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Nuetrik [128]
4 years ago
13

During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it h

ad developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange may amortize.
Business
1 answer:
Sphinxa [80]4 years ago
3 0

Answer:

$0

Explanation:

During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange may amortize.

Self created goodwill is not a 197 intangible and thus cannot be amortized.

Intangible property are property acquired for use in a trade or business or for the production of income  be amortized over fifteen years from the date of acquisition regardless of the assets useful life, good will is an example of intangible property.However,self created goodwill cannot be amortize for example customer list that you developed over the years for your own business can not be amortize.

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Take It All Away has a cost of equity of 10.96 percent, a pretax cost of debt of 5.46 percent, and a tax rate of 40 percent. The
Zinaida [17]

Answer:

8.04%

Explanation:

The formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate)  + (Weightage of  common equity × (cost of common equity)

= (0.38 × 5.46%) × ( 1 - 40%)  +  (0.62 × 10.96%)

= 1.24488% + 6.7952%

= 8.04%

The weightage of common equity would be

= 100% - 38%

= 62%

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3 years ago
The consumer price index is the A. average of the prices of the goods and services purchased by a typical urban family of four.
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Answer:

The most viable answer is Option A.

Because CPI deals with changes in price level of average market basket of consumer goods purchased by households.

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3 years ago
When managers use financial performance as the best definition of an ethical choice, they are taking a(n) ______ approach to org
Drupady [299]

The managers are taking a utilitarian approach to organizational decisions.

<h3>What is the Utilitarian Approach?</h3>

This is known to be a kind of assessment of an action that is said to be based on the effect or the consequences or outcomes.

An example is the net benefits and costs to all stakeholders on a personal level. It aim to get the greatest good for the highest or best number while making the least amount of harm.

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CMI International, a composite plastic manufacturer, wants to improve its involvement with the community, so it has established
RideAnS [48]

When CMI International, a composite plastic manufacturer attempt to find and attract qualified applicants from the external labor market for its Community Involvement Office; This process is called "recruitment ".

<h3>What is recruitment?</h3>

The practice of actively seeking out, locating, and employing individuals for a certain post or career is known as recruitment. The entire hiring process, from the first stages to the recruit's integration into the business, is covered by the term of recruitment.

The goal of recruitment is -

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4 0
2 years ago
Lindon company is the exclusive distributor for an automotive product that sells for $40 per unit and has a cm ratio of 30%. the
DIA [1.3K]
1)The cm ratio<span> is the difference between a company's sales and variable expenses (expenses proportional to units produced), expressed as a <span>percentage. Hence, we have that the costs of the product per unit are 70%= 100%-30% of the unit income, thus they are 40*70%=28$. Thus, the variable expenses per unit are 28$.
2) In order to break even, they have to make profit of 180000$ from sales. Each unit gives a profit of 12$=40$-28$ (unit profit). Hence, in order to make a profit of 180000$, the have to sell 180000/12=15000 units. Those units will bring in sales of 40*15000=600000$. We also have that if the company wants to make a net profit of 60000$, the profit from the unit sales needs to be 240000$ in total. Hence, they will need 240000/12=20000 units and the sales will be 40*20000=800000$ at that point.
3) Let us calculate the new cost. It is obviously 28-4=24$. The new profit margin per unit is 40-24=16$. Hence, to break even this time they will need only 180000/16=11250 units. They will be sold for 40*11250=450000$ in total. To make that additional profit of 60000$, they will need to sell 60000/16 more units, hence 3750 more units. This means that they need to do an additional 150000 dollars in sales. With the new variable cost, to achieve profit of 60000 they need to sell 11250+3750=15000 units and they will cost 600000$


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3 years ago
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