I think that the answer would be 30% of the fixed costs for $60,300 plus $3800=64,100 ie including the loss which would be saved if the mountain bike business was eliminated. The $3800 represents the operating loss for the mountain bike business.
Answer:
a. Current ratio = Total current assets / Total current liabilities = $366 / $226 = 1.62 to 1
b. Average receivable = (Beginning receivables + Ending receivables) / 2 = ($156 + $160) / 2 = $158
Average collection period = Number of days in year / Credit sales * Average accounts receivable = 365 / $1,702 * $158 = 33.88 days
c. Average Stockholder's equity = (Beginning equity + Ending equity) / 2 = ($500 + $550) / 2 = $525
Return on stockholder's equity = Net income / Average stockholder's equity = $112 / $525 = 21.33%
d. Earnings per share = Net income / Common shares outstanding = $112 / 46 = $2.43 per share
Price earnings ratio = Market price per share / Earnings per share = $50 / $2.43 = 20.58 times
e. Dividends per share = Dividends / Common shares outstanding = $92 / 46 = $2.00 per share
Dividend yield ratio = Dividend per share / Market price per share = $2.00 / $50 = 4.00%
Workings
Beginning retained earnings $346
Add: Net income $112
Less: Ending retained earnings -<u>$366</u>
Dividends <u>$92</u>
Answer:
Particulars Amount
1. Revenue allocated to the equipment $330
for each bundled sales
{$990 * $280 / $280 + $560}
2. Revenue allocated to the service $660
for each bundled sales
{$990 * $560 / $280 + $560}
3. Sales revenue to be reported in income $660
statement
Service revenue to be reported in $55
income statement
($660/12)
Answer:
The question is missing the below options:
A. loss of identity
B. loss of frequency
C. loss of facility
D. loss of focus
The correct option is D,loss of focus.
Explanation:
Loss of identity does not arise in this case, as Teal Motors Inc. is still responsible for coupling these parts into complete and brands it in own brand name.
Since it is not clear cut that Teal Motors Inc. has in-house facilities to produce the outsourced parts,letting the available production facilities rot away without being put to proper use does not arise.
The focus here is that the company specializes in the critical components that are most important in its automobiles and would prefer to outsource non-critical parts to others,hence a modular approach to manufacturing is favored.
