Business Report: Rio Tinto's Net Zero Accounting Disclosures
Disadvantages of Poor Net Zero Accounting Disclosures from an Agency Theory Lens
Agency theory examines the principal-agent relationship between shareholders (principals) and management (agents) of a company. In this case, Rio Tinto's poor net zero accounting disclosures have several disadvantages for its shareholders.
Firstly, inadequate net zero accounting disclosures limit transparency and accountability. Shareholders rely on accurate and comprehensive information to assess a company's financial performance and risks.
By not disclosing actions to align with a 1.5°C temperature resilience target and the related financial implications, Rio Tinto fails to provide shareholders with a clear understanding of its strategy to address climate change. This lack of transparency hampers investors' ability to evaluate the company's long-term sustainability and exposes them to potential financial risks associated with climate change impacts and regulations.
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Which of the following is not an example of an agency cost?
O a lavish dinner or trip.
O a missed investment opportunity.
O a cost that results from a conflict of interest between the agent and the principal.
O the cost of a new piece of equipment.
The cost of a new piece of equipment is not an example of an agency cost.
Agency costs refer to the conflicts of interest and associated costs that arise between the principal (e.g., shareholders, owners) and the agent (e.g., managers, employees) in a principal-agent relationship. These costs typically arise due to the agent's actions or decisions that deviate from the best interests of the principal, resulting in financial or non-financial costs.
Examples of agency costs include a lavish dinner or trip that is not aligned with the business purpose, a missed investment opportunity that could have benefited the principal but was neglected by the agent, and costs resulting from conflicts of interest between the agent and the principal, such as self-dealing or pursuing personal gain at the expense of the principal.
On the other hand, the cost of a new piece of equipment is a regular operating expense or a capital expenditure that is not directly associated with agency conflicts or deviations from the principal's interests. It is a cost incurred to support the firm's production or operations and is not specific to the agency relationship between the principal and the agent.
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What is the nature of the positive externality associated with medical research? () - justify your answer
A. Institutions that engage in research and development may develop more profitable products.
B. Institutions that engage in research and development may be able to lower their production costs of medicines that they make.
C. The research may lead to discoveries that enable other institutions to develop further medical enhancements.
D. Institutions that engage in research can pay more taxes.
The positive externality associated with medical research is that it provides benefits to society beyond those that are captured by the private market.
The nature of the positive externality associated with medical research is that it provides benefits to society beyond those that are captured by the private market. Medical research can lead to the development of new treatments, cures, and technologies that improve health outcomes and quality of life for individuals. These benefits are not limited to those who directly consume the products of medical research, but also extend to society as a whole. This is because healthier individuals are more productive, which can lead to economic growth and increased wealth. Additionally, medical research can lead to the development of new technologies and knowledge that can be used in other industries, leading to further economic growth and development.
The positive externality associated with medical research is an example of a market failure, as the private market does not fully capture the benefits of medical research. This can lead to underinvestment in medical research, as private firms may not be willing to invest in research that does not provide a sufficient return on investment. To address this market failure, governments often provide funding for medical research or offer incentives for private firms to invest in research.
In summary, these benefits include improved health outcomes, increased productivity, and economic growth. However, the private market may not fully capture these benefits, leading to underinvestment in medical research.
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Suppose Charlene Brewster has times (in seconds) of 8.3,8.7,8.2,8.6,8.8,8.4 and a performance rating of 115%. a) For a given ahlowance factor of 10%, the standard time for the operation = seconds (round your response to two decimal places).
The standard time for the operation, considering an allowance factor of 10%, is 7.399 seconds.
To calculate the standard time with a performance rating, we can use the following formula:
Standard Time = Observed time * (100 / Performance rating)
Given the observed times of 8.3, 8.7, 8.2, 8.6, 8.8, and 8.4, and the performance rating of 115%, we can calculate the standard time for each observation as follows:
Standard Time 1 = 8.3 * (100 / 115) = 7.217 seconds
Standard Time 2 = 8.7 * (100 / 115) = 7.565 seconds
Standard Time 3 = 8.2 * (100 / 115) = 7.130 seconds
Standard Time 4 = 8.6 * (100 / 115) = 7.478 seconds
Standard Time 5 = 8.8 * (100 / 115) = 7.652 seconds
Standard Time 6 = 8.4 * (100 / 115) = 7.304 seconds
To calculate the average standard time, we sum up the individual standard times and divide by the number of observations:
Average Standard Time = (7.217 + 7.565 + 7.130 + 7.478 + 7.652 + 7.304) / 6 = 7.399 seconds
Therefore, the standard time for the operation, considering the performance rating of 115%, is approximately 7.399 seconds.
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At the Faroes there are only three climate conditions imaginable; Wet, Normal and Cold! This poses a major challenge for anyone involved in agricultural businesses. Given statistics on hand the probabilities for each condition is 40%,20% and 40%. Based on this anyone can doubt if normal really can be seen as normal...
