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uysha [10]
3 years ago
5

At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty program was expecte

d to cost Angel 4% of net sales. Net sales made under warranty in 2021 were $180 million. Fifteen percent of the units sold were returned in 2021 and repaired or replaced at a cost of $5.3 million. The amount of warranty expense on Angel's 2021 income statement is:
Business
1 answer:
WINSTONCH [101]3 years ago
7 0

Answer:

$7.2 million

Explanation:

Given that

Net sales = $180 million

Cost of the warranty program  = 4%

The computation of the amount of warranty expense is given below:-

Amount of warranty expense = Net sales × Cost of the warranty program

= $180 million × 4%

= $7.2 million

Repairs cost less than the expected liability during the year and no extra expenditures are reported.

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- identify changes and trends as a source of new enterprise ideas
Elena-2011 [213]

Changes and trends are sources of new enterprise ideas. An example can be found in the advent of technology. The advent of internet-enabled devices has led to the growth of internet service providers. The use of headphones, Bluetooth devices, and other accessories has been borne because of new technologies that were not available some fifty years ago.

Changes in trends can lead to the birth of new businesses. Changes in weather condition that pose the risk of skin damage has led to the popularization of sunblocks.

Internet-enabled devices have also led to the introduction of enterprises that deal with gadgets accesories.

These examples show that changes and trends are sources of new enterprise ideas.

Learn more about entrepreneurship here:

brainly.com/question/13628349

7 0
2 years ago
A corn farmer is considered a ________ if he chooses not to join the national interest group his fellow farmers created, yet sti
muminat
A corn farmer is considered a free rider if he chooses not to join the national interest group his fellow farmers created, yet still reaps the benefits of the tax incentives the group lobbied for and won. 
The free rider problem is an economic concept of a market failure that occurs when people or individuals are benefiting from resources, goods or services that they do not pay for. In our case, the corn farmer is benefiting from the tax incentives the group lobbied for, yet he or she made zero input or effort to contribute to the groups agenda in getting tax incentives. <span />
7 0
3 years ago
​(Related to Checkpoint​ 18.2) ​(Estimating the cost of bank​ credit) Paymaster Enterprises has arranged to finance its seasonal
CaHeK987 [17]

Answer:

answer for the question:

​(Related to Checkpoint​ 18.2) ​(Estimating the cost of bank​ credit) Paymaster Enterprises has arranged to finance its seasonal​ working-capital needs with a​ short-term bank loan. The loan will carry a rate of 13 percent per annum with interest paid in advance​ (discounted). In​ addition, Paymaster must maintain a minimum demand deposit with the bank of 10 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow ​$90 comma 000 for a period of 2 ​months, what is the annualized cost of the bank​ loan?

is given in the attachment.

Explanation:

7 0
3 years ago
The Anson Jackson Court (AJC) currently has $150,000 market value (and book value) of perpetual debt outstanding carrying a coup
ch4aika [34]

Answer:

d. $750,000; 8.9%

Explanation:

The computation is shown below:

A. Current Total Market Value          

Current market value of debt $150,000         The  Current market value of equity $600,000 (10,000 shares × $60)      Market Value  $750,000        

B. Weighted Average Cost of Capital (WACC)         WACC = {Equity ÷ (Equity + Debt) × Cost of Equity} + {Debt ÷ ( Equity + Debt ) × Cost of Debt × (1 - 25%)}

= {$600,000 ÷ ($600,000 + $150,000) × 10%}  + {$150,000 ÷ ($600,000 + $150,000) × 6% × 0.75}  

= ($600,000 ÷ $750,000) × 10% + ($150,000 ÷ $750,000) × 6% × 0.75            = 0.08 + 0.009          

= 8.90%          

Hence, the correct option is D. $7,50,000 ; 8.90%        

3 0
3 years ago
What is your assessment of the strength of competitive pressures stemming from the threat of entry of new competitors into the N
djyliett [7]

Incomplete question. Assumed you are referring to this article;

Six years after turning the leadership of Costco Wholesale over to the then- president, Craig Jelinek, Jim Sinegal, Costco’s co-founder and chief executive officer (CEO) from 1983 until year-end 2011, had ample reason to be pleased with the company’s ongoing revenue growth and competitive standing as one of the world’s biggest and best consumer goods merchandisers. Sinegal had been the driving force behind Costco’s 35-year evolution from a startup entrepreneurial venture into the largest retailer in the United States, the seventh-largest retailer in the world, and the undisputed leader of the discounted warehouse and wholesale club segment of the North America retailing industry. Since January 2012, when Craig Jelinek took reins as Costco Wholesale’s president and CEO, the company had prospered growing from annual revenue of $89 billion and 598 membership warehouse at year-end fiscal 2011 to annual revenues of $126.2 billion and 741 membership warehouse at year-end fiscal 2017. Costco’s growth continued in the first nine months of fiscal 2018. 9-month revenue was $95.0 billion, up 12.0 percent over 9 months of fiscal 2017, and the company had opened four additional warehouses. As of June 2018, Costco ranked as the second-largest retailer in both the United States and the world.

<u>Explanation:</u>

Note, the threat arising from new competitors into a particular market refers to the likelihood that this company or business would overtake existing ones in their market share.

However, <em>recall </em>that we are told that Costco has been in the business for up to 35 years, and has become "the undisputed leader of the discounted warehouse and wholesale club segment of the North America retailing industry," this fact alone makes us and the new competitors weary of how difficult to acquire part of the market. This thus puts Costco at a competitive advantage.

4 0
2 years ago
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