Answer:
The financial advantage of buying 72,000 units from the supplier instead of making those units is that Cane would not its traceable fixed manufacturing overhead.
If we assume that Cane's fixed costs are made up of traceable fixed manufacturing overhead of 60% or $60,000 and 40% of common fixed expenses or $40,000, then $60,000 would not be incurred by Cane in the period it decides to buy from the supplier.
Explanation:
Traceable fixed manufacturing overheads are the expenses that can be traced to production units. We can say that they are variable with production units or that production gives rise to them. This implies that when there is production, such costs are incurred, whereas, they are not when there is no production. They arise due to usage. For example, more utility energy is consumed based on production.
The common fixed expenses are allocated costs, including administrative expenses, for example. By their nature, they are generally unavoidable whether Cane decides to produce or buy from the supplier. And since they must be incurred and allocated, they are not relevant in making a buy or make decision.
Answer: $917 million
Explanation:
From the question, we are informed that the required reserve ratio is 12 percent and that the commercial banking system has $110 million in excess reserves.
Based on the above analysis, the maximum amount of money which the banking system could create will be:
= $110,000,000/12%
= $110,000,000/0.12
= $ 917,000,000
= $917 million
Normalization <span>is the process of converting a poorly-structured table into two or more well-structured tables.
The main purpose of normalization is to make the table more readable by non-experts so it could be easier to use as a tool to help in the decision-making process.</span>
Answer:
Current Price of Stock $59.20
Explanation:
The computation of the current market price is shown below:
<u>Particulars Time PVF at 12% Amount ( in $) PV ( in $)</u>
Dividend 1 0.8929 14.40 12.86
Dividend 2 0.7972 14.40 11.48
Dividend 3 0.7118 14.40 10.25
Dividend 4 0.6355 14.40 9.15
Dividend 5 0.5674 14.40 8.17
Dividend 6 0.5066 14.40 7.30
Current Price of Stock $59.20
Answer: Read the following Scenario. Remembering what we learned about writing for your reader; create the documents for this situation. Use a letter format for letters and a memo format for a memo. This assignment requires sending unfavorable news. Keep in mind that each of the parties you are writing have different interests and your letters should be adjusted to give them what they need to know. In some situations it is best not to share all the information. Think about your readers as you compose. Your employer has always provided free child care to all employees with children ages 3 months to 5 years. For its 50 years of operation, the company has taken great pride in being a family-friendly employer. Tough economic times for the industry and rising costs of operation for the child care center, however, now require that the company begin charging parents $100 per month per child for the services of the child care center. According to the president of the company it was either that or freeze wages for all employees or lower the already slim dividend paid to the company’s stockholders and risk a loss of investors. The president of the company directs you to write three letters regarding this important change: one to parents using the child care center, one to all employees, and one to the stockholders. Note that parents will also receive the letter addressed to employees. Note also that some employees are also stockholders. The president recognizes the sensitivity of this policy change and thus will also expect from you a memo justifying the variations you made in the three letters. Make sure you have three letters and one memo. Make up addresses and/