Answer:
ABC
In recording the payment of the note plus accrued interest at maturity on May 1, 2019, ABC would: __________
Journal Entries:
May 1, 2019:
Debit Interest Payable $1,000
Debit Interest Expense $2,000
Debit Notes Payable $100,000
Credit Cash $103,000
To record the payment of the note plus accrued interest at maturity.
Explanation:
a) Data and Calculations:
November 1, 2018:
6% 6-month Note Payable = $100,000
December 31, 2018:
Accrued interest = $1,000 ($100,000 * 6% * 2/12) for 2 months
May 1, 2019:
Interest Expense = $2,000 ($100,000 * 6% * 4/12) for 4 months
Transaction Analysis on May 1, 2019:
Interest Payable $1,000 Interest Expense $2,000 6% Notes Payable $100,000 Cash $103,000
A student wants to buy a smartphone so she can share pictures with her friends. An insurance claims adjuster wants to buy a smartphone to document accidents (take pictures, write a report, etc.). If they both purchase the same model smartphone, such as an Apple iPhone, which statement is most accurate?
a. Both the adjuster and the student we potential customers because in their own way, they both benefit from the product.
b. The student is the prospective customer since there are more students buying smartphones for personal use than there are insurance adjusters buying smartphones for business use.
c. Neither the adjuster nor the student is a prospective customer since the company will pay for the adjuster's smartphone and the student's parents will pay for hers.
d. Only a person who has bought a smartphone previously is a prospective customer, only previous owners of smartphones benefit from buying new ones.
e. The adjuster is a prospective customer because the smartphone will be used for work, the student is only a secondary user since the purpose of the smartphone is just for entertainment
Answer:
Option A (Both the adjuster and the student we potential customers because in their own way, they both benefit from the product).
Explanation:
Both the adjuster and the student were potential customers as they were both buying the smartphone for either personal or official use. The adjuster sees the smartphone as a product or tool that could be used to make work efficient. The student sees the product as a luxury. Either way, they are buying the smartphone and as such, they are very important to the producers of the smartphone because the product is useful to both of them.
Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $7,000 the first year, $9,000 the second year, $12,000 the third year, -$8,000 the fourth year, $19,000 the fifth year, $25,000 the sixth year, $28,000 the seventh year, and -$6,000 the eighth year. The project would cost the firm $47,300. If the firm's cost of capital is 18%, what is the modified internal rate of return
Answer:
The modified internal rate of return is 15.67%.
Explanation:
Note: See the attached excel file for the calculation of the total present value of the after-tax cash flows.
From the attached excel file, we have:
Total present value of the after-tax cash flows = $40,332.66
The modified internal rate of return (MIRR) can be calculated using the following formula:
MIRR = (PV / Outlay)^(1/n) * (1 + r) - 1……………….. (2)
Where;
PV = Total present value of the after-tax cash flows = $40,332.66
Outlay = Absolute value of cost of the project = $47,300
r = cost of capital = 18%, or 0.18
n = number of years = 8
Substitute the values into equation (1) to have:
MIRR = ($40,332.66 / 47,300)^(1/8) * (1 + 0.18) - 1 = 0.1567, or 15.67%
Therefore, the modified internal rate of return is 15.67%.
Determine the internal rate of return for a project that costs $177,000 and would yield after-tax cash flows of $21,000 per year for the first 5 years, $29,000 per year for the next 5 years, and $42,000 per year for the following 5 years.
Answer:
12.60 %
Explanation:
Using the CF function of a financial calculator the internal rate of return will be calculated as follows :
- $177,000 CF 0
$21,000 CF 1
5 shift Nj
$29,000 CF 2
5 shift Nj
$42,000 CF 3
5 shift Nj
Then
Shift IRR = 12.60 %
therefore,
the internal rate of return for a project is 12.60 %
India now has pockets of strengths in key high-technology industries such as software and pharmaceuticals. Why do you think India is developing strength in these areas?
