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3 years ago

Use the following to answer the questions.

Business

1 answer:

-BARSIC- [3]3 years ago

3 0

Answer:

B. just-in-time

Explanation:

Just in time (JIT) is an inventory management approach that is used by companies that want to reduce their inventory costs and they purchase their materials in smaller quantities whenever their productive system needs them. The goal is to keep the lowest possible inventory levels.

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Allstar Exposure designs and sells advertising services to small, relatively unknown companies. Last month, Allstar had sales co

Mariana [72]

Answer:

1. Prepare an income statement for Allstar for the past month.

The income statement is given below.

Sales $ 410,000

Commission Cost ($ 50,000)

Technology Cost ($ 75,000)

R/D Cost* ($ 200,000)

Selling expenses ($ 10,000)

Admin expenses ($ 35,000)

Net profit $ 40,000

* In absence of information it is assumed that research and development costs of $200,000 meet defination of expense as per accounting standard (IAS 38).

2. Briefly explain why Allstar's income statement has no line for cost of goods sold.

As per question Allstars is a service oriented company. In services oriented company there is no good that company is manufacturing and selling. So there will not be any cost of good sold line item in income statement.

6 0

3 years ago

Read 2 more answers

uppose the annual demand function for the Honda Accord is Qd = 430 – 10 PA + 10 PC – 10 PGwhere PA and PC are the prices of the

emmainna [20.7K]

Answer:

Qd = 400 units

elasticity of demand of the Accord with respect to the price of Camry = 0.5

elasticity with respect to the price of gasoline = -0.075

Explanation:

Solution:

The annual demand function for the Honda Accord is:

Qd = 430 – 10 PA + 10 PC – 10 PG

Where,

PA = Price of Honda Accord

PC = Price of Honda Camry

PG = Price of Gasoline per gallon.

Selling Price of both cars = $20,000

Fuel Cost = $3 per gallon.

a) Elasticity of Demand of the Accord with respect to the price of Camry.

First, we need to calculate the number of units demanded.

Qd = 430 – 10 PA + 10 PC – 10 PG

Qd = 430 – 10 (20) + 10 (20) – 10 (3.00)

Qd = 430 - 200 + 200 - 30

Qd = 430 - 30

Qd = 400 units

Cross-price elasticity of the Accord with respect to the price of the Camry will be:

Cross Price = (dQd/dPC) x (PC)/(Qd)

dQd/dPC = 10

PC = 20

Qd = 400

So,

Cross Price = 10* 20/400

Cross Price = 0.5

b) Elasticity with respect to the price of gasoline?

Elasticity = (dQd/dPG)*(PG/Qd)

dQd/dPG = -10

PG = 20

Qd = 400

Elasticity = (-10)*(3/400)

Elasticity = -0.075

5 0

3 years ago

Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market du

anzhelika [568]

Answer:

cost of capital 16%

Explanation:

SML formula:

$Ke= r_f + \beta (r_m-r_f)\\\\Where:\\r_f =$ risk free rate\\r_m= $ market rate\\\beta =non-diversifiable \:risk$

r_f = 3%

β = 1.3

r_m = 13%

0.03 + 1.3(0.13-0.03)

firm's required return = .16 = 16%

4 0

3 years ago

A one-year call option contract on Cheesy Poofs Co. stock sells for $1,330. In one year, the stock will be worth $65 or $86 per

givi [52]

Answer:

$98.02

Explanation:

Data provided in the question:

Value of contract = $1,330

Maximum value = $86

Minimum value = $65

Exercise price = $78

Risk-free rate = 3%

Now,

Current value of stock = $(\frac{\text{Maximum value-Minimum value}}{\text{Maximum value-Exercise price}}\times\text{Call price})+(\frac{\text{Maximum value }}{\text{1+Risk-free rate}})$

also,

a standard contract has 100 shares

thus,

Call price = Value of contract ÷ 100 shares

Call price = $1,330 ÷ 100 = $13.30

Thus,

Current value of stock = $(\frac{\text{86-65}}{\text{86-78}}\times\text{13.30})+(\frac{\text{86}}{\text{1+0.03}})$

Current value of stock = ( 2.625 × $13.30 ) + $63.1068

= $98.0193 ≈ $98.02

6 0

3 years ago

Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market s

posledela

Answer: d. both Iris and Daphne will want to purchase Joss's services but Joss will not be willing to undertake the job.

Explanation:

Iris will want Joss's services but they will be unable to afford them as Iris is only willing to pay $500 whereas Joss wants $1,200 for the job.

The same goes for Daphne who is only willing to pay $800.

Both of them will therefore want to hire Joss but will be unable to.

Joss could however charge both of them their willingness to pay and then sum the cash up and give them both the research whilst still making a profit.

6 0

2 years ago