Answer:
Mergers and acquisitions consist of either joining two or more firms, or having one firm acquire another firm.
The rationale behind a merger or acquisiton is always strategic: a merger or an acquisition is carried out with the goal of improving the economic position and performance of the firms involved.
Some business strategies that can be implemented by a merger or acquisition are:
- Horizontal integration: companies that sell similar products merge in order to join forces and expand their market reach.
- Vertical integration: companies in the same industry, but that sell different products (for example, one company sells cars and the other sells bikes) merge in order to expand their market share.
- Conglomerate formation: companies in different industries join in order to expand their markets even more.
Answer:
It will purchase at the local store at an economic cost of $123
Explanation:
Answer:
It will puchase the skirt across town as it has the less economic cost.
Explanation:
We are going to add up the opportunity cost (lost wages) to the cost of the skirt:
place travel-time Price Cost to travel Economic Cost
local store 30 $ 102.00 $ 21.00 <u> $ 123.00 </u>
across town 60 $ 85.00 $ 42.00 $ 127.00
neighboring city 120 $ 76.00 $ 84.00 $ 160.00
*travel-time we multiple the time it took each eway by 2
**The cost to travle will be Juanitas wages per hour ($42) times the travel-time/ 60
That's because the wages are express in hours and the travel time in minutes so we convert into hours
Then, the economic cost is the sum of the value of the skirt and the lost wages.
<em>Juanita, as a rational consumer will chose to purchase at the lower cost.</em>
Answer:
The correct answer is option b) $367,000
Explanation:
Here for calculating the correct amount of inventory that Horace should report can be calculated through, by adding the inventory worth $320,000 at 31 December, 2015 with consignment given to Herschel worth $47,000, SO
Correct amount of inventory =
Amount of inventory on 31 December
+
Consignment given to Herschel
= $320,000 + $47,000
= $367,000
Here we are taking Herschel consignment in to account and that too at the historical purchase cost because Horace company has give the Herschel to sell the goods on his behalf but the transfer of ownership has not taken place here , the right to ownership here remains with the Horace and the amount at which they should be recorded is at purchase cost not selling cost.
We will also not include goods worth $ 22,000 in to the calculation because the Horace company has not received the goods physically yet, we will include those goods in to inventory on January 3 not before that.
Answer:
$5,598
Explanation:
The computation is shown below:
As we know that
Total assets = fixed assets + current assets
$6,129 = $3,894 + current assets
The current asset is $2,235
Now
net working capital = Current asset - current liabilities
$661 = $2,235 - current liabilities
So, the current liabilities is $1,574
Now the total liabilities is
= Current liabilities + long term liabilities
= $1,574 + $4,024
= $5,598
Hence, the total liabilities is $5,598
Answer:
a. 136.93 units
b. $2,783.60
c. $2,783.63
d. 60 units
Explanation:
a. The computation of the economic order quantity is shown below:
= 136.93 units
b. The annual holding cost is
= Economic order quantity ÷ 2 × holding cost per order
= 136.93 units ÷ 2 × $40
= $2,738.60
c. The annual ordering cost is
= Annual demand ÷ economic order quantity × ordering cost per order
= $2,500 ÷ 136.93 units × $150
= $2,738.63
d. The reorder point is
= Demand × lead time + safety stock
where, Demand equal to
= Expected demand ÷ total number of days in a year
= 2,500 ÷ 250 days
= 10
So, the reorder point would be
= 10 × 6 + $0
= 60 units
We simply applied the above formulas