Answer:
cuz they smart
Explanation:
Lafayette, Inc. was incorporated on January 1, 2014. Lafayette issued 15,000 shares of common stock and 800 shares of preferred stock on that date. The preferred stock is cumulative, $100 par, with an 12% dividend rate. Lafayette has not paid any dividends yet. In 2017, Lafayette had its first profitable year, and on November 1, 2017, Lafayette declared a total dividend of $44,000. What is the total amount that will be paid to common stockholders
Answer:
$5,600
Explanation:
Calculation to determine the total amount that will be paid to common stockholders?
Total amount paid to common stockholders=$44,000-[(800 (12%)($100)*4]
Total amount paid to common stockholders=$44,000-($9,600*4 )
Total amount paid to common stockholders=$44,000-$38,400
Total amount paid to common stockholders=$5,600
(2014-2017=4)
Therefore the total amount that will be paid to common stockholders is $5,600
Sysco Corporation, formed in 1969, is the largest global distributor of food service products, serving over 500,000 restaurants, hotels, schools, hospitals, and other institutions. The following summarized transactions are typical of those that occurred in a recent year (dollars are in millions). a. Purchased buildings costing $450 and equipment costing $234 for cash.
b. Borrowed $119 from a bank, signing a short-term note.
c. Provided $54,171 in service to customers during the year, with $23,358 on account and the rest received in cash.
d. Paid $129,574 cash on accounts payable.
e. Purchased $41,983 of inventory on account.
f. Paid payroll, $5,240 during the year.
g. Received $19,043 on account paid by customers.
h. Purchased and used fuel of $1,600 in delivery vehicles during the year (paid for in cash).
i. Declared $598 in dividends at the end of the year to be paid the following year.
j. Incurred $126 in utility usage during the year; paid $93 in cash and owed the rest on account.
Required:
For each of the transactions, prepare journal entries.
Answer:
Sysco Corporation
Journal Entries:
a. Debit Buildings $450
Debit Equipment $234
Credit Cash $684
To record the purchase of long-term assets for cash.
b. Debit Cash $119
Credit Short-term Note Payable $119
To record the funds borrowed from a bank.
c. Debit Accounts receivable $23,358
Debit Cash $30,813
Credit Service Revenue $54,171
To record the provision of service to customers on account and for cash.
d. Debit Accounts Payable $129,574
Credit Cash $129,574
To record the payment on account.
e. Debit Inventory $41,983
Credit Accounts Payable $41,983
To record the purchase of merchandise on account.
f. Debit Salaries Expense $5,240
Credit Cash $5,240
To record the payment of payroll during the year.
g. Debit Cash $19,043
Credit Accounts receivable $19,043
To record the cash received from customers on account.
h. Debit Delivery Vehicles Expense $1,600
Credit Cash $1,600
To record the purchase of fuel for the delivery vehicles.
i. Debit Dividend $598
Credit Dividends Payable $598
To record the declaration of dividend.
j. Debit Utilities Expense $126
Credit Cash $93
Credit Utilities Payable $33
To record the Utilities expenses incurred during the year.
Explanation:
Transactions Analysis:
a. Buildings $450 Equipment $234 Cash $684
b. Cash $119 Short-term Note Payable $119
c. Accounts receivable $23,358 Cash $30,813 Service Revenue $54,171
d. Accounts Payable $129,574 Cash $129,574
e. Inventory $41,983 Accounts Payable $41,983
f. Salaries Expense $5,240 Cash $5,240
g. Cash $19,043 Accounts receivable $19,043
h. Delivery Vehicles Expense $1,600 Cash $1,600
i. Dividend $598 Dividends Payable $598
j. Utilities Expense $126 Cash $93 Utilities Payable $33
Excellent Company has provided the following operating information for one of its divisions: Sales $100,000 Variable expenses $55,000 Contribution margin $45,000 Direct fixed expenses $35,000 Common fixed expenses allocated in proportion to sales amounts to $16,000. Based on the provided information, calculate the division's segment margin.
Answer:
See below
Explanation:
Given the above information, segment margin is computed as shown below.
