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Norma-Jean [14]
3 years ago
13

Zhou owns a nonrental business with two separate departments. Department A generates net income of $70,000, and Department B gen

erates a net loss of $58,000. Zhou participates 800 hours in the operations of Department A and 300 hours in the operations of Department B. If Zhou is allowed to treat the departments as components of a single activity, calculate the amount of the Department B loss that can be offset against the income from Department A in the current year. $
Business
1 answer:
Margaret [11]3 years ago
8 0

Answer: $58,000

Explanation:

If Zhou is allowed to treat the departments as components of a single activity then ALL the losses suffered by Department B can be offset against the Income of Department A because they will be treated as a singular business.

Seeing as Department A has a higher income of $70,000 than the loss of Department B of $58,000, all of Department B's loss can therefore be offset by Department A.

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A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the
labwork [276]

Answer:

C alternative would yield the lowest total cost for an expected annual volume of 111 boats

Explanation:

The computation of each alternatives are shown below:

A (new location)

Fixed cost                                     $310,000

Variable cost ($400 × 111 boats) $44,400

Transportation cost                      $5,300

Total cost                                      $359,700

B (subcontract)

Fixed cost                                       $0

Variable cost ($3,200 × 111 boats)$355,200

Transportation cost                      $32,000

Total cost                                      $387,200

C (expand existing facilities)

Fixed cost                                     $74,000

Variable cost ($1,200 × 111 boats) $133,200

Transportation cost                      $88,000

Total cost                                      $295,200

Out of these, the alternative C has the lowest total cost

3 0
2 years ago
Cameron has a small graphics design business that specializes in customizing social websites. The business is growing; however,
Veronika [31]

Answer: Introducing mass production methods into his business.

Explanation:

As the given information suggests that Cameron has a small graphic design business. He is responsible for customizing social websites which is a creative and time consuming task. This also require a lot of thinking and innovation skills. At the verge of expanding his business he should avoid mass production as this will likely to reduce his quality of production and limit his creativity.

4 0
3 years ago
Joan, is a jewelry designer who had created a unique new jewelry piece called a neacklet. It can be either a necklace or a brace
patriot [66]

Answer and explanation:

In Joan's case, a general partnership will provide her control over her business that will be shared with the older gentleman who owns a jewelry store. Profits would be distributed evenly regardless of the contribution of each partner in the business. However, the older gentleman has offered Joan the chance of purchasing his share later on which would provide her the total control of the business and the patent of her creation.

The other option Joan has available is purchasing a franchise. This will allow Joan to avoid the initial costs of introducing her products to the market and the risks of not having enough consumers since her brand name is new. Though she will lose access to the patent of her creation and periodically Joan will need to pay NewJewelry a fee for using its name.

Therefore, <em>as Joan prefers to have control over her designs, it would be more convenient for her to choose the general partnership.</em>

6 0
3 years ago
Bert's Car Sales is a new firm that is still in a period of rapid growth. The company plans on retaining all of its earnings for
DaniilM [7]

Answer:

The correct choice is C)

The most logical thing to do would be to calculate the value of the stock in 5 years time.

Explanation:

This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.

The formula for the DDM, which assumes constant growth in dividends, is provided below.

P0 = D1/(r-g)

Where,

P0 = intrinsic value of stock

D1 = dividend payment one year from today

r = discount rate

g = growth rate

Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:

t0 = $0

t1 = $0

t2 = $0

t3 = $0

t4 = $0

t5 = $0.20

t6 = $0.20 * 1.035

Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.

Based on the information above,  we are able to prove that the answer is '5'.

Cheers!

3 0
3 years ago
_____ is a delivery model for software in which you pay for software on a pay-per-use basis instead of buying the software outri
zhuklara [117]

Answer:

b. SaaS

Explanation:

The full form of SaaS is software as a service. It is a software which is to be paid by per user rather than buying the outright of the software. It is a subscription based where the user must have to pay the subscription fees on a monthly or yearly basis. When the subscription tenure is expired the user must have to pay the charges again to take the service

Therefore the option b is correct

3 0
2 years ago
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