BUS208 Case Studies in Business Administration

Ahngram Corp. has 1,000 defective units of a product that cost $3.70 per unit in direct costs and $7.20 per unit in indirect cos

harina [27]

Answer:

Reowrk:

Effect on income= $10,800 increase

Explanation:

Giving the following information:

Number of units= 1,000

Sell as-is:

Selling price= $4.7

Rework:

Incremental cost= $3.3

Selling price= $14.1

We need to calculate the effect on the income of both options:

Sell as-is:

Effect on income= 4.7*1,000= $47,000 increase

Rework:

Effect on income= 1,000*(14.1 - 3.3)

Effect on income= $10,800 increase

3 0

3 years ago

Shoshanna, the regional manager of a global sales organization, gives freedom to the sales representatives on the amount spent o

Citrus2011 [14]

Answer:

C. Ethical Standards

Explanation:

The ethical standards establish the parameters of behavior that owners and top executives expect from employees and also from suppliers, at least to the extent of their relationship with the organization.

3 0

3 years ago

Michael's, Inc., just paid $2.20 to its shareholders as the annual dividend. Simultaneously, the company announced that future d

Whitepunk [10]

Answer:

The maximum price that should be paid for one share of the company today is $54.895

Explanation:

The price of a stock that pays a dividend that grows at a constant rate forever can be calculated using the constant growth model of Dividend discount model (DDM) approach. The DDM values a stock based on the present value of the expected future dividends. The formula for price today under this model is,

P0 = D1 / r - g

Where,

D1 is the expected dividend for the next period or D0 * (1+g)

r is the required rate of return

g is the growth rate in dividends

SO, the maximum that should be paid for this stock today is:

P0 = 2.2 * (1 + 0.048) / (0.09 - 0.048)

P0 = $54.895 rounded off to $54.90

5 0

3 years ago

The gross earnings of the factory workers for Oriole Company during the month of January are $72,000. Of the total accumulated c

Alexxx [7]

Answer:

a.

Wages Expense $72,000 (debit)

Wages Payable $72,000 (credit)

b.

Work In Process : Direct Labor $60,480 (debit)

Work In Process : Direct Labor $11,520 (debit)

Wages Payable $72,000 (credit)

Explanation:

The factory labor cost is a manufacturing cost and is included in product valuation.

(a)Record the factory labor costs

Here we have to recognize the expense incurred during the period and the liability since settlement of amount owing to workers has not yet been made

Wages Expense $72,000 (debit)

Wages Payable $72,000 (credit)

(b)Assign factory labor to production

Here we accumulate the cost to the Work In Process of manufacture taking not of cost classification.

Work In Process : Direct Labor $60,480 (debit)

Work In Process : Direct Labor $11,520 (debit)

Wages Payable $72,000 (credit)

8 0

4 years ago

If you are in a car accident caused by someone else who also has insurance, which type of insurance plan will not require you to

Darina [25.2K]

High Deductible Plan Answer A

7 0

3 years ago