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stealth61 [152]
3 years ago
10

9. Assume that Cane expects to produce and sell 97,000 Alphas during the current year. A supplier has offered to manufacture and

deliver 97,000 Alphas to Cane for a price of $148 per unit. What is the financial advantage (disadvantage) of buying 97,000 units from the supplier instead of making those units
Business
1 answer:
fenix001 [56]3 years ago
8 0

It is sort of outsourcing exercise which is executed as a cost controlling measure thereby enabling management to focus on critical matters.

Explanation:

Here, if in the given case CANE outsources manufacturing activity to an established supplier it can save on hiring factory and cost and lab our overheads and can effectively focus on more critical functions including sales and strengthening supply chain management .

They can effectively deploy capital to more productive options.

This process if considered after due diligence will enable it to improve its financial position.

It only needs to ensure that supplier is committed to service, quality and delivery with flexibility so that financial benefits syncs with the set of expectations.

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Which of the following most accurately explains why the supply curve for a good slopes upward to the right?
goldenfox [79]

Answer:

c. There is a direct relationship between a good’s price and the amount offered for sale by suppliers.

Explanation:

According to the law of supply concept, it shows a direct relationship between the price and the quantity supplied.  

As the price is rising, the quantity supplied also increases and if the rice is declining, the quantity supplied is also decreases

Since the supply curve slopes upward in the right direction which reflects the direct relationship between the price and the quantity supplied.

3 0
3 years ago
The Investments Fund sells Class A shares with a front-end load of 5% and Class B shares with 12b-1 fees of 0.75% annually as we
elena-14-01-66 [18.8K]

Answer:

The responses to the given choices can be defined as follows:

Explanation:

Assume is the investment. Each original Class A investment is of the net-front unburden. The portfolio will be worth four years from now:  

\$1,000 \times 5\% = \$50 =\$1,000 - \$50 = \$950\\\\         \$950 (1 + 0.13)^4 = \$950 (1.13)^4 = \$950 (1.630474) = \$1,548.95\\\\  

You will place the total of \$1,000 on class B shares, but only 12b-1will be paid (13-0.75 = 12.25) at a rate of 12.25\% and you'll pay a 1\%back-end load charge if you sell for a four-year period.

After 4 years, your portfolio worth would be:      

\$1,000 (1 + 0.1225)^4 = \$1,437.66   \\\\      \$1,000 (1.1225)^4 = \$1000 (1.587616) = \$ 1,587.62  

Their portfolio worth would be: after charging the backend load fee:      

\$1,587.616 \times 0.99 = \$1,571.74   \\\\                     Amounts     \\\\     Class A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \     1,548.95\\\\          Class B \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \     1,571.74 \\\\

When the horizon is four years, class B shares are also the best option.

Class A shares would value from a 12-year time frame:

\$950 (1.13)^{12} = \$950 (4.334523) = \$4,117.80  \\\\

In this case, no back-end load is required for Class B securities as the horizon is larger than 5 years.

Its value of the class B shares, therefore, is as follows:

\$1,000 (1.1225) 12 = \$1,000 (4.001623) = \$4,001.62 \\\\Amounts    \\\\\      Class A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,117.80\\\\          Class B \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \   4,001.62\\\\

Class B shares aren't any longer a valid option in this, prolonged duration. Its impact on class B fees of 0.75\%\ \ 12b-1cumulates over a period and eventually outweighs the 5\% the burden of class A shareholders.

4 0
3 years ago
Five example of the key elements of effective event planning?​
evablogger [386]

Answer:

1) Know your Audience.

2)Engage your Guests.

3) Set Reasonable Budget Expectations.

4)Set an Intention for your Event.

5)Draft a plan and follow the timeline: ...

Explanation:

7 0
3 years ago
A company declared and paid a cash dividend. The dividend would appear on the company's statement of cash flows as: Select one:
Kisachek [45]

Answer:

d. a deduction under financing activities.

Explanation:

As if the company declared and paid the cash dividend so the same is to be considered in the financing activities of the cash flow statement.

This amount should be shown in the negative amount as it decreases the cash that means it is an outflow of cash

Hence, the correct option is d. and the same is to be considered

3 0
3 years ago
Playful Pens, Inc., makes a single model of a pen. The cartridge for the pen (which contains the ink) is manufactured on one mac
Elan Coil [88]

Answer:

a) B. Machine 2

b) $220,000

b-2) Yes , positive differential profit.

c-1) $162,000

c-2) Yes , positive differential profit.

Explanation:

B) Differential revenues  = $10.40 x 200,000 = $2,080,000

Differential costs:

Variable cost on new production = $5.20 x 200,000 = $1,040,000

Fixed costs = $820,000

differential profit = $2,080,000 - $1,040,000 - $820,000 = $220,000

c) Differential revenues  = $10.40 x 100,000 = $1,040,000

Differential costs:

Variable cost increase on current production = ($4.62 - $4.10) x 800,000 = $416,000

Variable cost on new production = $4.62 x 100,000 = $462,000

differential profit = $1,040,000 - $878,000 = $162,000

5 0
3 years ago
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