Business
You are the manager of a firm that sells a leading brand of alkaline batteries. Click on the link below to access data on the demand for your product. Specifically, the file contains data on the natural logarithm of your quantity sold, price, and the average income of consumers in various regions around the world. Use the information provided in the excel spreadsheet to perform a log-linear regression. Excel Data File Fill in your estimates below: Instruction: Enter a negative number if the coefficient estimate is negative, and round your response to two decimal places. lnQ=C ____ + _____ InP+ _____ InM Determine the likely impact of a 3 percent decline in global income on the overall demand of your product. a. Demand will decline by approximately 0.1%, but since income elasticity isn't significantly different from zero, it likely won't fall at all. b. Demand will fall by nearly 10%, and income elasticity is significantly less than zero. c. Demand will fall by nearly 1%, and income elasticity is significantly less than zero. d. Demand will decline by approximately 3%, but since income elasticity isn't significantly different from zero, it likely won't fall at all.
Jensen Automotive produces alternators for American-made cars. They generally use a static budget with the following costs based on 8,000 units per month: indirect materials, $22,000; indirect labor, $25,000; utilities, $12,000; supervision, $4,000; depreciation, $18,000. If Jensen wanted to create a flexible budget for 9,000 units, what value would they record for variable costs
Diamond Company manufactures two models of cassette recorders: VCH and MTV. Based on the following production data for April, prepare a production budget. VCH MTV Estimated inventory (units), April 1 2,900 4,000 Desired inventory (units), April 30 6,900 5,250 Expected sales volume (units): Eastern zone 12,500 12,960 Midwest zone 19,000 19,800 Western zone 14,500 9,840
Benedict Company leased equipment to Mark, Inc., on January 1, Year 2. The lease is for an 8-year period expiring December 31, Year 9. The first of 8 equal annual payments of $600,000 was made on January 1, Year 2. Benedict had purchased the equipment on December 29, Year 1, for $3,200,000. The lease is appropriately accounted for as a sales-type lease by Benedict. Assume that the present value at January 1, Year 2, of all rent payments over the lease term discounted at a 10% interest rate was $3,520,000. What amount of interest income should Benedict record in Year 3 (the second year of the lease period) as a result of the lease
A machine purchased three years ago for $306,000 has a current book value using straight-line depreciation of $190,000; its operating expenses are $38,000 per year. A replacement machine would cost $222,000, have a useful life of eleven years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $76,000 after eleven years. The current disposal value of the old machine is $86,000; if it is kept 11 more years, its residual value would be $10,000. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced
Assume that last year, Cliff Consulting, a firm in Berkeley, CA, had the following contribution income statement: CLIFF CONSULTING Contribution Income Statement For the Year Ended September 30Sales revenue $ 1,200,000Variable costs Cost of services $ 480,000 Selling and administrative 60,000 540,000Contribution margin 660,000Fixed Costs -selling and administrative 440,000Before-tax profit 220,000Income taxes (21%) 46,200After-tax profit $ 173,800(a) Determine the annual break-even point in sales revenue.(b) Determine the annual margin of safety in sales revenue.(c) What is the break-even point in sales revenue if management makes a decision that increases fixed costs by $80,000?(d) With the current cost structure, including fixed costs of $440,000, what dollar sales revenue is required to provide an after-tax net income of $250,000?(e) Prepare an abbreviated contribution income statement to verify that the solution to requirement (d) will provide the desired after-tax income.