Complete question:
When Olga took over as facilities manager for Burlington Furniture Manufacturing, she was shocked to see the factory was still heated with a coal-fired boiler. She made an immediate decision to upgrade the heating system to something more efficient, and began to research available options. For Olga and Burlington Furniture, this represented a(n) ________ situation.']
A. generic buy
B. new buy
C. adapted buy
D. straight rebuy
E. modified rebuy
Answer:
For Olga and Burlington Furniture, this represented a new buy situation.
Explanation:
A new purchase is the first case in which a product is purchased. It is crucial for company suppliers to use their line of goods and lots of data to help the consumer make a good decision in this sort of purchasing situation.
A new buying scenario will take longer as testing, review and buying centre members must take a final decision.
A direct re-buy is typically an automated transaction where a manufacturer has a standing order every week or month for a set quantity of items.
The given statement is true that it is better for businesses to have a 'lower' opportunity cost since it often provides them a with a comparative advantage.
Opportunity costs refer to a relative measure of missing potential benefits from unavailed production opportunities. Whereas the concept of comparative advantage refers to the ability of an economy to produce a specific service or product in a more economically competitive and efficient manner than its trading peers.
Since comparative advantage increases profitability and 'lowers' opportunity costs, the comparative advantage theory suggests that opportunity cost is a factor for analysis in selecting between different options for production. That is the point where comparative advantage is seen from the perspective of opportunity costs as it allows companies to focus on resources, labor, and capital required for production with lower opportunity costs and higher profit margins.
You can learn more about comparative advantage at
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Answer:
Empowerment Inc.
The amount that Empowerment Inc should report as Retained Earnings as of May 1, 2018 is $67,000.
Explanation:
a) Statement of Retained Earnings:
Retained earnings, January 1 $85,000
Net loss (15,000)
Stock dividend (3,000)
Retained earnings, May 1, 2018 $67,000
b) Empowerment Inc. paid a stock dividend of 1,500; thus this additional shares will be valued at $3,000 (1,500 * $2) since the par value is $2. This will increase the Common stock shares outstanding to 11,500 shares to a value of $23,000. The additional $3,000 represents the value of the stock dividend, which reduces the balance of the Retained Earnings.
In addition, Empowerment Inc. incurred a net loss of $15,000. This amount reduces the Retained Earnings.
Answer:
C. 86.17%
Explanation:
The computation of the expected dividend payout ratio is shown below:
Expected dividend pay out ratio = 100 - {(capital budget × equity ratio) ÷ (net income} × 100
= 100 - {($83,000,000 × 30%) ÷ ($180,000,000} × 100
= 100 - (24,900,000 ÷ $180,000,000) × 100
= 100 - 13.83%
= 86.17%
All other information which is given is not relevant. Hence, ignored it