Segment margin = Net sales - Cost of sales - Fixed cost
Given that;
Net sales = $100,000
Cost of sales = $55,000
Fixed cost = $35,000
Then,
Segment margin = $100,000 - $55,000 - $35,000
Segment margin = $10,000
Therefore, the division's segment margin is $10,000
Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 40 parts. A part requires 6 minutes in milling and 8 minutes in finishing. The move time between the two operations for a complete batch is 5 minutes. Under the lean philosophy, the part is produced in a cell that includes both the milling and finishing operations. The operating time is unchanged; however, the batch size is reduced to 5 parts and the move time is eliminated. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the traditional and lean manufacturing methods. If required, round percentages to one decimal place. Traditional Philosophy Lean Manufacturing Philosophy Value-added time fill in the blank 1 min fill in the blank 2 min Non-value-added time fill in the blank 3 min fill in the blank 4 min Total lead time fill in the blank 5 min fill in the blank 6 min Value-added ratio (as a percent) fill in the blank 7 % fill in the blank 8 %
Answer: See explanation
Explanation:
Traditional philosophy:
Value added time = 6 + 8 = 14
Non-value-added time = 14 × (40-1) + 5 = 551
Total lead time = 14 + 551 = 565
Value-added ratio (as a percent) = 14/565 × 100 = 2.48%
Lean Manufacturing Philosophy:
Value added time = 14
Non-value-added time = 14 × (5-1) = 56
Total lead time = 14 + 56 = 70
Value-added ratio (as a percent) = 14/70 × 100 = 20%
sykes company has sales revenue of $585,700. Cost of goods sold before adjustment is $335,900. The company's actual manufacturing overhead is $92,000, while allocated manufacturing overhead is $104,400. What is the actual gross profit
Answer:
Actual gross profit $262,200
Explanation:
The computation of the actual gross profit is as follows;
Allocated manufacturing overhead
$104,400
Actual manufacturing overhead
$92,000
Over applied manufacturing overhead
$12,400
Unadjusted cost of goods sold
$335,900
Less:
Over applied manufacturing overhead
($12,400)
Adjusted cost of goods sold
$323,500
Sales revenue
$585,700
Less:
Adjusted cost of goods sold
($323,500)
Actual gross profit
$262,200
The following data relate to direct labor costs for the current period: Standard costs 7,500 hours at $11.70 Actual costs 6,400 hours at $10.50 What is the direct labor time variance
Answer:
Direct labor time (efficiency) variance= $12,870 favorable
Explanation:
Giving the following information:
Standard costs 7,500 hours at $11.70
Actual costs 6,400 hours
To calculate the direct labor time (efficiency) variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (7,500 - 6,400)*11.7
Direct labor time (efficiency) variance= $12,870 favorable
A company purchased a marketable security for $10,000 on 3/3/2013. On 3/30/2013, the company prepared its financial statements and marked the security to its market value, which was $17,500. The security was sold on 4/30/2013 for $15,000. The company used the Trading Securities method to account for the security. The statutory tax rate is 35%. What was the effect of the sale of the security on Income Tax Payable on 4/30/2013
Answer:10,000
Explanation: i got it in my classkick
Mary makes 10 pies and 20 cakes a day and her opportunity cost of producing a cake is 2 pies. Tim makes 20 pies and 10 cakes a day and his opportunity cost of producing a cake is 4 pies. If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Answer:
If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Mary would specialize in making cakes while Tim would specialize in making pies.
Explanation:
a) Data and Calculations:
Mary's opportunity cost of making a cake = 2 pies
She can make additional 5 (10/2) cakes instead of making pies
This will increase her cakes to 25 a day (20 + 5)
Tim's opportunity cost of making a cake = 4 pies
She can make additional 40 pies (10 * 4) instead of making cakes
This will increase her pies to 60 pies a day (20 + 40)
When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.
Is an increase in the marginal income tax rate reflected by a shift in the after-tax supply of labor or a movement along the supply curve when the pretax wage rate is on the vertical axis?
