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faltersainse [42]
3 years ago
8

Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $10,900

. The AFE Division's divisional segment margin is $77,100 and the GBI Division's divisional segment margin is $43,100. What is the amount of the common fixed expense not traceable to the individual divisions?
Business
1 answer:
In-s [12.5K]3 years ago
3 0

Answer:

$54,650

Explanation:

Total Net operating income from the two divisions is the difference between the total sales and the total expenses. The total expense is made up of the fixed cost and variable cost.  Whilst the variable cost is measured and unique to each departments, the fixed cost is not attributable to a single department.

The variable cost and sales are dependent on the level of activities. The sales less the variable cost gives the contribution margin.

As such, contribution less fixed cost gives the net operating income.

Common fixed cost

= ($77,100 + $43,100 - $10,900)/2

= $54,650

This cost would have been subtracted from each department to get the net operating income hence the division by 2.

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Wear Ever is expanding and needs $6.8 million to help fund this growth. The company estimates it can sell new shares of stock fo
kakasveta [241]

Answer: 179,811 shares

Explanation:

Given that,

Price of each share = $43

Amount needed for expansion = $6.8 million

Cost incurred for  filing and legal fees = $352000

Underwriters have agreed to a spread of 7.5 percent

Now,

Net price after the underwriter spread = $43 × ( 1 - 7.5%)

= $39.775

Total capital needed = Fund needed for growth + Legal and filing fees

= $6,800,000 + $352,000

= $7,152,000

Number of shares sold = \frac{7152000}{39.775}

= 179,811 shares

5 0
3 years ago
Jay Bird is a partner in Soundview Partnership. The adjusted basis of his interest is $19,000, of which $15,000 represents his s
Marta_Voda [28]

Answer:

Ordinary income of $6,000; Capital gain of $18,000

Explanation:

Calculation to determine the amount and character of his gain

First step is to calculate the The total gain on the sale of his partnership

Using this formula

Total gain on the sale of his partnership = ( Cash + Relief of his share of liabilities -Basis )

Let plug in the formula

Total gain on the sale of his partnership=$28,000+$15,000+$19,000

Total gain on the sale of his partnership=$24,000

Now let determine the amount and character of his gain

The UNREALIZED RECEIVABLES amount of $6,000 will be the ORDINARY INCOME while the remaining amount of $18,000 Calculated as ($24,000-$6,000) will be the CAPITAL GAIN.

Therefore the amount and character of his gain will be: Ordinary income of $6,000; Capital gain of $18,000

4 0
3 years ago
Swinnerton Clothing Company's balance sheet showed total current assets of $3,300, all of which were required in operations. Its
Zanzabum

Answer:

c. $2,580

Explanation:

Calculation for What was its net operating working capital that was financed by investors

Current assets $3,300

Less Accounts payable ($575)

Less Accrued wages and taxes ($145)

Net operating working capital $2,580

($3,300-$575-$145)

Therefore What was its net operating working capital that was financed by investors will be $2,580

7 0
3 years ago
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at
xxTIMURxx [149]

Answer:

(a) $34.4

(b) $38.70(Approx).

(c) $61.9524

Explanation:

(a) Current price:

=\frac{D1}{Required\ return-Growth\ rate}

=\frac{2.15\times(1+0.04)}{0.105-0.04}

=\frac{2.15\times 1.04}{0.105-0.04}

      = $34.4

We use the formula:

A=P(1+\frac{r}{100} )^{n}

where,

A = future value

P = present value

r = rate of interest

n = time period

(b) A=P(1+\frac{r}{100} )^{n}

A=34.4(1.04 )^{3}

         = 34.4 × 1.124864

         = $38.6953

         = $38.70(Approx).

(c)  A=P(1+\frac{r}{100} )^{n}

A=34.4(1.04 )^{15}

         = 34.4 × 1.80094351

         = $38.6953

         = $61.9524

3 0
3 years ago
A German company wants to buy dollars to purchase U.S. bonds. In the open-economy macroeconomic model of the U.S., this transact
lilavasa [31]

Answer:

The correct answer is d. the supply of currency in the foreign exchange market, and the demand for loanable funds.

Explanation:

In an open economy, we must add the external sector, which includes the Trade Balance or net exports and the Capital or Financial Balance.

Net exports, being part of aggregate expenditure, are incorporated into the SI. However, the inflows and outflows of payment commitments or international financial assets are recorded in the capital account, which gives rise to a new curve, the BB.

We know that in an open economy, monetary phenomena depend on the exchange system that the country follows: fixed or flexible exchange rate.

Under a fixed exchange rate, the variable that is permanently and permanently adjusted to an imbalance in the money market is international reserves.

Under the flexible exchange rate, the adjustment variable is the exchange rate.

With a fixed exchange rate, an increase in the money supply pressures upward on the level of domestic prices, which encourages imports and discourages exports, causing us to lose competitiveness against our business partners. This translates into a permanent and definitive loss of international reserves, which thus constitute the adjustment variable, that is, the monetary phenomenon.

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3 years ago
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