A volume variance occurs when the company operates at a different capacity level than was expected.

Gabriele Enterprises has bonds on the market making annual payments, with nine years to maturity, a par value of $1,000, and sel

Kazeer [188]

Answer:

7.06%

Explanation:

The computation of the coupon rate is given below:

Given that

FV is $1,000

PV is $978

NPER is 9

RATE is 7.4%

The formula is given below:

=PMT(RATE,NPER,-PV,FV,TYPE)

After applying the above formula, the PMT is $70.57

Now the coupon rate is

= $70.57 ÷ $1,000

= 7.06%

7 0

3 years ago

Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The va

JulijaS [17]

Answer:

Option D

Wales

Explanation:

Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product with the highest contribution per unit of the scare resource

The contribution per unit = selling price - unit variable cost

Bales- 55- 20= 35 per unit

Tales- 78- 50 = 28 per unit

Wales - 32- 15 = 17 per unit

Contribution per hour = contribution per unit/machine hour required

Product Cont/unit machine hr /unit cont/hr Ranking

Bales 35 5 7 2nd

Tales 28 7 4 3rd

Wales 17 1 17 1st

Note that the contribution per machine is arrived as contribution per unit divided machine hours required per product.

3 0

3 years ago

Suppose Nike's managers were considering expanding into producing sports beverages. Why might the company decide to do this unde

lara [203]

Answer:

Te correct answer is the first option: The cost of producing sports beverages along with its current products under the Nike brand name is less than the cost of producing sports beverages under a new brand name plus the cost of producing Nike's current products under the Nike brand name

Explanation:

To begin with, the fact that the managers are looking forward to expand the business and to aggregate sports beverages indicates that the company is doing good in the sales and therefore they have margin to invest in a plan like that. Secondly, the fact that they do it under Nike's name will cost them less than doing it otherwise due the fact that they will not have to pay for a new name and all the registrations and patents that the strategy involves. They will only need to register the new product and even more they would have all the marketing campaign focus on the same audience and will find strength in using the brand and name of Nike for that, in terms of publicity.

4 0

3 years ago

Given the following historical demand, what is the weighted moving average forecast (0.4, 0.3, 0.3) for Week 6?

Roman55 [17]

Answer:

The correct option is B. 9200.

Explanation:

This can simply be answered as follows:

$F_{6} =(D_{5}*W_{5})+(D_{4}*W_{4})+(D_{3}*W_{3})$ .................. (1)

Where:

$F_{6}$ = Weighted moving average forecast (0.4, 0.3, 0.3) for Week 6 = ?

$D_{5}$ = Week 5 demand = 11,000

$D_{4}$ = Week 4 demand = 9,000

$D_{3}$ = Week 3 demand = 7,000

The (0.4, 0.3, 0.3) implies that:

$W_{5}$ = Weight of Week 5 demand = 0.4

$W_{4}$ = Weight of Week 4 demand = 0.3

$W_{3}$ = Weight of Week 3 demand = 0.3

Substituting all the relevant values into equation (1), we have:

$F_{6}$ = (11,000 * 0.40) + (9,000 * 0.30) + (7,000 * 0.30) = 9,200

Therefore, the correct option is B. 9200.

7 0

3 years ago

When it comes to investing, what is the typical relationship between risk and return

Harlamova29_29 [7]

When it comes to investing, the typical relationship between the risks and returns was that the greater the potential risk, the greater the investment return an investor will get. That is why investments are very risky, and an investor must be a risk-taker to attain such success.

8 0

3 years ago

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