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3 years ago

16. If a business chooses an alternative strategy

Business

1 answer:

Sergio [31]3 years ago

7 0

A. Avoiding Risk

Explanation:

When a company is trying to avoid risks it finds alternative strategies to get a job done when they feel it is viable than taking a risk. This is a defensive option often chosen by firms when they do not see the possible reward being worth the risk in a particular strategy.

When this form of strategies are used in management it means that the company would rather stay stable than go for higher while risking their basic business.

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Raw Materials Inventory, beginning to balance $36,000

lesya692 [45]

Answer:

1. Journal Entry Debit Credit

Raw materials inventory $73,400

($72,000 + $1,400)

Accounts payable $73,400

(Being raw materials purchase on credit)

2. Journal Entry Debit Credit

Work in process $64,300

($64,000 + $300)

Raw materials inventory $64,300

Raw Material Inventory Account

Beginning balance $36,000 | Work in process $64,300

Purchase $73,400 |

| Ending balance $45,100

| ($36,000 + $73,400 - $64,300)

3 0

3 years ago

You plan to save $1,400 for the next four years, beginning now, to pay for a vacation. If you can invest it at 6 percent annuall

vekshin1

Answer:

FV= $6,124.46

Explanation:

Giving the following information:

You plan to save $1,400 for the next four years, beginning now, to pay for a vacation. If you can invest it at 6 percent annually,

Annual deposit= $1,400

Number of periods= 4 years

Interest rate= 6%

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {1,400*[(1.06^4) - 1]} / 0.06

FV= $6,124.46

6 0

3 years ago

Concord Company is involved in producing and selling high-end golf equipment. The company has recently been involved in developi

hoa [83]

Answer:

$8,586,000

Explanation:

market price for Littlelaser $100 per unit

units sold 106,000

total revenue generated by Littlelaser = $100 x 106,000 = $10,600,000

required investment = $8,056,000

since the investors require a return on investment of 25%, then the profits generated by Littlelaser should be:

ROI = net income / total investment

25% x $8,056,00 = net income

net income = $2,014,000

target cost = total revenue - net income = $10,600,000 - $2,014,000 = $8,586,000

total revenue $10,600,000

- total cost $8,596,000

net income $2,014,000

7 0

3 years ago

Fast-food restaurants like McDonald's are replacing cashiers with touch-screen ordering kiosks. Currently the MPL for an additio

docker41 [41]

Answer:

a. Whataburger is not using the optimal cost-minimizaing mix of cashier and kiosks.

b. Whataburger should hire more cashier and rent fewer kiosks in order to improve its mix of inputs and minimize the cost

Explanation:

a. According to the given data we have the following:

Let "C" is a cashier.

"K" is a kiosk

MPC = 48 (Marginal Product of Cashier)

MPK = 32 (Marginal Product of Kiosk)

PC = $15 (cashier can be hired for a wage of $15)

PK = $12 (Kiosk rents for $12)

At optimal cost minimization point, (MPC / MPK) = (PC / PK)

(MPC / PC) = (MPK / PK)

(MPC / PC) = (48 / 15) = 3.2

(MPK / PK) = (32 / 12) = 2.67

Since the (MPC / PC) and (MPK / PK) is not equal. It implies Whataburger is not using the optimal cost-minimizaing mix of cashier and kiosks.

b. We have to use the following:

(MPC / PC) > (MPK / PK)

i.e., 3.2 > 2.67

It means Whataburger hire more cashier and rent fewer kiosks in order to improve its mix of inputs and minimize the cost.

4 0

3 years ago

Rockwell Inc. reported the following results for the year ended June 30, 2016:

pychu [463]

Answer:

See attached file

Explanation:

The Retained Earnings Statement is prepared to show changes in the amount of retained earnings over the accountable period. Retained earnings and Stockholders´ contributions are the main accounts in Stockholders´ Equity.

The first ones are profits reserved by the company to invest in future projects rather than distribute as dividends to shareholders, that’s why are calculated as follows:

Retained Earnings Final Balance = Retained Earnings Beginning balance – Dividend in cash – Stock dividend + Net Income – Net loss.

Stock Divided will register as Stockholders´ contributions.

4 0

3 years ago