O

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs. Which aspect of financ

LekaFEV [45]

It is <span>C. Managing Risk
</span>

8 0

3 years ago

Read 2 more answers

Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increa

Dafna1 [17]

Answer:

a) Incremental income after taxes:

•Additional sales--------------$156,000

•Accounts uncollectible

(5% of $156,000)-------------$7,800

• Annal revenue increment

(Ad sales-acts colectible)--$148,200

• Collection costs

(5% of $156,000)-----------------$7,800

• Production & selling costs

(73% of $156,000)-------------$113,880

• Annual income before tax

(Annual incremental rev -

Collection costs-prod.&sell

Costs)------------------------------$26,520

• Taxes at 20% -----------------$5,304

• Incremental income after

tax-----------------------------------$21,216

b) Incremental income on sales =

Incremental income/Incremental sales.

= (21216/156000)*100

= 13.60%

c) Receivable turnover =

Sales/Receivable

Receivables =

sales/receivable turnover

= 156000/3 = $52000

Based on the new average, incremental return will be:

(21216/52000) * 100

= 40.80%

4 0

3 years ago

Allocating common fixed expenses to business segments: Multiple Choice may cause managers to erroneously keep business segments

Anna007 [38]

Answer:

ensures that all costs are covered

Explanation:

Common fixed expenses is support the operation of many segments. It is not visible in whole segment or in the part of any segment.

Allocating common fixed expenses to business segments may reason the managers to wrongly terminated business segments because it’s artificially increases each segment of break even point. Even after discontinuation of common fixed expenses, it will happen continuously.

So According to the analysis, option (C) is correct.

4 0

3 years ago

The standard materials cost to produce one unit of Product M is 6 pounds of material at a standard price of $50 per pound. In ma

umka21 [38]

Answer:

$3,000 favorable.

Explanation:

The computation of the total direct material cost variance is shown below:

= Material price variance + material quantity variance

where,

The material price variance would be

= Actual Quantity × (Standard Price - Actual Price)

= 47,000 pounds × ($50 - $51)

= 47,000 pounds × $1

= $47,000 unfavorable

And, the material quantity variance would be

= Standard Price × (Standard Quantity - Actual Quantity)

= $50 × (6 pounds × 8,000 units - 47,000 pounds)

= $50 × (48,000 pounds - 47,000 pounds)

= $50 × 1,000 pounds

= $50,000 favorable

So, the total direct material cost variance would be

= $50,000 favorable - $47,000 favorable

= $3,000 favorable

7 0

3 years ago

Stanley has held the same job for several years, and though he has had quite a bit of success and makes a very good salary, he h

olasank [31]

Answer:

Deceleration stage

Explanation:

Stanley has held the same job for several years, and though he has had quite a bit of success and makes a very good salary, he has begun to disengage from his work. He is less emotionally involved, and feels like he should start thinking about retirement. According to the career development theory, Stanley is in the deceleration stage.

8 0

3 years ago