Answer:
A shift in the supply curve of labour.
Explanation:
An increase in marginal income tax rate cause the income tax burden on a consumer to rise as the consumers income goes up.
What this means is that as his income gets to rise, he would have to pay more in taxes. Due to a rising change in what he pays as tax, what he would receive as income after tax would be lower at the same number of labor hours. On the labor supply curve this would depict a downward shift.
In conclusion, an increase in marginal tax would be shown by a shift in the after tax supply of labor which would fall backwards or downwards
Name four commercial services which are useful to the manufacturer
Answer:
hu
Explanation:
giyughhyyfrfjjtvvhi
Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $140 Direct labor 100 Manufacturing support 105 Marketing costs 55 Fixed costs: Manufacturing support 175 Marketing costs 65 Total costs 640 Markup (50%) 320 Targeted selling price $960 For Crandle Manufacturers Inc., what is the minimum acceptable price of this special order
Answer:
$400
Explanation:
Calculation to determine the minimum acceptable price of this special order
Using this formula
Minimum acceptable price=Direct materials+ Direct labor+ Manufacturing support +Marketing costs
Let plug in the formula
Minimum acceptable price=$140 + $100 + $105 + $55
Minimum acceptable price=$400
Therefore the minimum acceptable price of this special order is $400
Granger Printing currently uses a manufacturing facility costing $560,000 per year; 90% of the facility's capacity is currently being used. A start-up business has proposed a plan that would utilize the other 10% of the facility and increase the overall costs of maintaining the space by 11%. If the incremental method were used, what amount of cost would be allocated to the start-up business
Answer:
the amount of cost that allocated is $61,600
Explanation:
The computation of the amount of cost that allocated is shown below;
= The costing of the manufacturing facility × increase percentage of the overall cost for maintaining the space
= $560,000 × 11%
= $61,600
hence, the amount of cost that allocated is $61,600
The beauty of an economic model comes from:______.
a. its ability to represent a complex reality without any simplification.
b. its ability to make clear predictions that are consistent with reality.
c. its simplicity in presenting the essential elements of an otherwise complex reality.
d. b and c.
Answer:
D
Explanation:
An economic model is a simplified abstraction of reality. An economic model aims to present economic reality in a simplified form. it also aims to make accurate prediction consistent with reality.
for example, the law of demand is an example of an economic model.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
this economic model is true because rational human beings tend to purchase more of normal goods when the price is lower than when the price is higher.
Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021:
Net income $240,000
Dividends declared and paid $72,000
Market price of common stock on 12/31/2016 $29/share
What amount would Matsui report in its year-end 2016 balance sheet for its investment in Yankee?
a. $1,608,000.
b. $1,368,000.
c. $1,329,600.
d. None of these answer choices is correct.
Answer: $1,852,320
Explanation:
First find out the proportion owned by Matsui.
= 74,800 shares / 220,000
= 34%
The investment at the end of the year is:
= Cost of investment + Shares of net income - Share of dividend
Share of income:
= Percentage ownership * Net income
= 34% * 240,000
= $81,600
Share of dividend:
= 34% * 72,000
= $24,480
Investment at end of year:
= 1,795,200 + 81,600 - 24,480
= $1,852,320
You can display good customer service by
Answer:
Showing good manner, asking if they need anything, and etc...
Explanation:
Answer:
having a professional appearance while attending to costumers.
hope this helps
have a good day:)
Explanation:
The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2800 units, the actual direct labor cost was $83200 for 5200 direct labor hours worked, the total direct labor variance is $2800 unfavorable. $800 favorable. $800 unfavorable. $500 unfavorable.
