Answer:
Profit = $<u>8,670</u>
Explanation
<em>A flexible budget is that prepare for the actual activity level achieved using the assumptions of the static budget. </em>
<em>So we will prepare a flexible budget for 88 jobs using the assumptions of the</em> <em>budget for 90 jobs</em>
Crimson Test Corporation
FLEXIBLE BUDGET
$
Explanation:
Revenue (88× $350) 30,800
Technical wages ( 88× $15)+8000 9320
Mobile operating (88×$30) +(3000 5640
Office expenses (88 × $10) + 2,000 2880
Advertising 1000
Insurance 1,650
Miscellaneous (88 × $5) + 1200 <u> 1,640</u>
Total expenditure <u>(22,130)</u>
Profit <u>8,670</u>
Answer: A. The internal rate of return is expressed as a percent rather than the absolute dollar value of present value.
Explanation:
The internal rate of return is used in calculating the rate of return for the investment of a company. During the calculation, external factors like cost of capital, inflation, risk free rate are all excluded.
The internal rate of return method is not subject to the limitations of the net present value method when comparing projects with different amounts invested because it's expressed as a percent rather than the absolute dollar value of present value..
Answer:
I believe it's C. Consumer
Explanation:
Answer:
1. What must the shareholders prove to recover?
The shareholders say that the Board of Directors had given Ovitz more as written in Employment Agreement. Ovitz had more incentives & other facilities as compared to other employees.
And that is unfair with the other employees. Because of this the shareholders had filed a complaint against the company about the remuneration of O.
2. What does the court say is the relationship between good corporate governance, liability, and business judgment?
The court has to decide that whether the Board of directors should be responsible for the decision-making process and wasting corporate assets or they have power and authority to do anything they want.
Rules of corporate governance of any company are mentioned in their terms and conditions and in this case the Board goes beyond the requirements and because of this liability of company will also increase.
3. What alternatives to litigation do shareholders have?
They have many alternatives;
1) Negotiation with the Directors
2) Dealing with small claims electronically.
3) Through Discussion
4) Involvement of some mediator
Answer:
Both increases
Explanation:
Suppose a person initially produces and sell some amount of milkshakes with the available resources.
But, if he will be able to produce and sell more quantity of milkshakes with the same level of resources then this will indicates that there is a rise in the productivity of this person and if the number of milkshakes sold increases then as a result profits increases at a same price level.
For Example:
Case 1:
Initially,
Person producing and selling = 20 units of milkshakes at a selling price of $10 each and cost of inputs used in the production = $50
Therefore, Profits = Total revenue - Total cost
= (20 units × $10 each) - $50
= $200 - $50
= $150
Case 2:
Now, we assumed that there is an increase in the productivity of this person. Cost of production and selling price of each milkshake remains the same.
Person producing and selling = 40 units of milkshakes at a selling price of $10 each and cost of inputs used in the production = $50
Therefore, Profits = Total revenue - Total cost
= (40 units × $10 each) - $50
= $400 - $50
= $350
Hence, there is an increase in the profits from $150 to $350.
