Answer:
The company should be willing to pay for the least profitable product (TC) which is $12.4/minute
Explanation:
TC GL NG
Contribution margin / unit $99.2 $129.22 $95.76
(Selling price-Variable costs)
Contribution margin/minute $12.4 $18.2 $12.6
(Contribution margin/Minutes
on the constraint)
Conclusion: Hence, the company should be willing to pay for the least profitable product (TC) which is $12.4/minute
Working
Contribution margin / unit = Selling price-Variable costs
TC= $494.4 - $395.2 = $99.2
GL= $449.43-$320.21 = $129.22
NG= $469.68-$373.92 = $95.76
Contribution margin/minute
TC= $99.2 / 8 =$12.4
GL= $129.22/7.1 =$18.2
NG= $95.76/7.60 =$12.6
Answer:
The current share price is $71.05
Explanation:
P3 = D3(1 + g)/(R – g)
= D0[(1 + g1)^3](1 + g2)/(R – g)
= [$1.45*(1.20)^3(1.08)]/(0.11 – 0.08)
= $90.20
The price of the stock today is the PV of the first three dividends, plus the PV of the Year 3 stock price given by:
P0 = $1.45(1.20)/1.11 + $1.45[(1.20)^2]/1.112 + $1.45[(1.20)^3]/1.113 + $90.20/1.113
= 1.568 + 1.695 + 1.832 + 65.958
= $71.05
Therefore, The current share price is $71.05
Answer:
generates positive cash flows over and above its internal requirements, thus providing a corporate parent with cash flows that can be used for financing new acquisitions, investing in cash hog businesses, funding share buyback programs, and/or paying dividends.
Explanation:
In Economics, a cash cow business produces large internal cash flows over and above what is needed to build and maintain the business. On the other hand, the internal cash flows of a cash hog business are too small to fully fund its operating needs and capital requirements.
Hence, a cash cow type of business generates positive cash flows over and above its internal requirements, thus providing a corporate parent with cash flows that can be used for financing new acquisitions, investing in cash hog businesses, funding share buyback programs, and/or paying dividends. Some examples of cash cow businesses are coca-cola, kellogg's corn flakes, Apple's iPhone, Microsoft Windows, Ford trucks, etc.
Answer:
False
Explanation:
The contract is not voidable at Leslie's option but rather at the supplier's option. This is because Leslie has agreed to the buy the shoes, irrespective of the price.
Should Leslie want a price stated in the contract, the case has to be taken to court and the judge will have a price stated that suits both parties.
Cheers
Answer:
(A) 2330
Explanation:
The present value of John's annuity = $2,500 x 7.24689 (PVIFAnnuity due, 8%, 10 periods) = $18,117.23
Jeff deposited $18,117.23 x 1.09 = $19,747.78
The annual dsitribution = $19,747.78 / 8.55948 (PVIFA, 8%, 15 periods) = $2,307.12
Since I used annuity factors, the answer is only an approximation. The closest option is (A)