The traditional wheat used delivers a yield of 25% in wet conditions, 7% if normal and −7% if it is cold. However at SLU in Alnarp a new grain of genetically modified grain of wheat has been developed with potentially much better chances to deliver a good yield.
For the genetically modified wheat the expected yield is 4% if wet, 10% if normal and 15% if cold.
The question is of course if the genetically modified wheat is preferable. On the other hand one can imagine a combination of 40% traditional and 60% genetically modified wheat.
The expected yield of the combined wheat is 9.2 which is closer to the genetically modified wheat expected yield of 9.6. Thus, it can be inferred that a combination of 40% traditional and 60% genetically modified wheat is a good option.
Genetically modified wheat is preferable to traditional wheat. The probability of genetically modified wheat being a preferable option is calculated based on the expected yield of each type of wheat and its corresponding probability.
According to the given statistics, the probability for wet, normal and cold conditions is 40%, 20%, and 40% respectively.
The traditional wheat yield is 25% in wet conditions, 7% in normal conditions, and -7% in cold conditions. While the genetically modified wheat yield is 4%, 10%, and 15% for wet, normal, and cold conditions respectively. Let's calculate the expected yield for both types of wheat:
Traditional wheat expected yield = (0.4 × 25) + (0.2 × 7) + (0.4 × (-7)) = 10 + 1.4 - 2.8 = 8.6
Genetically modified wheat expected yield = (0.4 × 4) + (0.2 × 10) + (0.4 × 15) = 1.6 + 2 + 6 = 9.6
Therefore, genetically modified wheat is preferable as it has a higher expected yield of 9.6 compared to traditional wheat's expected yield of 8.6.
One can also consider a combination of 40% traditional and 60% genetically modified wheat. The expected yield of this combination would be:
Expected yield of combined wheat = (0.4 × 8.6) + (0.6 × 9.6) = 3.44 + 5.76 = 9.2
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iStar Inc., plans, develops and sells master planned communities. True Falise
iStar Inc. is a real estate development firm that specializes in the design, construction, and marketing of luxury housing communities. It also specializes in the production of world-class facilities that inspire, enhance, and revitalize the urban living experience.
iStar Inc. is a real estate development firm that specializes in the design, construction, and marketing of luxury housing communities. It also specializes in the production of world-class facilities that inspire, enhance, and revitalize the urban living experience. iStar Inc. creates exceptional and unique living spaces that promote neighborhood collaboration, social integration, and a sense of community. They build master-planned communities, which are comprehensive design solutions that address the diverse needs of different community members. iStar Inc. collaborates with industry professionals and creative visionaries to create community assets that attract a wide range of people with different interests and backgrounds.
iStar communities include mixed-use properties, destination resorts, and retirement communities. All of the communities iStar Inc. develops are guided by a commitment to innovation, creativity, and sustainability. iStar Inc.'s master-planned communities offer residents access to excellent schools, state-of-the-art healthcare, shopping and dining, entertainment, and outdoor recreation. Their communities are designed to cater to a broad range of lifestyles, from growing families to active seniors, and from urbanites to outdoor enthusiasts. In conclusion, iStar Inc. plans, develops, and sells master-planned communities that promote a sense of belonging and social interaction while providing residents with a range of amenities and facilities.
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Firm A currently sells at a price-earnings (P/E) multiple of 10. The firm has 2 million shares outstanding and sells at a price per share of $40. Firm B has a P/E multiple of 8, has 1 million shares outstanding, and sells at a price per share of $20.
1. What will be the earnings per share of the merged firm AB, if firm A acquires firm B by exchanging one of AB’s shares for every two of Firm B?
2. What will happen to A’s price per share if the merger has no economic gains? What should be the P/E of the merged firm AB?
3. Show that shareholders of neither A nor B realise any change in wealth.
4. Who usually benefits and who usually losses from a typical merger? List and briefly explain the relevant stakeholders.
1.After the merger, Firm A acquires Firm B by exchanging one share of AB for every two shares of Firm B. 2. If the merger has no economic gains, the price per share of Firm A may not change significantly.3 Shareholders of neither Firm A nor Firm B realize any change in wealth in a stock-for-stock merger, assuming the merger has no economic gains. 4 In a typical merger, the benefits and losses can vary depending on the specific circumstances and stakeholders involved.
To determine the earnings per share (EPS) of the merged firm AB, we need to calculate the combined earnings and the new number of shares.
Firm A:
P/E multiple = 10
Price per share = $40
Number of shares = 2 million
Firm B:
P/E multiple = 8
Price per share = $20
Number of shares = 1 million
To calculate the earnings for each firm, we can use the formula: Earnings = Price per share / P/E multiple.
Earnings for Firm A = $40 / 10 = $4 per share
Earnings for Firm B = $20 / 8 = $2.5 per share
After the merger, Firm A acquires Firm B by exchanging one share of AB for every two shares of Firm B. This means that for each share of AB, there will be one share from Firm A and two shares from Firm B.
