Answer:
A) Offering a line of surf boards
Explanation:
If the company makes changes to how their products are made, e.g. different materials, colors, models, etc., they are not changing their corporate strategy, they are just modifying their product line. If they decide to start selling their swimsuits in a department store, they are increasing their outlets, that's all.
But when they decide to offer a very distinct product (a surfboard), then they are changing their corporate strategy from being just a clothing store to offering diverse products that can be used at a beach.
Answer:
1. Account balance on February 1:
= Payments made + Closing balance - Purchases
= 186,500 + 59,900 - 201,400
= $45,000
2. Fees billed to customers on account in October:
= Amount collected from customers + Closing balance - Opening balance
= 449,600 + 130,770 - 115,800
= $464,570
3. Cash payments in April:
= Opening balance + Cash receipts - Closing balance
= 46,220 + 248,600 - 56,770
= $238,050
Answer:
regular sales price $270, total sales per month = 10 units
basic manufacturing costs:
variable cost per unit $120
fixed costs $3,000
if further processed, sales price $300
if further processed:
additional variable cost $20 per unit
additional fixed costs $400
At what sales price level would the new, improved radio begin to improve operating earnings?
sales price $270
revenue $2,700
variable costs -$1,200
fixed costs -$3,000
operating income -$1,500
sales price $300
revenue $3,000
variable costs -$1,400
fixed costs -$3,400
operating income -$1,800
Since relevant costs increase by $60 per unit (= $20 variable costs and $400/10 in fixed costs), then the sales price should increase more than $60 in order to lower the company's losses.
If the company wants to make a profit, then it should increase its sales price by more than $180 per unit. If the radio is processed further, in order to break even its sales price should be $480 per unit.
sales price $480
revenue $4,800
variable costs -$1,400
fixed costs -$3,400
operating income $0
Any sales price above $480 will result in an operating profit.
Answer:
$8,000
Explanation:
Since Mary is not 59 1/2 years old yet, the distributions she gets from her Roth IRA will be taxed (she only met the 5 year rule). She will have to pay a 10% penalty and income taxes on the earnings that she withdraws.
Mary will have to pay only for the earnings that she withdraws, and luckily for her the contributions are withdrawn first. Mary's earnings = $38,000 - contributions = $38,000 - $30,000 = $8,000