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3 years ago

The condensed product-line income statement for Dish N' Dat Company for the month of March is as follows:

Business

1 answer:

gladu [14]3 years ago

4 0

Answer:

It will generate a financial disadvantage for 44,065 dollar to discontinued the cup division. This division generates a positive contribution which, if discontinued will not help to absorp the common fixed cost fo the firm and move the burden entirely to Bowls Plates division making the profit to decrease.

Explanation:

$\left[\begin{array}{cccc}&$Continued&$Discontinued&$Differential\\$sales&105700&0&(105700)\\$variable cost&-61635&0&61635\\$contribution&44065&0&(44065)\\$fixed cost&-23465&-23465&0\\$Result&20600&-23465&(44065)\\\end{array}\right]$

Fixed cost:

42,300 x 15% + 42,800 x 40% = 23,465

Variable cost:

42,300 x (1 - 15%) + 42,800 x (1 - 40%) = 61,635

The differencial will be discontinued less continued column

If the result is positive there is a cost saving if discontinued

if negative there is a loss in contribution if discontinued

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SIZIF [17.4K]

individual preferences is the answer

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4 years ago

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Payout Corp. has regularly paid a quarterly dividend of $.50 per share on its 20,000 outstanding shares. Now suppose that Payout

liraira [26]

Answer:

Stock Repurchase is refers to the mechanism through which company buy backs its own shares. When the shares are repurchased the number of shares that an investor holds reduces and his cash balance increases by the amount of purchase.

Part a.

PC is regularly paying a quarterly dividend of $0.50 per share. If the company instead of paying dividend announces the buyback of $10,000 market value stock.

Compute the effect on the wealth of the shareholder who holds 100 shares and sells 1 of the shares in the following manner:

Market value of shares =100 × $50

Market value of shares = 55,000

Before repurchasing, the total value of the shares for the investor is $5,000

After repurchasing, for 1 share repurchased, the company will pay him $50.

Compute the value of the remaining shares in the following manner.

Market value of remaining shares = Remaining shares x Price after repurchase

Substitute $50 for price after repurchasing and 100 - 1 = 99 for remaining number of shares.

Market value of remaining shares = Remaining shares × Price after repurchase

Market value of remaining shares = 99 × $50

Market value of remaining shares = $4950

The total wealth of the shareholder after the repurchase is $4,950 + $50 =$5,000

Part b.

There would be no effect because the share price would remain at $50 irrespective of whether the company repurchases the shares or offers dividend.

The only difference is that the total market capitalization of the company would be reduced to $990,000 (19,800 shares at 50 per share) in case of repurchase as against the market capitalization of $1,000,000 (20,000 shares at 50 per share) in case of issuing dividend.

However, this is not important since the market price per share remains the same.

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3 years ago

Residual Disability Income pays funds to the insured, to make up for what the insured would have earned after returning to work,

siniylev [52]

Answer:

The correct answer is Total disability.

Explanation:

The total disability can be the result of an illness, derive from a previous situation of temporary disability or consequence of an accident. Its determination implies a series of economic benefits linked to a specific degree of permanent disability.

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3 years ago

The Walt Disney Company is world renowned for its destination resorts and theme parks. The company prides itself on providing th

rodikova [14]

Answer:

Those repairing the rides.

Explanation:

The Walt Disney Company uses a strategy to create a complete experience when visiting its destination resorts and theme parks. Disney's goal is to create a magical world, where it can win people over by the enchantment of its characters and shows.

For this strategy to be effective, there is a very adequate training of its employees, most of them are included as members of the cast, using fantasies of the iconic characters and assisting visitors and taking photos, making the experience more complete.

But in the case of the above question, the group of employees who are most likely to be considered the "ingroup" in the theme park are those who provide technical support to repair the tours, due to the fact that the application of their skills is more technical and less playful. , as most Disney employees must behave.

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3 years ago

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A store offers two payment plans. under the installment plan, you pay 25% down and 25% of the purchase price in each of the next

Ann [662]

Answer

a-1 . The Present Value of the installment plan is $94.38.

We calculate the PV of $25 for each of the three following years with the following formula:

$PV_{Annuity} = Constant Payment * PVIFA_{0.04,3}$

where

PVIFA = Present Value interest factor of an annuity of $1 at 4% for 3 years.

$PVIFA_{0.04,3} = 2.77509103$

We can ascertain this in excel by using the syntax : =pv(0.04,3,-1).

In this syntax, 0.04 is the interest rate, 3 is number of periods and since the annuity is $1 we write 1. We need to put in -1 because otherwise, we'll get the answer as a negative number. This is because excel treats any Present Values as outflows, and records them as negative.

Substituting the values above in the preceding equation we get,

$PV_{Annuity} = 25 * 2.77509103$

$PV_{Annuity} = 69.3772758$

In order to find the Present Value of the installment plan, we need to add the down payment of $25. So,

$PV_{instalment} = $25 + 69.3772758$

PV of instalment = $94.38

a-2. We get a 6% discount when we pay in full, so the purchase price of the product becomes:

$Purchase price = 100 - (100*0.06)$

$Purchase price = $94 (100 - 6)$

Since the purchase price of the pay in full plan is lesser than that of the installment plan, the pay in full plan is a better option.

b-1. The Present Value of the installment plan is $90.75.

Since the first instalment falls due only after one year, we calculate the PV of $25 each of four years with the following formula:

$PV_{Annuity} = Constant Payment * PVIFA_{0.04,4}$

where

PVIFA = Present Value interest factor of an annuity of $1 at 4% for 4 years.

$PVIFA_{0.04,4} = 3.62989522$

We can ascertain this in excel by using the syntax : =pv(0.04,4,-1).

Substituting the values above in the preceding equation we get,

$PV_{Annuity} = 25 * 3.62989522$

$PV_{Annuity} = 90.7473806$

b-2. In this case, the PV of the pay in full plan remains at $94 while that of the instalment plan falls to $90.75. Since the PV of the Instalment plan is lower, we'll choose the instalment plan.

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3 years ago