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olya-2409 [2.1K]
3 years ago
14

Investing $1,500,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in thi

s and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,712,225. Assuming similar sales next year, the 1.7% increase in demand will provide $2,783,108 of additional revenue. With the overall contribution margin of 34.2%, after direct costs this revenue will add $951,823 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $1,500,000 TQM investment, rounded to the nearest month
Business
1 answer:
vagabundo [1.1K]3 years ago
6 0

Answer:

Payback is 19 months

Explanation:

It is a capital budgeting problem. Firm has invested in TQM's Channel Support systems of $1,500,000. It will increase demand of product by 1.7%.

$166385985 x1.7071. = $166389948

Last years sales revenue was $163,608,638. A 1.7% increase will mean the saleswill be -

$166385985- $163608638 = 2781347

Thus increase in sales revenue is-

Now consider contribution margin. From total sales direct variable costs are deducted to get total contribution. It is 34.2% . So extral contribution due to 1.7% increase in sales is-

$2781347 x 34/2%= $95122

Thus increase in contribution margin will also increase profit to the same extent as there is no addition in fixed cost due to this project. So firm will be able to recover $951,221of initial investment of $1,500,000 in one year. Pay back is the time required to recover this full initial investment. It ascertained by dividing $1,500,000 amount by the net addition in profit per year. Answer is-

1,500,000+ 951221= 1.6759yrs x12months= 19months

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You are going to write an essay on the policies to reduce income inequality and poverty. You will explain the content of these p
spin [16.1K]

Answer:

The Essay is written as below; Kindly look into.

Explanation:

What is the main difference Between Income Inequality and poverty?

First of all we need to see the main difference between Income Inequality and Poverty. Poverty is a term which is used to measure the basic standard of living of individuals in the country while Income inequality is the unfairness in the distribution of income among various individuals living in an economy. It is ratio of percentage of income to the percentage of population.

Policies to reduce income in quality and poverty

We now explain certain policies to reduce income in equality and poverty. Following are some factors of polices taken to reduce income inequality and poverty.

1. Increase the minimum wage.

Normally the minimum wages is defined as “the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract. The minimum wage in any economy is designed to create a minimum standard of living to protect the health and well-being of employees. The government could increase the national minimum wage. This is an effective way of increasing the incomes of the low paid and therefore reducing wage inequality.

2. Expand the Earned Income Tax.

The policies which  encourages the higher savings rates and lower the cost of building assets for working and middle class households can provide better economic security for struggling families. Access to fair, low-cost financial services and home ownership are also important pathways to wealth. Strong evidence shows that the earned income tax  has been an effective tool to increase work and reduce poverty.

4. Invest in education.

There are differences in early education and school quality which are the most important components contributing to persistent inequality. Timely Investments in education, beginning in early childhood with programs can increase economic mobility, contribute to increased productivity and decrease inequality. AS poverty affects education and our children living in poverty tend to be exposed to more stress, more intense & longer lasting stress that negatively impact attention, focus, cognition, IQ and social skills.

In the underdeveloped countries and developing countries, people instinctively know that education is a good thing for their children, and in developed countries, we have a lot to learn and to relearn about the importance of education. People who live in poverty are aware of the fact that sending their children to school will give them opportunities that they didn't have.  

5. Progressive Taxes.

A progressive tax imposes a higher rate on the wealthy than on the poor. It's based on the taxpayer's ability to pay. Poor families spend a larger share of their incomes on cost of living expenses. They need all the money they earn to purchase and pay for basics like shelter, food, and transportation. A tax decreases their ability to afford a decent standard of living by subtracting from their income.The wealthy can afford the basics. A tax decreases their ability to invest in stocks, add to retirement savings, or purchase luxury items.

Conclusion and Comparative Assessment

We need to evaluate each of these policies mentioned above, if wisely implemented, has the potential to lift the working families out of poverty. It will support greater economic mobility and reduce the inequality rise and growth. All of these policies could be endorsed at the local, state and federal levels if there is political will.  The question arises

<em>How does income inequality affect poverty? </em>

Both of these factor; Inequality and poverty affect each other directly and indirectly through their relation with economic growth. Poverty can be reduced through increases in income, like changes in the income distribution, or through a combination of both. It is however clear that both concepts are related, but neither replaces the other.” Therefore, it can be conditional that inequality exists because there is private property or clearly established hierarchies. But there are areas where inequality is unavoidable. If policymakers at the state level are deeply concerned about reducing poverty in their countries, they should start by reducing or limiting inequalities in the society.  

4 0
3 years ago
Which of the following is the surest way to verify the reliability of information from a new or unknown source?
padilas [110]

Answer:

4. Corroborate the information with other sources

Explanation:

The surest way to verify the reliability of information from a new or unknown source is to corroborate the information with other sources.

This simply means that, if you got an information (data) from a new source such as newspaper, website, television, books, radio or anywhere else, you should confirm the credibility and reliability of these information by verifying from one or more sources.

Hence, if the information gotten from a new source is in tandem or accordance with what you find elsewhere, then that information is accurate, reliable and credible.

6 0
3 years ago
Read 2 more answers
In the early 1980s, David Jimenez, a corporate finance manager, was faced with which of the following problems?
Anton [14]

Answer:

<u>a. High inflation rates</u>

Explanation:

Note that<em> a major role of a corporate finance manager </em>is to maximize the profits of a business by providing advice as to mergers as well as buying and selling financial products.

Therefore, according to reports David Jimenez in the early 1980s was faced with the problems of high inflation rates which meant a rise in the cost of production etc for companies or businesses under his care.

4 0
3 years ago
The construction estimator told the storage unit owner that building another section of storage units will likely add 100 more s
Masja [62]

Answer:

a) The marginal benefit is greater than the marginal cost of additional units.

Explanation:

Cost-benefit analysis is the systematic process of wieghing various transactions based on comparism between their benefit and cost.

The rational storage business owner should compare the cost of building another section of storage units to the benefit from 100 renters.

If the additional cost is justified by the benefit then he can go ahead with the construction.

7 0
3 years ago
Read 2 more answers
Further From Center has 12,100 shares of common stock outstanding at a price of $55 per share. It also has 310 shares of preferr
Molodets [167]

Answer:

Market value of common stocks = 12,100 x $55 = $665,500

Market value of preferred stock = 310 x $91       = $28,210

Market value of bonds                = 370 x $2,230 = $825,100

Market value of the company                                   $1,518,810

Capital structure weight of preferred stocks

= $28,210/$1,518,810

= 0.0186

The correct answer is A

Explanation:

In this question, we need to calculate the market value of the company, which is the aggregate of market value of equity, market value of preferred stocks and market value of bond. The capital structure weight of preferred stock is the ratio of market value of preferred stock to market value of the company.

3 0
3 years ago
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