Answer:
$6,000 incremental cost
Explanation:
Manufacturing the widgets in-house would be a more cost effective method than buying from Bowden Company.
Direct Costs relating to in-house manufacturing (of 100,000 units) are as follows:
Direct material = $31,000
Direct labour = $29,000
Manufacturing overhead directly related to the manufacture of the widgets: $16,000.
Therefore, total direct costs = $76,000.
Only the portion of manufacturing overhead directly affected by the widget production needs to be account for. This is because manufacturing overhead will be incurred irrespective of whether Mallory Company produces the widget or not. Therefore, manufacturing overhead is not an incremental cost incurred by the widget production, except for the portion directly affected.
Accordingly, producing in-house ($76,000 direct cost) is more cost effective that buying from Bowden Company ($82,000) by $6,000.
The incremental cost if the widgets are bought instead of made is therefore $6,000.
Answer: 3.47 years
Explanation:
Payback Period on an investment can be calculated as:
= Cost of investment / Net annual cash inflow
The internal rate of return is the rate that equates the Cost of investment to the annual net cash inflow. This means that if you were to solve for the IRR factor, the formula would be:
= Cost of investment /Net annual cash inflow
Notice how the formulas are the same.
The factor for IRR is therefore the Payback period.
Using your Present value of an Annuity Factor table therefore, find the Factor for the IRR rate of 6% and 4 years.
= 3.4651
= 3.47 years
Question:
If an organization tracks its strategy implementation, looks for problem areas, evaluates whether the problem areas indicate any weakness in the strategy, and makes any necessary changes, then it is using:
A) Organizational controls
B) Tactical controls
C) Behavioral controls
D) Strategic controls
Answer:
The correct option is D) Strategic controls
Explanation:
Strategic controls refer to the process which helps one to easily and immediately change direction where if proposed strategies do not create anticipated results.
For example, if a company X, decides to reduce prices to drive sales and increase market share albeit, at a cost to its bottom line, where there is no increase in sales, an effective strategic control process would be to quickly reverse the situation to the status quo before implementation and thereafter go back to the drawing table to check why demand is low.
Demand could be weak because, quality of products, or services, do not meet consumer expectations, it could be that there is a violation of one of the 'P' of marketing such as Positioning.
The head of strategy thus reviews and plans the next move to ensure that changes are effected.
Cheers!
Answer:
C. 8%
Explanation:
Future value factor:
= $18527.74 / $40000
= 0.4631935
At 8% for 10 years the future value factor is 0.4631935
Note: Proof of calculation is attached below as picture
I think the answer is Offering free $10 gift for every new plan, generating 40 new plans per day.