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jarptica [38.1K]
3 years ago
15

Assuming that the MR Corporation has an inventory of 200 defective motors costing $450,000 to produce and $150,000 to repair, if

the company receives an offer to purchase these motors for $325,000 before repairing them, the company's decision should be to sell the motors at the offered price.True / False.
Business
1 answer:
ella [17]3 years ago
6 0

<u>Answer: </u>True

<u>Explanation:</u>

Here for calculation of the profit or loss the cost of production cannot be used for comparison as they are the sunk cost it cannot be used for taking sale or rework decision. It is given the proceeds from the sale of inventory would be $425,000 and the cost of rework will be $150,000.

Net proceeds from sale of units = 425000 - 150000

=$275,000

It is clear that these profits are lower than the sale of these units without repair. Sale proceeds without repair is $325,000. So MR corporation can make decision to sell the units without repair for better benefits.

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Josh is convinced that subgroups exist within his company’s current customer base. Further, he believes that these different gro
Radda [10]

Answer:

The options are given below:

A. clustering

B. segmenting

C. positioning

D. customer lifetime value

the correct option is A.

Explanation:

Clustering, or cluster analysis, is a process which refers to the organization of objects or items into groups who have members with similar traits with respect to a particular criterion. In other words, a cluster refers to a collection of similar objects which are different from the objects of other clusters.

In the scenario presented above, we can see that different groups of customers exist, who have different reasons for purchasing the company's brand. These reasons are different from one group to another group, this is why a cluster analysis is the best option.

7 0
3 years ago
The 2018 income statement of Adrian Express reports sales of $20,510,000, cost of goods sold of $12,550,000, and net income of $
In-s [12.5K]

Answer:

1. Gross profit ratio= Gross Profit/ Sales *100    

-Sales $ 20510,000      

-Gross Profit = Sales - Cost of Goods Sold  =20,510,000 - 12,550,000 = 7,960,000  

Gross Profit Ratio= 7,960,000 / 20,510,000 * 100

= 38.81%

2.Return on Assets= Net income after tax / Average Total assets  

Where Average Total assets= (9,800,000+8,160,000) / 2= 8,980,000

Where Net income after tax= 1,940,000

Return on Assets = 1,940,000 / 8,980,000 * 100 = 21.60%

3.Profit Margin= Net income/ Sales *100    

=1,940,000 /20,510,000 *100

= 9.46%    

4. Total Assets turnover= Sales / Average assets    

=20,510,000 / 8,980,000

=2.28 times  

5 Return on Equity: Net income after tax/ Average stockholder's equity  

Where Average Stockholder's equity: (2,050,000 +3,190,000 + 1990000 + 1766000) / 2 = $4498,000

Return on Equity: 1940000/4498,000 *100

= 43.13%

7 0
3 years ago
Which characteristic places people at a higher risk for trying illicit drugs?
mestny [16]
<span>being frequently exposed to drugs would be one of the characteristics.
The exposure could be caused by living on the same neighborhood where the drugs syndicates focus their operation on, Or simply by socializing (hanging out) who use the illict drugs as a form of recreation, which will give us a peer pressure to bow down and follow the habbit.
</span>
4 0
3 years ago
If you started your own company selling iphone applications, what organizational structure would you create? why?
Sladkaya [172]

I will create a combination of functional and project-based organizational structures.  I have selected the combination due to the following rationale.

  1. There are different types and categories of iPhone applications. So, the development of each application is a project. Accordingly, competent professionals will be used and they will move from one project to another project.
  2. Selling of applications as well as taking care of HR operational aspects of the business will require people with expertise in these functional areas also. So, getting good sales as well as HR retention is the top priority for the business.
  3. A combination of these two structures will create a mix of back end and front end without any departmental inclination. So, the company will succeed.

Opting for other structures will either focus on applications or sales. But, it will be ineffective as sales will not happen without applications and applications alone cannot generate good sales without proper marketing.

Besides, there can be role confusion and conflict of interest with other organizational structure such as line only or staff only structures. Even, the selection of project-only or functional-only organizational structures will create problems and employee turnover will also increase.

Learn more about business here: brainly.com/question/24448358

#SPJ4

8 0
2 years ago
Which of the following is TRUE regarding a dead weight loss.
nikdorinn [45]

Answer:

I'm pretty sure the answer is A

8 0
2 years ago
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