Total earnings for the merged firm AB = Earnings for Firm A + Earnings for Firm B = $4 + $2.5 = $6.5
The new number of shares in the merged firm AB will be the sum of the shares from Firm A and Firm B. In this case, it will be 2 million shares from Firm A and 2 million shares from Firm B (1 million shares * 2).
Therefore, the earnings per share (EPS) of the merged firm AB will be: EPS = Total earnings / Total number of shares = $6.5 million / 4 million shares = $1.625 per share.
If the merger has no economic gains, the price per share of Firm A may not change significantly. However, it could be affected by factors such as market sentiment or investor perception. The P/E ratio of the merged firm AB would depend on various factors, including the financial performance and growth prospects of the combined entity, market conditions, and investor sentiment.
Shareholders of neither Firm A nor Firm B realize any change in wealth in a stock-for-stock merger, assuming the merger has no economic gains. The exchange ratio of one share of AB for every two shares of Firm B ensures that the value of the shares received by Firm B shareholders is equivalent to the value of their original shares. Similarly, Firm A shareholders maintain their ownership stake in the merged entity, so there is no immediate change in their wealth.
In a typical merger, the benefits and losses can vary depending on the specific circumstances and stakeholders involved. Here are some relevant stakeholders and how they may be impacted:
Shareholders: Shareholders of the acquiring company (Firm A) may benefit from potential synergies, cost savings, increased market power, and improved financial performance. However, if the merger does not create value or if there are execution risks, shareholders of both firms may experience a decline in stock value.
Employees: Employees of both firms may face changes in job security, organizational structure, and potential redundancies. There may be benefits from expanded career opportunities or enhanced resources in the merged entity, but there could also be job losses or reassignments.
Customers: Customers may benefit from increased product offerings, improved services, or better pricing resulting from economies of scale. However, there is a risk of reduced competition and potential negative impacts on customer choice or quality if the merger leads to market concentration.
Suppliers: Suppliers may face changes in contractual agreements, renegotiation of terms, or potential consolidation of purchasing power by the merged entity. This can impact pricing, relationships, and market dynamics.
Communities: The impact on local communities can vary depending on the merger's effects on employment, tax contributions, and corporate social responsibility initiatives. Positive outcomes may include increased investment or job creation, while negative outcomes may include job losses or reduced community support.
It's important to note that the specific outcomes of a merger can vary significantly depending on the circumstances, industry dynamics, and how the merger is executed.
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The collapse of the Grand Banks fisheries was an example of:
a fishing quota mismanagement
b the Tragedy of the Commons
c markets working effectively
d sustainable fishing management
The collapse of the Grand Banks fisheries was an example of the (B) tragedy of the commons.
What is the tragedy of the commons?
The tragedy of the commons refers to a scenario in which individuals use a shared resource (a "commons") to their own benefit, leading to the eventual depletion of the resource as everyone pursues their self-interest without regard for the overall wellbeing of the group as a whole.
The collapse of the Grand Banks fisheries was an example of the tragedy of the commons.
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Based on your own personal experiences, post an example of Level 1, 2 or 3 listening that that you have encountered or have had happen to yourself when engaged in a conversation with someone.
1/Explain how the positive or negative listening within the conversation affected the outcome of the conversation.
Example: I was talking with a friend over the phone and became distracted by an event on my television. I was using Level 3 listening and was distracted which resulted in me missing that the time had been moved up 30 minutes for a meeting with old friends. Being 30 minutes late for the get together meant less time spent with my friends I had been looking forward to seeing for several weeks.
2/Include in your post how the roadblock ( in a negative experience) or excellent listening skills ( in a positive experience) affected the outcome of the conversation
Positive or negative listening - One example of Level 2 listening that I have experienced is when I was talking to my professor and having a conversation after class regarding an assignment. I was explaining to him my doubts and difficulties regarding the topic, and he was listening attentively, responding with additional information to help me understand the material better. His excellent listening skills helped me to feel heard and understood, which in turn gave me the confidence to ask more questions and ultimately achieve a better outcome on the assignment.
Positive or negative listening within a conversation can affect the outcome of the conversation in different ways. :Positive listening skills, such as active listening, can improve the relationship between the listener and the speaker by making the speaker feel heard and understood. It can also lead to a more productive conversation and an outcome that is mutually beneficial for both parties.
:On the other hand, negative listening skills, such as distraction or interrupting, can create roadblocks in the conversation, making the speaker feel unheard and frustrated. This can result in a negative outcome for the conversation, such as misunderstandings or hurt feelings.In the example I provided, the excellent listening skills of my professor resulted in a positive outcome of the conversation, as it helped me to better understand the material and improve my performance on the assignment. In contrast, in the example of being distracted during a conversation with a friend, it resulted in a negative outcome, as I missed important information and was late to an event.
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Critically discuss the Importance of a recruitment process in an
organization and the need for it at Venus Style.
The recruitment process plays a crucial role in an organization, including Venus Style, for several reasons. It ensures that the right candidates are identified and hired, leading to a skilled and competent workforce.
