Supply is the consumer’s want or need for a product or service True True False

Pizza International, Inc., reported the following information (in thousands): Operating Activities Net Income $ 236 Depreciation

Aleks04 [339]

Answer:

$22,640

The explanation is shown below:-

Explanation:

The computation of cash flow from operating activities using the direct method is shown below:-

Direct method

Pizza International, Inc.

Statement of cash inflow

Cash flow from operating expenses

Cash received from customers $143,777

($143,951 - $174)

Cash Paid

To suppliers ($53,773)

($45,700 - $651 + $8,724)

To salaries and wages ($56,855)

For office expenses ($7,730)

($7,785 + $668 - $723)

For income tax expenses ($2,779)

($50 + $2,729)

Net cash inflow from operating

activities $22,640

It is mainly due to no depreciation expenses for cash products. Depreciation expenses do not contribute to cash outflows. Because of which company has reported large cash inflow from operations compared to near net loss.

3 0

4 years ago

Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supp

sergiy2304 [10]

Answer:

Manson Industries

The total cost savings that Manson will realize by buying the assembly part instead of making it is:

($14,700), showing that more costs will be incurred.

Explanation:

a) Data and Calculations:

Make Buy

Variable cost per unit $5 $6

Fixed cost per unit 2 2

Total cost per unit $7 $8

Total units required 14,700 14,700

Total costs $102,900 $117,600

Cost saving = ($14,700)

b) Based on the above calculations, it benefits Manson more to produce the part internally than to buy from an outside supplier. There is a cost difference of $1 because the fixed costs will still be incurred whatever decision is taken.

4 0

3 years ago

NCH Corporation, which markets cleaning chemicals, insecticides and other products, paid dividends of $2.00 per share in 1993 on

sashaice [31]

Answer:

The reutrn on equity should be of 9.53%

Explanation:

We can solve the return on equity by considering the gordon model of dividend growth:

$\frac{divends_1}{return_{equity}-growth} = Intrinsic \: Value$

current dividends 2 dollars

next year dividends: current x (1 + g) = 2 x (1 + 0.06) = 2.12

$\frac{2.12}{return_{equity}-0.06} = 60$

$\frac{2.12}{60} +0.06= Ke$

Ke = 0.09533 = 9.53%

4 0

3 years ago

You are the manager of a firm that manufactures front and rear windshields for the automobile industry. Due to economies of scal

Leya [2.2K]

Answer:

a. The optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0)

b. Yes, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because $\pi ^{Cheat}$ > $\pi ^{Cooperate}$ .

Explanation:

a. Determine your optimal pricing strategy if you and your rival believe that the new Highlander is a "special edition" that will be sold only for one year.

Note: See the attached excel file for the Representation of one shot normal for of the game played between "You" and "Your Rival" together with the payoffs.

From the attached excel file, the dominant strategy is for “You” and “Your Rival” to charge “Low Price” each. If the dominant strategy is played by “You” and “Your Rival”, the optimal pricing strategy will be one-shot Nash equilibrium in which “You” charge low price, “Your Rival” charge low price and then the payoff is ($0, $0).

b. Would your answer differ if you and your rival were required to resubmit price quotes year after year and if, in any given year, there was a 60 percent chance that Toyota would discontinue the Highlander? Explain.

When we have a year-after-year competition between “You” and “Your Rival” but with a 60 percent chance that Toyota would discontinue the Highlander, the payoffs of the firm that continue to comply with the collusive strategy of charging “High Price” by each firm under the normal trigger strategy whereby “You” and “Your Rival” agree to charge high price as long as there is no past deviation by any of the firm, otherwise charge a low price is as follows:

$\pi ^{Cooperate}$ = $6 + $6(100% - 60%) + $6(100% - 60%)^2 + 6(100% - 60%)^2 …….

$\pi ^{Cooperate}$ = $6 / 6% = $10

Therefore, what the firm that cheats earn today is $11 million and it earns $0 forever. The implication of this is that $\pi ^{Cheat}$ = $11

Therefore, the anwer will differ becuase it is not possible to sustain the collusive outcome as a Nash equilibrium because $\pi ^{Cheat}$ > $\pi ^{Cooperate}$ .

Download xlsx

7 0

3 years ago

Building a new mall what will be the input, the conversion, and the output

myrzilka [38]

In building a new mall,

The input would be : Labor, All materials needed in building a mall

Conversion : Building process

Output : The actual mall itself

hope this helps

6 0

3 years ago