The question is reproduced in the table below for clarity
Oven Contribution
Hours Required Margin Per Unit
Muffins 0.2 $4
Coffee Cakes 0.3 $5
Answer:
Total contribution margin = $ 60,000.00
Explanation:
<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.</em>
Therefore Crane Company should alocate the oven hours to maximise the contribution per unit of oven hour. This is done as follows:
Step 1
<em>Calculate he contribution per oven hour and rank the product</em>
cont/hr ranking
Muffin $4/0.2 hour = 20 <em> 1st</em>
Coffee cakes $5/0.3 hour= 16.67 2nd
<em>Because Muffin generates the highest contribution per hour of Oven, Crane should allocate all the resource to it</em>
Step 2
<em>Calculate the Total contribution from the production of Muffin</em>
Total contribution margin = 20 per her × 3000
= $ 60,000.00
Answer:
Bonds are a far more important source of financing than are stocks
Explanation:
There is so much of risk associated with the issue of stock. Though it is essential for any business to issue some stock, but bonds are always favorable as they have a defined maturity, defined amount associated, and defined interest payment.
There is no direct payment of interest in bonds but the expense is to be recorded in books as per the matching and accrual principle.
The discounted value of interest to be paid on maturity is recorded.
Further, there is a tax benefit on bond payments.
The memo explaining the business performance findings from the statement of cash flow will entails:
- address of the receiver
- subject of the memo
- body of the memo.
<h3>What is a
statement of cash flow?</h3>
This refers to the financial statement that shows how changes in balance sheet accounts and breaks the analysis down to operating, investing and financing activities.
Hence, the memo will inform Ms Loki about business performance findings especially on the cash position of the business such as the inflow and outflow of cash from the firm.
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An organizational characteristics that tend to lead to larger sub-optimization problems is continuous focus on optimizing a unit of a business rather than the results of the entire business
<h3>What is Sub-optimization?</h3>
In a firm. the term "Sub-optimization" occurs when there is reduced level of output as a result of an an inefficient or ineffective process or system.
The problem associated with Sub-optimization is that when there is an optimization of outcome for a subsystem, it may not generally optimize the outcome for the system as a whole.
In conclusion, the organizational characteristics that tend to lead to larger sub-optimization problems is continuous focus on optimizing a unit of a business rather than the results of the entire business
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Answer: Expectation and norms
Explanation: In simple words, expectation refers to the believe that something would happen in the future in a certain way. While norms refers to something that is standard and very probable ion nature.
It is automatically assumed that young employees will use more technology as their generation is the when where the technology gained its pace. Thus, the assumption in the statement shows expectations and norms.