Answer:
$800 favorable
Explanation:
Calculation to determine what the total direct labor variance is
Using this formula
Total Direct Labor Variance=(Standard Direct Labor Cost - Actual Direct Labor Cost
Let plug in the formula
Total Direct Labor Variance=[(2800 × 2) × $15]- $83200
Total Direct Labor Variance=$84000 - $83200
Total Direct Labor Variance = $800 favorable
Therefore the total direct labor variance is$800 favorable
Waterway Industries Recorded operating data for its Cheap division for the year. Waterway requires its return to be 10%. Sales $1600000 Controllable margin 88000 Total average assets 4400000 Fixed costs 100000 What is the ROI for the year
Answer:
See below
Explanation:
Given the above information, first we need to get the value of contribution margin , which is computed as;
Controllable margin = Contribution margin - Total direct fixed cost
$88,000 = Contribution margin - $100,000
Contribution margin = $88,000 + $100,000
Contribution margin = $188,000
Also,
Net income = Contribution margin - Total fixed expense
Net income = $188,000 - $100,000
Net income = $88,000
Return on investment = Net income ÷ Average operating assets
Return on investment = $88,000 ÷ $4,400,000
Return on investment = 2%
Therefore, the ROI for the year is 2%
Gullett Corporation had $34,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $83,000 of raw materials. The journal entry to record the purchase of raw materials would include a:
Answer:
A decrease in price
Explanation:
Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element Standard (per unit) Actual
Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards ($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours ($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour (fixed $3.50; variable $2.60) $49,000 fixed overhead $37,000 variable overhead
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400.
Required:
Compute the total, price, and quantity variances for (1) materials and (2) labor.
Answer:
Results are below.
Explanation:
To calculate the total, price, and quantity variance for direct material, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (4.4 - 4.15)*90,500
Direct material price variance= $22,625 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (8*11,250 - 90,500)*4.4
Direct material quantity variance= $2,200 unfavorable
Total direct material variance= 22,625 - 2,200= $20,425 favorable
To calculate the total, rate, and efficiency variance for direct labor, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1.2*11,250 - 14,250)*13.4
Direct labor time (efficiency) variance= $10,050 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (13.4 - 14.1)*14,250
Direct labor rate variance= $9,975 unfavorable
Total direct labor variance= -10,050 - 9,975= $20,025 unfavorable
cutter enterprises purchased equipment for $75,000 on january 1, 2021. the equipment is expected to have a five-year life and a residual value of $4,200. using the double-declining-balance method, depreciation for 2021 and the book value at december 31, 2021, would be: book
Answer:
Double Declining Depreciation rate = 1/5*2
Double Declining Depreciation rate = 40%
Double Declining Depreciation for 2021 = $75,000*40%
Double Declining Depreciation for 2021 = $30,000
Book value at December 31, 2021 = $75,000 - $30,000
Book value at December 31, 2021 = $45,000
whistle works manufacturers safety whistle keychains. They have the following information available to prepare their master budget whistle works sells eafch whistle for $12. It takes .25 direct labor hours to produce each whistle at a cost of $15 per hour. How much will direct labor cost be in December
Answer:
See below
Explanation:
The above information is incomplete. However, similar question will be used.
Caterpillar Inc. (CAT) pays an annual dividend of $4.45. The company is expected to continue paying this dividend with no future growth in dividends. Investors require 11% rate of return on this investment. What is the current stock value of CAT
Answer:
$40.45
Explanation:
The current stock value of CAT is computed as below
Current stock value = Annual dividend / Rate of return
Current stock value = $4.45 / 11%
Current stock value = $4.45 / 0.11
Current stock value = $40.454546
Current stock value = $40.45
So, the current stock value of CAT is $40.45.
Mimi is granted a license to sell her unique Spirit Pins at local high school lacrosse games. When Mimi prices her pins at $10, she sells 20 pins per game. When she lowers her price to $8, she sells 40 pins. The additional money she earns from dropping her price is known as the __________.
a. Output effect
b. Price effect
c. Marginal revenue
d. Opportunity cost
Answer:
c
Explanation:
Marginal revenue is the change revenue when quantity sold increases by one unit
Marginal revenue = change in total revenue /change in quantity sold
Mimi's marginal revenue = $10 - $8 = $2
Creating a Budget
Before you can make a spending plan that works for your particular situation, you'll need to understand your spending priorities. What must you spend money on, and what items do you simply want? First, make sure you understand the following terms:
budget: a plan for saving and spending
expenditure: the amount of money spent
necessity: an item that a person must have, such as housing, clothing, or food
luxury: an item that offers physical comfort or enjoyment but is not necessary for life and health.
