Costs that are directly related to the purchase of asset are capitalized.

Thus,

Cost = Purchasing price + Shipping costs + Sales tax

Cost = $151,200 + $1,000 + $6,500

Cost = $158,700

Now,

Annual straight line depreciation = $\frac{Cost-Residual Value}{Useful life}$

Annual straight line depreciation = $\frac{158,700 - 40,000}{10}$

Annual straight line depreciation = $\frac{118,700}{10}$

Annual straight line depreciation = $11,870

8 0

3 years ago

Probett’s Garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 pe

faust18 [17]

Answer: $730.2

Explanation:

Let the total cost of cleaning clothes = X

Other variables include:

Total cost of boxes = $6×120

=$720

Ordering cost =$3

Holding costs = (10/100 ×6)12

=$7.2

Total costs of cleaning clothes =

The cost of boxes+ordering cost+holding cost

=720+3+7.2 = $730.2

3 0

3 years ago

Practice Question 25 Which one of the following is an effective method of evaluating a cost center? Compare actual total costs w

Afina-wow [57]

Answer:

C). Compare actual controllable costs with flexible budget data.

Explanation:

The Cost center is very crucial to be determined by an organization as it indirectly bestows its profitability. It is usually calculated by comparing the actual cost generated by the department to the expectations as per the budgeted cost. Thus, the most constructive method to evaluate a cost center would be the 'comparison between the actual controllable costs and the flexible budget data' as it helps in assessing the actual expense incurred during the year and whether it is lesser or greater than the cost estimated in the budget. Hence, <u>option C</u> is the correct answer.

6 0

3 years ago

Read 2 more answers

Carolyn McGee wants to get into fashion merchandising. Because of the risks involved in high fashion, and how quickly fashions g

leva [86]

Answer:

c) merchant wholesaler

Explanation:

A merchant wholesaler is a business unit that buys merchandise in bulk from manufacturers and resells to retailers in smaller quantities. The wholesale business has profit motives. It forms a link between manufacturers and retailers.

Unlike agents and brokers, merchant wholesalers take ownership of the goods they buy. Carolyne should avoid becoming a merchant wholesaler. As a wholesaler, she will own all the merchandise she purchases. She can choose to be either an agent or broker as these do not take title to the merchandise.

7 0

3 years ago

elixir [45]

Answer:Yes

Explanation:

Pooled data occur when there is a time series of different cross sections with each observations not necessarily from the same unit while Panel data is sample from the same units. The main difference between them is the "units". The units can be countries, households, schools or other things we are collating data on.

In pooled cross section, random samples from different time periods and from different units are taken e.g. we can take data on number of females and males in schools A, B and C in 2020 and schools X, Y and Z in 2023.

In pure panel data, we are using the same units e.g we can take data on genders in schools A, B and C in 2020 and collect data from the same schools in 2023. Therefore the main difference is just the units we observe.

5 0

3 years ago

Walmart's decision to build fulfillment centers illustrates which force in​ Porter's Five Forces​ Model?

Walmart's decision to build fulfillment centers illustrates which force in Porter's Five Forces Model?