Answer:
e. None of these.
Explanation:
The deductible expenses are expenses that are wholly, necessarily and exclusively for business purpose. This excludes the entertainment cost which is the only avoidable cost in the classes of cost given.
Hence, Sophie's deductible expenses are
= $3,000 + $800 + $600
= $4,400
Answer:
6
Explanation:
Given that
Annual Demand = 10 bottles in 1 minute
Leading time = 60 minute
percentage of Safety stock = 0.2
Container size= 130 bottles
The computation of the number of kanban cards is given below:-
= Annual demand × Leading time (1 + percentage of safety stock) ÷ Container size
= 10 × 60 (1 + 0.2) ÷ 130
= 600 (1.2) ÷ 130
= 5.538
So, the round-up the next whole number is 6
Answer: Change Acceleration Process
Explanation:
Change Acceleration Processes is defined as change management tools which are being utilized by an organization in order to make the changes applied to an effort quicker on order to achieve a goal.
It can also be defined as the set of tools and principles that are designed to make organizational change successful.
Answer:
The total Operating income will decrease by $5,000
Explanation:
Note that some word are missing and are inserted as written below:
"<em>Benace Parts and Supply makes a variety of car parts. The company produces 6,000 A90 parts each year. Each A90 sells for $7 and has a contribution margin of $2. Currently, $16,000 of fixed manufacturing overhead is allocated to the A90 product line. If Benace Parts and Supply discontinues the A90 product line, $7,000 of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the A90 product line were to be discontinued?
</em>"
Solution:
Loss of Contribution margin if the A90 product line discontinued = Units * Contribution margin per unit
= 6,000 units * $2
= $12,000
Saving of avoidable fixed Overhead = $7,000
Decrease in Total Operating Income = Loss of Contribution margin - Saving of avoidable fixed Overhead
= $12,000 - $7.000
= $5,000 (Decrease)
Hence, the total Operating income will decrease by $5,000
Answer:
Michael
Explanation:
In this question we use the present value function that is shown in the attachment
In the first case
Future value = $0
Rate of interest = 6%
NPER = 5 years
PMT = $7,000,000
The formula is shown below:
= PV(Rate;NPER;-PMT;FV;type)
So, after solving this, the answer is $29,486,546.50
In the second case
Future value = $0
Rate of interest = 6%
NPER = 2 years
PMT = $16,000,000
The formula is shown below:
= PV(Rate;NPER;-PMT;FV;type)
So, after solving this, the answer is $29,334,282.66
Therefore, we concluded that the Michael has a greater present value