The process involves various stages, such as job analysis, sourcing, screening, interviewing, and selection, which collectively contribute to the overall success of the organization.
Talent Acquisition: An effective recruitment process helps Venus Style attract a pool of qualified candidates who possess the necessary skills, knowledge, and experience. This ensures that the organization can choose from a diverse range of candidates, increasing the likelihood of finding the best fit for each position.
Cost Reduction: A well-structured recruitment process minimizes the risk of hiring the wrong candidates. By carefully evaluating applicants' qualifications and conducting thorough screenings, Venus Style can avoid costly hiring mistakes, such as employee turnover or low productivity. This ultimately saves the organization time and resources.
Organizational Culture and Fit: The recruitment process enables Venus Style to assess not only the technical capabilities of candidates but also their compatibility with the company's values, goals, and work culture. Hiring individuals who align with the organization's values and work ethic promotes a positive and cohesive work environment.
In conclusion, the recruitment process holds significant importance for Venus Style. It ensures that the organization can attract and select the most suitable candidates while minimizing hiring risks and maintaining a strong organizational culture. By investing time and resources in an effective recruitment process, Venus Style can secure a talented workforce and set the stage for long-term success.
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Which state government agencies can help U.S. companies move
into exporting?
a.Export-promotion offices
b.Export Merchant offices
c. Export agencies
d.Public communication offices
e. Small busi
. Export-promotion offices
c. Export agencies
e. Small Business Administration (SBA)
State government agencies play a crucial role in assisting U.S. companies in entering the export market. These agencies offer various resources and services to support companies in their exporting efforts. The specific agencies that can help U.S. companies move into exporting include export-promotion offices, export agencies, and the Small Business Administration (SBA).
Export-promotion offices are dedicated entities that provide guidance and assistance to companies interested in expanding their presence in international markets. They offer expertise in export regulations, market research, trade missions, and promotional activities to help companies navigate the complexities of exporting.
Export agencies, such as state-level trade commissions or economic development agencies, focus on fostering export growth within their respective states. They provide comprehensive support by offering export counseling, market intelligence, export financing programs, trade shows, and networking opportunities. These agencies collaborate with other government entities and private organizations to facilitate international business opportunities for local companies.
The Small Business Administration (SBA) is a federal agency that works in conjunction with state governments to support small businesses, including those seeking to export. SBA provides resources such as export training programs, counseling services, loan guarantees, and access to export financing options. They assist small businesses in developing export strategies, understanding export regulations, and connecting with international buyers and distributors.
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This week we learned about the unique challenges and dynamics of the service market. Service providers must address a number of difficult issues to be successful. Below is a list of well-known service providers.
American Express
answer the following questions: Define the nature of the service. How is the service made tangible? Use examples, such as store environments, website features, etc. How is the service price compared to competitors? What signal does the price send to the marketplace?
Provides various 1. financial services to its customers, 2. The primary service is American Express is intangible, 3. American Express positions as a premium service provider, 4. The higher pricing of American Express cards sends a signal to the marketplace
American Express is a financial services company that primarily operates as a credit card issuer and payment processor.
Nature of the service: American Express provides various financial services to its customers, including credit cards, charge cards, travel services, insurance, and banking services. The core service they offer is the convenience and flexibility of making payments and transactions using their credit cards.
Tangibility of the service: While the primary service provided by American Express is intangible (financial transactions), they make their service tangible through physical credit cards issued to customers. The credit cards themselves serve as a tangible representation of the service and provide a physical means for customers to make payments.
Additionally, American Express has established a strong online presence through their website and mobile applications, which offer features such as account management, transaction tracking, and customer support, further enhancing the tangibility of their service in the digital realm.
Pricing compared to competitors: American Express typically positions itself as a premium service provider in the credit card industry. They offer a range of cards with different benefits and rewards, including higher spending limits, exclusive perks, and premium customer service.
As a result, their pricing tends to be higher compared to competitors offering standard credit cards. American Express justifies its higher prices by offering additional value and benefits to its customers, such as access to airport lounges, concierge services, and travel rewards programs.
Signaling through pricing: The higher pricing of American Express cards sends a signal to the marketplace that they provide premium services and cater to customers seeking exclusive benefits and superior customer service.
By setting higher prices, American Express establishes itself as a provider of high-quality financial services and aims to attract customers who value the added features and rewards associated with their cards. The pricing strategy helps differentiate American Express from its competitors and positions it as a prestigious brand in the financial services market.
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Dunn Corporation owns 100 percent of Grey Corporation’s common stock. On January 2, 2020, Dunn sold to Grey $49,200 of machinery with a carrying amount of $38,250. Grey is depreciating the acquired machinery over a five-year remaining life by the straight-line method. The net adjustments to compute 2020 and 2021 consolidated net income would be an increase (decrease) of
The net adjustments to compute 2020 and 2021 consolidated net income resulting from Dunn Corporation's sale of machinery to Grey Corporation can be determined by considering the carrying amount of the machinery and the depreciation method used by Grey.