1. Classify each of the following expenditures as a necessity or a luxury. If any item can be considered either a necessity or a luxury, depending on the situation, classify it as either.
Expenditure Necessity Luxury Either
a. Auto insurance
b. Clothing for school
c. Concert tickets
d. Dinner for two at the newest
e. restaurant in town Groceries
f. Music downloads
g. Medical treatment for strep throat
h. Theme park tickets
i. New car
j. Rent
k. School lunches
I. School ski trip
m. Cell phone service
2. For those items that you indicated could be either necessities or luxuries, describe when you would consider them necessities and when you would view them as luxuries.
MAKING A BUDGET
3. Income First, write down your weekly income: $______.
4. Expenditures For one week, keep track of all of your expenditures. At the end of the week, put the totals in the table below.
Weekly Expenditure Current Amount
Clothing $
Debt repayment (monthly payment + 4) $
Entertainment $
Food (including groceries, meals
out, and snacks) $
Rent and utilities (monthly payment = 4) $
Transportation (own car, ridesharing, public
transportation, etc.) $
Personal care items $
Other $
Total Weekly Expenditures $
5. Subtract your total expenditures from your weekly income.
6. Revised budget
At the end of the week, did you have any money left? Or did you spend more than you earned? If you want to make better use of your money, take a look at how you're spending it and decide where you can trim expenditures. You may find that you could be spending your money on something you really want.
Weekly Expenditure New Budget Actual Spending
Clothing $ $
Debt repayment (monthly payment + 4) $ $
Entertainment $ $
Food (including groceries, meals out,
and snacks) $ $
Rent and utilities (monthly payment + 4) $ $
Transportation (own car, ridesharing,
public transportation, etc.) $ $
Personal care items $ $
Other $ $
Total Weekly Expenditures $ $
7. Using your revised budget as a guide, record your income and expenses for another week. How much money were you able to save?
Answer:
a. Auto insurance - Expenditure
b. Clothing for school - necessity
c. concert tickets - luxury
d. Dinner for two at the newest - luxury
e. Restaurant in town groceries - expenditure
f. music downloads - luxury
g. medical treatment for strep throat - necessity
h. Theme park tickets - luxury
i. New car - luxury
j. Rent - expenditure
K. school lunches - necessity
l. school ski trip - expenditure
m. Cell phone service - necessity
Explanation:
2. Necessity is anything without which survival of a person is not possible. Luxury is anything which adds value to the living standard of a person but survival without such thing is possible.
3. My weekly income is $200
4. Clothing $20
Debt repayment $50
entertainment $30
Food $45
Rent and utilites $25
transportation $10
Personal care items $5
Others $3
total weekly expenditure $188
5. $200 - $188 = $12
6. Yes i have $12 as saving at the end of the week.
Sales $ 100,000 Operating expenses $ 94,000 Operating assets $ 40,000 Stockholder's equity $ 25,000 Cost of capital 10 % What is Sweet Dreams Company's return on investment (ROI)
Answer:
15%
Explanation:
Given that :
Operating expenses = $94000
Operating assets = $40,000
Sales = $100,000
Return on investment = profit / operating asset
Profit = sales - operating expenses
Profit = (100,000 - 94000) = $6000
Return on investment = $6000 / $40000 = 0.15
= 0.15 * 100% = 15%
A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its
Answer:
Pricing strategy to stay competitive
Explanation:
Pricing strategy is the process by which a company sets prices of goods and services offered to a consumer.
In setting up a price strategy the management.of a business need to put into consideration the competitive reaction, pricing position, pricing segment, and pricing capability.
The generic drugs companies in the US are selling fluconazole for a higher price than pharmaceutical company with headquarters in India in the international market.
In order for them to stay competitive they will need to review their price downward or customers will switch to the cheaper option