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3 years ago

Question 1 (14 points)

Business

1 answer:

Anton [14]3 years ago

6 0

Answer:

a. (6 points) Why would you want to differentiate your product?

Because differentiating your product is one of the two basic business strategies, the other one being reducing the price of the product. Differentiating your product allows you to gain competitiveness in a contested market.

b. (8 points) How would you do it? How would your product differ?

An product that can be differentiated is a yogurt. The market for yogurt is very competitive so differentiation is necessary. The yogurt could be flavored in less common ways: like saffron, kiwi or cucumber, and the technique could be adapted from Greek Yogurt to give a healthier style.

a. (5 points) Please explain in detail what this asymmetric information problem, and who is facing it (your firm or your consumers).

The problem of asymmetric information occurs when one party of the transaction has more information than the other party. In a typical business transaction, the managers of the firm have more information than consumers, so consumers would be facing the problem of asymmetric information.

b. (8 points) How do you think the technology that you use, affects the market structure and/or the demand of your product?

Technology can make the market structure more competitive or less, but it usually makes it more competitive. Technology also improves the productiviy and efficiency of the production process, which leads to costs reductions than pass through price. This in turn raises demands for the product.

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Which is a man-made resource?Andrea lost her job as an accountant because her company gave the contract for keeping accounts to

MAXImum [283]

Coal is the man main resource

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3 years ago

When XYZ firm entered the market for good A two years back, it kept the price of its product low to attract customers away from

Sholpan [36]

Answer:

The correct answer is the option (C).

Explanation:

According to Timothy Walters, if price increases by $1 from $6 to $7 then quantity demanded will reduce from 1,200 units to 900 units.

This will lead to decrease in total revenue from (1,200 * $6) $7,200 to (900 * $7) $6,300.

According to Jack Mayers, if price increases by $1 from $6 to $7 then quantity demanded will reduce from 1,200 units to 950 units.

This will lead to decrease in total revenue from (1,200 * $6) $7,200 to (950 * $7) $6,650.

It can be seen that with increase in price, total revenue is decreasing in both cases. This happens when demand is elastic.

So,

Timothy and Jack will most likely to agree that the demand for good A is elastic.

Hence, the correct answer is the option (C).

3 0

3 years ago

Ahmed Company purchases all merchandise on credit. It recently budgeted the month-end accounts payable balances and merchandise

Ainat [17]

Answer:

Ahmed Company

a. Computation of the budgeted merchandise purchases:

May June July August

Cash payments $1,400,000 1,550,000 1,400,000 1,500,000

Ending balance 150,000 130,000 300,000 120,000

Total $1,550,000 $1,680,000 $1,700,000 $1,620,000

less:

Beginning balance 150,000 130,000 300,000

Purchases $1,550,000 $1,530,000 $1,570,000 $1,320,000

b. Computation of the budgeted cost of goods sold:

May June July August

Beginning Inventory 260,000 500,000 300,000

Purchases 1,550,000 1,530,000 1,570,000 1,320,000

Goods available for sale 1,550,000 1,790,000 2,070,000 1,620,000

Ending Inventory 260,000 500,000 300,000 330,000

Cost of goods sold $1,290,000 $1,290,000 $1,770,000 $1,290,000

Explanation:

a) Data and Calculations:

Accounts Payable Merchandise Inventory

31-May 150,000 260,000

30-Jun 130,000 500,000

31-Jul 300,000 300,000

31-Aug 120,000 330,000

b) Ahmed Company's purchases of merchandise can be obtained by reviewing the Accounts Payable beginning and ending balances and the cash payments made during the months. Alternatively, monthly Accounts Payable can be prepared and the differences in the debit and credit side will be the purchases as the missing figure.

c) Once the purchases of merchandise have been computed, to compute the cost of goods sold becomes easier. The cost of goods sold for Ahmed Company is the difference between the cost of goods available for sale and the ending inventories of merchandise.

8 0

3 years ago

Sierra Co. has provided the following information: Work in Process: Feb 1 25,000 units (100% complete for materials, 60% complet

Artemon [7]

Answer:

The answers are as follows:

a. 90, 000 units

b. Materials: 105,000; Conversion: 93,000

c. Materials: $1.4762; Conversion: $2.9785 (rounded to 4 decimal places)

d. $ 400,922 (rounded to whole dollar amount)

e. $31, 078 (rounded to whole dollar amount)

Explanation:

Work in process valuation entails calculating the value of goods which are started and completed during the period plus the value of goods which are not yet completed but have been started during the current period. In order to calculate the required, the following abbreviations will be employed:

Op.Wip is the value of the opening inventory

Current is the total cost of production in the current period

Total C is the total cost of production incurred during the current period including opening inventory

Comp. U is the quantity of completed units in the current period

WIP eq.U is the equivalent units of production for the current period. Equivalent units are the number of units that are computed for partially completed units of production.

Total eq.U is the total quantity of units produced including equivalent units (completed units plus equivalent units)

CPU is the cost per unit of production for materials as well as conversion costs

Mat represents materials and CC represents conversion costs

Part 1

$ $ $ $ $ $

Op. Wip Current Total C Comp. U WIP eq.U Total eq.U

Mat 35,000 120,000 155,000 90,000 15,000 105,000

CC 43,000 234,000 277,000 90,000 3,000 93,000

78,000 432000

Equivalent units: Materials (15,[email protected]% completion = 15,000 units); Conversion (15,[email protected]% completion = 3,000 units)

Cost Per Unit (CPU):

Materials cost: $1.476* ($155,000/105,000 units)

Conversion cost: $2.978** ($277,000/93,000 units)

Total CPU: $4.454** ($1.476 + $2.978)

*1.476190476

**2.978494624

***4.4546851

Part 2:

Work in Process: $

Materials: (15000 units * 1.476190476) 22,142.85714

Conversion Costs: (3000 units * 2.978494624) 8935.483871

Completed units: (90,000 units * 4.4546851) 400,921.659

 432, 000 

3 0

4 years ago

The following information is available for Wonderway, Inc., for 2015:

Temka [501]

Answer: See explanation

Explanation:

a. Calculate the direct labor cost for Wonderway.

This will be the wages paid to laborers which is $84,000.

b. Calculate the manufacturing overhead cost for Wonderway.

Factory rent = $29,600

Add: Indirect production labor = $1,860

Add: Utilities for factory = $30,100

Add: Production supervisor's salary = $30,800

Add: Factory insurance = $12,200

Add: Depreciation on factory equipment = $26,600

Manufacturing overhead cost = $131160.

c. Calculate the prime cost for Wonderway.

Direct materials used = $36,200

Add: Wages = $84,000

Prime cost = $36200 + $84000 = $120200

d. Calculate the conversion cost for Wonderway.

Wages paid to laborers = $84,000

Add: Manufacturing overhead = $131160

Conversion cost = $215160

e. Calculate the total manufacturing cost for Wonderway.

Direct materials used = $36,200

Add: Wages paid to laborers = $84,000

Add: Manufacturing overhead = $131160

Total manufacturing cost = $251360

f. Calculate the period expenses for Wonderway.

Company advertising = $20,700

President's salary = $62,000

Add: Depreciation= $8,180

Add: Sales commissions = $7,700

Period cost = $98580

8 0

3 years ago