In subsequent years, Grey Corporation will depreciate the acquired machinery over its remaining useful life of five years using the straight-line method. This depreciation expense will affect both Grey Corporation's standalone net income and the consolidated net income for 2021. The net adjustment to compute 2021 consolidated net income will be a decrease due to the depreciation expense reducing the overall income.
By considering the gain or loss on the initial sale and the subsequent depreciation expense, the net adjustments to compute 2020 and 2021 consolidated net income can be determined. These adjustments ensure that the intercompany transaction is appropriately accounted for in the consolidated financial statements.
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How did the long-term reliance on a plantation economy influence settlement patterns in the Caribbean?
The long-term reliance on a plantation economy in the Caribbean had a significant influence on settlement patterns in the region. It led to the establishment of large-scale agricultural plantations, which shaped the demographic composition, land ownership, and social structure of Caribbean societies.
The plantation economy in the Caribbean primarily revolved around the cultivation of cash crops such as sugar, tobacco, coffee, and cotton. European colonial powers established large plantations and relied on enslaved African labor to cultivate and harvest these crops. The concentration of land and resources in the hands of plantation owners resulted in the creation of a plantation elite class, who wielded significant economic and political power.
The plantation system led to the development of clustered settlements known as plantation towns or estates. These settlements were centered around the plantations and consisted of the main plantation house, housing for the plantation owners and managers, and quarters for enslaved laborers. The spatial arrangement of these settlements was designed to facilitate the management and control of enslaved populations.
The legacy of the plantation economy can still be seen in the Caribbean today. Many Caribbean countries continue to have uneven land distribution and concentrated wealth, reflecting the historical patterns of land ownership and economic inequality that originated from the plantation era. Additionally, the demographic composition of the region, with a significant African diaspora population, is a direct result of the forced migration of enslaved Africans to work on the plantations.
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Johnny's Tavern had 16 employees and total annual wages of $376,948 during the previous year. All employees earned more than $7,000 during the year. What is Johnny's Tavern's FUTA tax liability?
Johnny's Tavern's FUTA (Federal Unemployment Tax Act) tax liability can be calculated based on the total annual wages and the number of employees. In this case, with 16 employees and total annual wages of $376,948, we can determine the FUTA tax liability.
To calculate the FUTA tax liability, we need to consider the FUTA tax rate and the wage base limit. The FUTA tax rate is typically 6% of the taxable wages, and the wage base limit for FUTA tax is $7,000 per employee.
In this case, since all employees earned more than $7,000 during the year, the taxable wages for FUTA tax will be the total annual wages of $376,948. The FUTA tax liability can then be calculated by multiplying the taxable wages by the FUTA tax rate.
FUTA tax liability = Taxable wages * FUTA tax rate
= $376,948 * 6%
= $22,616.88
Therefore, Johnny's Tavern's FUTA tax liability would be $22,616.88 based on the given information .
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To build their savings, a family plans to save $900 each quarter. Their savings are erpected to eam 6.86x per annum compounded quarterly. The first deposit of $900 will be in exactly one quarter (3 months). After 14 years and 56 deposits, how much will the family have in savings? a. 96885.24 b. 101061.33 C. 105237.42 d. 83521.76 e. 74334.37 f. 78510.46
The family will have approximately $105,237.42 in savings after 14 years and 56 deposits. Therefore, the correct option is C. 105237.42.
To calculate the future value of the family's savings after 14 years and 56 deposits, we can use the formula for the future value of a series of deposits:
FV = PMT * ((1 + r)^n - 1) / r
Where FV is the future value, PMT is the periodic payment, r is the interest rate per period, and n is the number of periods.
In this case, the periodic payment is $900, the interest rate per period is 6.86% (or 0.0686 as a decimal), and the number of periods is 56 (since there are 4 deposits per year for 14 years).
Plugging these values into the formula, we can calculate the future value:
FV = $900 * ((1 + 0.0686)^56 - 1) / 0.0686
After evaluating this expression, we find that the family will have approximately $105,237.42 in savings after 14 years and 56 deposits. Therefore, the correct option is C. 105237.42.
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Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $29,000 in fixed costs to the $270,000 currently spent. In addition, Mary is proposing that a 5% price decrease ( $40 to $38 ) will produce a 25% increase in sales volume (20,000 to 25,000). Variable costs will remain at $25 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety.
Instructions
a. Prepare a CVP income statement for current operations and after Mary's changes are introduced. (Show column for total amounts only.) Would you make the changes suggested?
b. Compute the current break-even point in sales units, and compare it to the break-even point in sales units if Mary's ideas are implemented.
c. Compute the margin of safety ratio for current operations and after Mary's changes are introduced. (Round to nearest full percent.)
c. Current margin of safety ratio 10%
Compute contribution marqin, fixed costs, break-even point, sales for tarqet net income, and marqin of safety ratio.
