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pickupchik [31]
3 years ago
14

Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $96,000 to produc

e 1,375 units that can be sold now for $89,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of $290 per unit. If Holmes processes further, the units can be sold for $440 each. Should Holmes sell the product now or process it further
Business
1 answer:
Shtirlitz [24]3 years ago
6 0

Answer:

Yes

Explanation:

The computation is shown below:

Particulars         Sales As Is   Process further     Incremental Accounting

Sales            $89,500       $605,000               $515,500

                                             (1,375 units × $440)

Less:

Additional Process costs $398,750                $398,750

                                          (1,375 units × $290)

Total           $89,500       $206,250                $116,750

Based on the incremental income, Holmes should process it further.

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The underlying assumption of the dividend discount model is that a stock is worth: A. the present value of the future dividends
labwork [276]

Answer:

A. the present value of the future dividends the company pays.

Explanation:

The net present value (NPV) of a project can be defined as the difference between present value of cash-inflow into a project and that of cash-outflow over a specific period of time. Thus, it is simply the value of all cash-flows for a project with respect to its life span.

The underlying assumption of the dividend discount model is that a stock is worth the present value of the future dividends the company pays.

Generally, all financial assets or securities can be securitized i.e turned into a tradable item that can be used to generate money for a potential investor or the owner of the financial asset.

For example, a mortgage backed security can be used as securitization.

8 0
3 years ago
The following financial information was summarized from the accounting records of Buddy Corporation for the current year ended D
Nat2105 [25]

Answer:

(a) $56,730

(b) $36,330

(c) $ 51,800

(d) $24,800

(e) $36,230

Explanation:

(a) Gross profit for the Dalmatian Division:

= Net sales - Total Cost of goods sold

= $87,000 - $30,270

= $56,730

(b) Income from operations from the Dalmatian Division:

= Gross Profit - Direct operating expenses

= $56,730 - $20,400

= $36,330

(c) Gross profit for the Beagle Division:

= Net sales - Total Cost of goods sold

= $99,000 - $47,200

= $ 51,800

(d) Income from operations from the Beagle Division:

= Gross Profit - Direct operating expenses

= $51,800 - $27,000

= $24,800

(e) Total income from operations;

= $36,330 +  $24,800

= $61,130

Earnings before interest and taxes:

= Total income from operations - General overhead

= $61,130 - $18,160

= $42,970

Earnings before taxes:

= Earnings before interest and taxes - Interest expense

= $42,970 - $2,040

= $40,930

Net income = Earnings before taxes - Income taxes

                    = $40,930 - $4,700

                    = $36,230

6 0
3 years ago
Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list
Pepsi [2]

The correct answer is B) Compute gross margin per sales point.

Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list of all department stores and their sales for the previous year. Next, she estimates Bloomingdale's market share within the industry. To find the value of one share point, Caroline must <em>compute the gross margin per sales point.</em>

Gross margin is part of the income statement that firms or industries need to elaborate every year. This metric indicates a detailed description of a company's revenues, expenses, and profit. When preparing a budget, gross margin defines the limits a company must take into account. That is why Caroline must pay close attention to the calculation and computing.

3 0
3 years ago
Fifty-five percent of what a listener feels about a conversation he has just completed is based on _____.
IrinaK [193]

Answer:

The answer is the other person’s nonverbal communication.

Explanation:

The concept mentioned in the question comes from Albert Mehrabian’s misquoted research results, which stated that in communication, 55% of our perception about the conversation comes from non-verbal communication, 38% from the tone of the speech, and 7% from the actual content of the conversation. However, this quote was wrongly cited, and Mehrabian himself has refuted this, since it is only selectively citing a research experiment that he conducted, which following research replicating the conditions have consistently debunked.

3 0
3 years ago
The promotional tool that stimulates consumer purchasing and dealer interest using short term activities such as displays and tr
Andrews [41]

The promotional tool that stimulates consumer purchasing interest with the help of using short-term activities such as displays and trade shows is<u> sales promotion</u> programs.

<h3>What do you mean by sales promotion?</h3>

Sales promotion applications are designed to complement private selling, advertising, public relations, and different promotional efforts. Sales promotions can take vicinity within and outside of the company.

Therefore, The promotional tool that stimulates consumer purchasing interest with the help of using short-term activities such as displays and trade shows is<u> sales promotion</u> programs.

Learn more about <u>sales promotion:</u>

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4 0
2 years ago
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