Answer:
Option A
Explanation:
In simple words, business model refers to the strategy for creating a profit for a product. This defines the goods or services that the company is trying to offer, the intended audience that it has defined as well as the costs it plans.
A creative technology company must include a business plan, if only to draw funding, help it retain talent, and inspire leaders and managers. Established companies frequently have to review and revise their operating strategies, or struggle to predict emerging developments and obstacles. Investors will study and analyse the corporate strategies of all businesses that are involved in them.
Choosing a development procedure for growth is not really a part of a business framework, but a point of performance of the growth model. Other choices specifically address which kind of goods should be selected in a company with which specific market group and how you'd like to benefit from your package's particular quality.
Answer:
a) The volume of output at which both the locations have the same profit is 140
Explanation:
We are looking for the quantity produced that give us the same profit.
First we have to get the equation of profit in both location.
Profit function
P(x) =Revenue- Total cost P(x) =(Px * Q)-(FC + vc*Q)
Where
FC=Fixed cost
vc=unitary variable cos
Q=produce quantity
Px=Price
Q=produce quantity
<u>Bonham Profit</u>
P(x) =(Px * Q)-(FC + vc*Q)
P(x) =(29000 * Q)-(820000 + 13000*Q)
<u>McKinney Profit</u>
P(x) =(29000 * Q)-(960000 + 12000*Q)
To find the Q where both profit are equal
(29000 * Q)-(820000 + 13000*Q)=(29000 * Q)-(960000 + 12000*Q)
29000 * Q-820000 -13000*Q=29000 * Q-960000 - 12000*Q
We put all the numbers multiple by Q in the same term
29000 * Q-29000* Q -13000*Q - 12000*Q=820000 -960000
-1000*Q=-140000
Q=140
Answer:
B)$4.25
Explanation:
Predetermined Overhead rate = Estimated Manufacturing overhead / Estimated Machine hours
Predetermined Overhead rate = $68,000 / 16,000 =$4.25 per unit
Machine-hours 16,000
Manufacturing Overhead:
Salary of production supervisor $40,000
Indirect material $8,000
Rent on factory equipment <u> $20,000</u>
Total Manufacturing overhead <u>$68,000</u>
Answer:
The answer is: re > rs > WACC > rd.
Explanation:
We can see that the return on equity is greater than return on common stock which is greater than Weighted average cost of capital and return on debt.
For the source of financing, debt will be less cost than others because of the tax effect.
While weighted average cost is decided by return on equity, preferred stock and debt. => It is higher than the cost for debt.