Mary Willis, the advertising manager for Bargain Shoe Store, proposes changes to a major promotional campaign. These changes include installing a new lighting system and increasing display space, resulting in $29,000 in fixed costs.
Additionally, she suggests a 5% price decrease to $38 per pair of shoes, expecting a 25% increase in sales volume. Variable costs remain at $25 per pair. To evaluate the impact of these changes, a CVP (Cost-Volume-Profit) income statement is prepared for current operations and after implementing Mary's ideas. The break-even point in sales units and the margin of safety ratio are also computed. This information helps assess the feasibility and potential effects of Mary's proposed changes.
a. To analyze the effects of Mary's proposed changes, a CVP income statement is prepared for the current operations and after implementing her ideas. The CVP income statement shows the total amounts for sales, variable costs, contribution margin, and fixed costs, providing a clear overview of the financial implications. By comparing the two scenarios, it becomes evident how Mary's changes impact the company's profitability.
b. The break-even point in sales units is computed to determine the sales volume needed to cover all costs and reach a break-even point. By comparing the current break-even point with the break-even point after implementing Mary's changes, the impact on the sales volume required for profitability is assessed. If the break-even point decreases, it indicates that Mary's changes could potentially improve the company's financial position.
c. The margin of safety ratio is calculated to assess the company's cushion above the breakeven point. It represents the percentage by which sales can decline before the company starts operating at a loss. By comparing the current margin of safety ratio with the ratio after Mary's changes, it can be determined whether her ideas increase or decrease the company's ability to withstand fluctuations in sales.
d. By analyzing the CVP income statement, break-even point, and margin of safety ratio, management can make an informed decision regarding Mary's proposed changes. If the changes result in a more favorable financial position, such as a lower break-even point or an increased margin of safety, it would be advisable to implement them. Conversely, if the changes lead to a less favorable financial situation, management may need to reconsider or modify Mary's ideas to ensure profitability and financial stability.
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how many units must be sold in order to reach a before-tax income (πb) of $400,000?
To reach a before-tax income (πb) of $400,000, the number of units that must be sold depends on the contribution margin per unit and the fixed costs of the business.
To determine the number of units required to achieve a specific before-tax income, you need to consider the contribution margin, which is the difference between the selling price per unit and the variable cost per unit. The contribution margin represents the amount available to cover fixed costs and generate profit.
First, calculate the contribution margin per unit by subtracting the variable cost per unit from the selling price per unit. Let's say the contribution margin per unit is $50.
Next, determine the fixed costs, which are the costs that do not vary with the number of units sold. For example, let's assume the fixed costs are $200,000.
To calculate the number of units needed to reach the desired before-tax income, divide the total fixed costs plus the desired before-tax income by the contribution margin per unit:
($400,000 + $200,000) / $50 = 12,000 units
Therefore, in order to achieve a before-tax income of $400,000, the company must sell 12,000 units.
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Subject: Logistic management
Q#6) Why Sony Ericsson merge & why it move turn around and
which decission taken in this matter?
Q#7) Why Sony Ericsson has gone to bankruptcy Explain this
senerio in
Sony Ericsson merged to strengthen their positions in the mobile phone market and leverage their resources. They faced challenges due to competition, slow response, and lack of innovation, but restructured to focus on flagship smartphones under Sony Mobile Communications.
Q#6) The merger of Sony Ericsson was motivated by several factors. Firstly, both Sony and Ericsson aimed to strengthen their positions in the highly competitive mobile phone market by combining their resources, expertise, and technologies. The merger allowed them to pool their R&D capabilities, product portfolios, and distribution networks to achieve economies of scale and gain a competitive edge. Additionally, the collaboration aimed to leverage Sony's brand strength and Ericsson's experience in telecommunications infrastructure.
As for the turnaround, Sony Ericsson faced challenges due to intense competition, shifting market trends, and a lack of compelling products. To address these issues, the company undertook various strategic decisions. They focused on developing smartphones to tap into the growing demand for advanced mobile devices. They also worked on enhancing the user experience, improving software capabilities, and forging partnerships with popular operating systems like Android. These initiatives aimed to revitalize the product lineup and regain market share.
Q#7) Sony Ericsson did not go bankrupt. However, the company faced significant challenges in the early 2010s. The main reasons behind their struggles were the increasing dominance of competitors like Apple and Samsung in the smartphone market, slow response to market changes, and a lack of innovation. Sony Ericsson's reliance on outdated operating systems and its failure to capture the growing demand for touch-screen smartphones further contributed to its decline.
To address these issues, Sony Ericsson made several changes. In 2012, Sony acquired Ericsson's stake in the joint venture, leading to the establishment of Sony Mobile Communications. This move allowed Sony to have complete control over the mobile business and align it more closely with their overall strategy. Sony Mobile focused on developing flagship smartphones, expanding its product range, and incorporating its own technologies and strengths from other Sony divisions.
