Answer:
C. skimming
Explanation:
Based on the information provided it is safe to say that by setting the price at $12,700 Xerox used a skimming pricing strategy. This is a pricing strategy in which the firm/company places their new product in the market with the highest price they can give it and go slowly lowering the price as time goes on. This is mostly done with brand new, one of a kind products that do not have competition, like the portable fax machine that Xerox designed.
Answer:
Longard Corp.
The money that Longard Corp. receives is:
= $75 million.
Explanation:
a) Data and Calculations:
Number of shares issued = 5 million
Investment bank underwriter pays per share to Longard Corp = $15
Stock price to the public = $20 per share
Total amount received from the underwriter = $75 million ($15 * 5 million)
b) The calculations show that the investment bank will eventually receive $100 million ($20 * 5 million) from the public offer. It then charges $5 per share (representing a total underwriting fee of $25 million). This is why it remits only $75 million to Longard Corp.
Answer: 2.91 years
Explanation:
The discounted payback period calculates how long it takes for the cummulative discounted cash flow to equal the amount invested.
Please check the attached image for the table explaining how the answer was gotten.
Answer:
E. January 1, 2017
Explanation:
Financial statements are prepared showing at least two years for the sake of comparability.
It will be important for the company in presenting its financial statement using the IFRS for the year ended December 31st 2018 to show the financial statements for the year ended 31st December 2017 as if it had always applied the IFRS.
The basic idea is to show in the financial statements the effects of adopting the IFRS from a preceding period in order for the entity to show the financial statement for 2017 and 2018 and be able to compare them having been prepared on the same basis.
Thus, the transition date will be the beginning of the preceding period when the IFRS was applied (1st Jan. 2017 oe 31st Dec. 2016).
I hope this explanation makes the concept easy to grasp.
Thank you.
Answer:
$664,000
Explanation:
The computation of the budgeted total manufacturing cost is shown below:
Budgeted total manufacturing costs is
= Fixed cost + Variable cost
= $24,000 + ($16 × 40,000 linear feet of block)
= $24,000 + $640,000
= $664,000
We simply added the fixed cost and the variable cost so that the total budgeted manufacturing cost could come
