Utilitarianism is a personal moral philosophy which id being used in this scenario.
<h3>What is Utilitarianism?</h3>
This is the morality that advocates actions that foster happiness or pleasure and maximizes wellbeing of individuals.
The manager believing that the benefits of a choice exceed the costs is ethicalk as result of her having more profit which will maximize the company' wellbeing.
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Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
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Answer:
The correct answer is letter "B": A listing of components, their descriptions, and the quantities of each required to make one unit of a product.
Explanation:
A Bill of Material (BOM) in Materials Requirement Planning (MRP) relates the final product with the raw materials, assemblies, parts, and components necessary to manufacture a unit of that good. The BOM is a document that itemizes all the resources necessary to produce a good including at the top the product itself and a listing in hierarchical orders from components to individual materials.
Creating an accurate BOM helps to have all the material necessary for production available.
Answer: Kathleen
Explanation:
English Rule is that it does not matter about anyone else in the case. So long as John owes money to Kathleen, then Kathleen is the one who can claim the money.
Answer:
Effect on income= $4,500 increase
Explanation:
Giving the following information:
Special offer: 9,000 units of product S51 for $20.50 a unit.
Direct materials $ 3.10
Direct labor 1.50
Variable overhead 6.40
The customer would like modifications made to product S51 that would increase the variable costs by $5.00 per unit and that would require an investment of $36,000 in special molds that would have no salvage value.
<u>Because it is a special offer, we will not have into account the fixed costs.</u>
Unitary variable cost= 3.1 + 1.5 + 6.4 + 5= $16
Investment= 36,000
Effect on income= 9,000* (20.5 - 16) - 36,000
Effect on income= 40,500 - 36,000
Effect on income= $4,500 increase