While Sony Ericsson faced significant challenges and market setbacks, it is important to note that it did not go bankrupt. The restructuring efforts and strategic decisions made by Sony, following the acquisition of Ericsson's stake, aimed to position the company for long-term sustainability and success in the highly competitive mobile industry.
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Scenerio: An operations manager is reluctant to update a job description because he/she/they need to hire really urgently and don't have the time. They just need to get that job posted! How will you convince them that an updated job description is the best way to recruit and select the best candidates? Are there other issues you'd also raise as reasons to do so?
Your HR Director has asked you to develop the questions to be used in exit interviews. What questions would you propose be included and why? What factors would you consider when conducting the actual exit interviews?
Companies that struggle to retain top performers run a risk of not meeting their business objectives. Describe why and also share at least 3 strategies which HR could implement to improve retention of top performing talent.
An updated job description is essential for attracting and selecting the best candidates because it provides clarity about the role and expectations, helps align candidate qualifications, and ensures a more efficient and effective recruitment process.
When an operations manager is reluctant to update a job description due to time constraints, it's important to emphasize the benefits of an updated description in recruiting and selecting the best candidates. Firstly, an updated job description provides clarity about the role, responsibilities, and expectations, enabling candidates to better understand the position they are applying for.
This clarity helps attract candidates who possess the necessary skills and qualifications, increasing the likelihood of finding the right fit for the job. Additionally, an updated job description ensures that the qualifications and requirements are up-to-date, which is crucial in today's rapidly evolving business landscape.
Moreover, an updated job description facilitates a more efficient and effective recruitment process. By clearly outlining the essential qualifications and job requirements, the hiring team can evaluate candidates more accurately and efficiently.
This saves time by reducing the number of unqualified applicants and allows the hiring team to focus on candidates who possess the desired skills and experience. A well-defined job description also helps in creating a consistent evaluation framework, enabling fair and objective candidate assessments.
In addition to the above, it's important to highlight other reasons for updating job descriptions. A revised job description can help align the expectations of the hiring team, as well as other stakeholders, such as HR and department heads, regarding the role and its responsibilities. It ensures that everyone involved in the recruitment process has a shared understanding of the position, which leads to more effective candidate evaluation and selection.
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(10 marks) b) Peter owned 100% of the equity share capital of Sharen, a wholly owned subsidiary The assets at the reporting date of Sharon were as follows: जil the reponing date a tire within one of Sharons buildings led to an impairment review being carried out. The recoverable amount of the business was determined to be K9.8 million. The fire destroyed some plant and equipment with a carrying value of K1.2 million and there was no option but to scrap it. The other intangibles consist of a license to operate Sharons plant and equipment Following the scrapping of some of the plant and equipment a competitor offered to purchase the patent for K1.5 million. The Receivables and Cash are not stated at their Realisable value and do not require Impairment Show how the impairment loss in Sharon is allocated amongst the assets. Total (10 marks) (20 marks)
The recoverable amount of the business was determined to be K9.8 million. Additionally, a competitor offered to purchase the patent for K1.5 million. We need to allocate the impairment loss among the assets of Sharon.
To allocate the impairment loss among Sharon's assets, we need to determine the carrying value of each asset and compare it with its recoverable amount. Here's how the allocation can be done:
1. Plant and Equipment Impairment: The plant and equipment that were destroyed by the fire and had to be scrapped will incur the full impairment loss. The carrying value of the destroyed plant and equipment is K1.2 million, which matches the impairment loss.
2. Intangible Asset Impairment: The remaining intangible asset, which is the license to operate Sharon's plant and equipment, is not specifically mentioned to be impaired. Therefore, we assume there is no impairment loss allocated to this asset.
3. Allocation of Remaining Impairment Loss: After accounting for the impairment loss related to the destroyed plant and equipment, there is a remaining impairment loss of K8.6 million (K9.8 million - K1.2 million). This loss needs to be allocated among the remaining assets.
Since there is no information provided about the carrying values of other assets such as receivables and cash, we cannot determine the exact allocation of the remaining impairment loss. The allocation would depend on the relative carrying values of these assets and their respective recoverable amounts.
To summarize, the impairment loss is allocated fully to the destroyed plant and equipment, while the remaining impairment loss would be allocated to the other assets based on their relative carrying values and recoverable amounts. Without the specific values, we cannot provide a precise breakdown of the allocation.
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Do electronic Accounting Information Systems pose more of a threat to customer privacy than paper-based systems?
Select one:
No because the data cannot be read by a human.
Yes, because organisations always sell the data onto marketing companies.
No because there are laws that protect the privacy of customers.
Yes, because organisations can collect more data about more people than ever before.
Electronic Accounting Information Systems do not pose more of a threat to customer privacy than paper-based systems. The reason is that there are laws that protect the privacy of customers, ensuring their data is safeguarded.
Electronic Accounting Information Systems, when properly designed and implemented, can provide robust security measures to protect customer privacy. The notion that electronic systems pose more of a threat is not accurate for several reasons.
