Answer:
The total amount of expenses that should be allocated towards drilling is $35,360.
Explanation:
We have been given three categories of office expenses -
SALARY = $34,000
DEPRECIATION = $22,000
ADVERTISING = $42,000
and we have to calculate the expenses allocated to drilling departments, so we will allocate from each of the three given expenses the proportion of expenses which belong to drilling department.
SALARY = $34,000 X Number of employees in drilling / total number of
employees
= $34,000 x 600 / 2000
= $10,200
DEPRECIATION = $22,000 X Cost of goods sold for drilling / total cost of
goods sold
= $22,000 x $83,600 / $220,000
= $8,360
ADVERTISING = $42,000 X Net sales from drilling / total net sales
= $42,000 x 328,000 / $820,000
= $ 16,800
TOTAL DRILLING EXPENSES = $10,200 + $8360 + $16,800
= $35,360
Answer:
Explanation:
a.)
Using Financial calculator, enter the following CFs to find NPV;
CF0 = -1,800,000
C01 =600,000
C02 =600,000
C03 =600,000
C04= 600,000
C05 = 600,000
Interest rate ( I ) = 8%
CPT NPV = $595,626.02
b.)
Profitability Index (PI)
<em>PI= NPV of cash inflows / Initial outlay</em>
Using Financial calculator, enter the following CFs;
Find the NPV of the expected future cash inflows;
CF0 = 0
C01 =600,000
C02 =600,000
C03 =600,000
C04= 600,000
C05 = 600,000
Interest rate ( I ) = 8%
NPV = $2,395,626.02
PI = $2,395,626.02/1,800,000 = 1.331
c.)
You can use a Financial calculator to find the IRR;
CF0 = -1,800,000
C01 =600,000
C02 =600,000
C03 =600,000
C04= 600,000
C05 = 600,000
CPT IRR = 19.86%
d.)
Based on the NPV rule, a company should accept a project if the NPV is greater than 0. This project's NPV of $595,626.02 meets this criteria , therefore, the project should be accepted.
Based on IRR rule, a company should accept a project if the IRR of the project is greater than the cost of capital; which is also the required return. The IRR of this project is 19.86% which is significantly higher than the cost of capital of 8% hence in agreement that the project should be accepted. The Profitability Index is also greater than 1 hence the project should be accepted.
Answer:
The reasons behind the given circumstances are described in the subsection below.
Explanation:
- It's much more versatile than a Study on Funnel Simulation. This helps demonstrate pedestrian traffic throughout marketing funnel whenever an organization produces it for business marketing.
- It shows the rate of transformation in the funnel through each step.
- This includes specialized components that aid in evaluating the concept of success or the worst conversion platform as well as marketing.
- But it does have one advantage regarding Funnel visualization reporting that it helps in evaluating past data while the funnel visualization report mostly enables future data.
Answer:
<u> Reportable Segments </u>
(a) Revenue test. W and Y
(b) Operating profit (loss) test. W, X and Y
(c) Identifiable assets test. W and X
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now given as follows:
Note: See the attached excel file for the determination of the operating segments which are reportable (in bold red color).
Note that the criterion is that a segment is reportable if it contains an amount that is greater than 10% of the total amount. Otherwise, it is nonreportable.
Based on this criterion, we have the following from the attached excel file:
<u> Reportable Segments </u>
(a) Revenue test. W and Y
(b) Operating profit (loss) test. W, X and Y
(c) Identifiable assets test. W and X
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark">
xlsx
</span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark">
pdf
</span>
4500 + 750 + 850 + 6250 = 13,350 totally amount
