The effectiveness of the different instruments used to protect property rights depends on:

Towson Corp., had 6,000 shares of $100 par, 4% cumulative preferred stock as of January 1, 2018. No additional shares of preferr

aleksandr82 [10.1K]

Answer:

Common Dividend paid in 2019 = $37,000

Explanation:

Given:

Number of shares = 6,000

Rate = 4% = 0.04

Share price = $100

Computation of per year Dividend

Dividend = Number of shares × Share price × Rate

Dividend = 6,000 × $100 × 0.04 = $24,000 per year

Preferred dividend for 2 years = $24,000 × 2 = $48,000

Computation of Dividend paid in 2019:

Total Dividend paid = $85,000

Preferred dividend for 2 years = $24,000 × 2 = $48,000

Common Dividend paid in 2019 = $85,000 - $48,000

Common Dividend paid in 2019 = $37,000

8 0

3 years ago

Select the correct answer. Why do businesses need to achieve points of parity in the market? A. to reduce the loss of customers

nadezda [96]

Businesses need to achieve points of parity in the market because: C. to sell products that are the same as those of competitors.

Explanation:

A point of parity is considered as an important element in the business. It helps in making the consumer to use your brand or product comparing with the product of the competitors.

The point of parity helps in negating the competitor's point of difference. The company can survive in the competitive business only if it follows and covers the point of parity. Point of parity helps to refocus your brand showing that it is good as compared to other competitive brand.

8 0

4 years ago

Read 2 more answers

The following information relates to the Magna Company for the upcoming year, based on 402,000 units. Amount Per Unit Sales $ 10

MAXImum [283]

Answer:

Ans. The operating profits will increased by $216,683.58 by increasing the sales by 66,000 units ( $1,049,400)

Explanation:

Hi, first we have to consider that Magna has sufficient capacity to handle this additional order, it means that its manufacturing overhead is not going to increase, in other words, our costs of goods sold, for the first 402,000 units are going to be $13/unit (COGS no manufacturing overhead)+ $1,360,000 of fixed manufacturing overhead.

We could do the same with the operating expenses, but there is no use for that since no additional operating expenses (as a whole) need to be added for this additional 66,000 units.

Before this additional 66k sale, this is what we have.

Unit

Amount 402,000

Sales $26 $10,452,000

COGS(no overhead) $13 $5,072,000

Fixes man overhead $3 $1,360,000

Gross Margin $10 $4,020,000

Oper expenses $0.86 $346,300

Fixed Marketing expense $0.29 $116,000

Operating profit $3,557,700

Now, let´s see how it looks when we add this additional 66k units to the P&L statement.

Unit

Amount 468,000

Sales $26 $10,452,000

Sales( at $15.90) $15.9 $ 1,049,400

COGS(no overhead) $13 $5,904,716

Fixes man overhead $3 $1,360,000

Gross Margin $10 $4,236,684

Oper expenses $0.86 $346,300

Fixed Marketing expense $0.29 $116,000

Operating profit $3,774,383

Therefore, the company´s operating profits will increase in $216,683.58

($3,774,383.58 - $3,557,700).

Best of luck.

4 0

4 years ago

Maurice Corporation has two major business segments; Philippe and Chip. In April, the Philippe business segment had sales revenu

kati45 [8]

Answer:

b.) $140,000

Explanation:

The computation of the segment margin is shown below:

Sales Revenue $500,000

Less: Variable Expenses ($280,000)

Contribution Margin $220,000

Less: Traceable fixed Expenses ($80,000)

Segment margin $140,000

By deducting the variable expense from the sales we can get the contribution margin and after that the fixed cost is deducted from the contribution margin so that the segment margin could come

3 0

3 years ago

6. When you find income elasticity of demand, you can determine whether the goods are normal or inferior based on whether your a

Rama09 [41]

Explanation:

Normal goods are the whose demand decreases with increase in price whereas in economics inferior goods are those whose demand decreases with increase in people's income.

Normal goods have a positive income elasticity of demand; as incomes rise, more goods are demanded at each price level.Inferior goods have a negative income elasticity of demand; as consumers' income rises, they buy fewer inferior goods.

5 0

3 years ago