Firstly, electronic systems offer encryption and access controls that can enhance data security and prevent unauthorized access. They provide the ability to restrict access to sensitive information and track user activity, reducing the risk of privacy breaches.
Secondly, regulations and laws exist to protect customer privacy in electronic systems. For example, laws like the General Data Protection Regulation (GDPR) in Europe and similar regulations in other jurisdictions outline strict guidelines for organizations to handle customer data securely and ensure privacy rights are upheld.
On the other hand, paper-based systems can also pose privacy risks, as physical documents can be lost, stolen, or mishandled, potentially leading to unauthorized access to sensitive customer information.
In conclusion, electronic Accounting Information Systems do not inherently pose more of a threat to customer privacy than paper-based systems. Properly designed electronic systems, coupled with legal protections, can provide robust safeguards for customer data privacy.
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Your company manufacture cars and light trucks. Your strategic thinkers believe there is a strong market for motorcycles. Build a House of Quality examining the feasibility of your company undertaking this new strategic direction.
The House of Quality analysis will assess the feasibility of a car and light truck manufacturing company entering the motorcycle market. This analysis will evaluate key factors such as customer needs, competition, technical capabilities, and financial considerations to determine the viability of this strategic direction.
The House of Quality is a tool used in product development to align customer needs with technical requirements. In this case, it will be applied to assess the feasibility of entering the motorcycle market. The analysis will start by identifying customer needs and desires regarding motorcycles, such as performance, design, affordability, and reliability. These factors will be compared to the company's current technical capabilities to determine if there are any gaps that need to be addressed.
Next, the House of Quality will examine the competitive landscape in the motorcycle market, identifying major players, market trends, and potential opportunities or threats. This will help determine if the company can differentiate itself and gain a competitive advantage.
Financial considerations, including investment costs, potential revenue, and profitability, will also be assessed to determine if entering the motorcycle market is financially viable.
By conducting a comprehensive House of Quality analysis, the company can evaluate the feasibility of entering the motorcycle market and make informed decisions based on customer needs, technical capabilities, competition, and financial factors. This analysis will provide valuable insights to guide strategic planning and determine if pursuing this new direction is a viable and profitable opportunity for the company.
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Problem 1. Andy is a partner in the ABO partnership (Andy, Barney and Otis). Under the partnership agreement Andy is entitled to $10,000 each year for his services, which are ordinary in nature and performed in his capacity as a partner. Andy’s share of the partnership’s profits and losses, after deduction of the services payment, is one third. For 2020 the partnership's income, before deduction of the $10,000 payment to Andy, consisted of $4,000 of ordinary income and $15,000 of long-term capital gain. Andy and the partnership use the calendar year as their taxable years. Andy is a cash method taxpayer, and the partnership uses the accrual method. Determine partnership taxable income for 2020 and Andy's distributive share. (b) When is the $10,000 included in Andy's gross income if it is paid to him on January 3, 2021? (c) How does Andy's entitlement to the $10,000 and the payment of this sum affect the basis of his interest?
In 2020, the partnership's taxable income is calculated by deducting Andy's services payment from the total income, resulting in $19,000 ($4,000 ordinary income + $15,000 long-term capital gain). Andy's distributive share of the partnership's profits and losses, after deducting the services payment, is one third of this taxable income, which amounts to $6,333. For tax purposes, the $10,000 payment to Andy for his services will be included in his gross income in the year it is received, which in this case is 2021. Andy's entitlement to the $10,000 payment does not directly affect the basis of his interest in the partnership.
To determine the partnership's taxable income for 2020, we start with the total income before deducting Andy's services payment. The partnership earned $4,000 of ordinary income and $15,000 of long-term capital gain, totaling $19,000. However, Andy is entitled to receive $10,000 each year for his services, which is considered an ordinary payment. Therefore, we deduct this amount from the total income, resulting in a taxable income of $9,000 ($19,000 - $10,000).
Andy's distributive share of the partnership's profits and losses is determined based on his ownership interest, which is one third. So, his distributive share of the partnership's taxable income is one third of $9,000, amounting to $3,000.
Moving on to the timing of when the $10,000 payment is included in Andy's gross income, we consider that Andy is a cash method taxpayer. According to the cash method, income is recognized when it is received. Therefore, if Andy receives the $10,000 payment on January 3, 2021, it will be included in his gross income for the tax year 2021.
Lastly, Andy's entitlement to the $10,000 payment does not directly affect the basis of his interest in the partnership. The basis of Andy's interest is typically determined by the amount of his capital contributions and his share of partnership profits or losses. The $10,000 payment for services is separate from his partnership interest and does not impact the calculation of his basis.
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Amy is the project manager for a finance software project for a reputed bank. She
wants to know what kind of information she should provide to different stakeholders and
what methods to adopt for this purpose. She will find this information in the
Communications management plan
Performance reports
Project records
Communications plan
To determine what kind of information to provide to different stakeholders and the methods to adopt for effective communication, Amy can refer to the following project documents:
Communications Management Plan: This document outlines the overall approach and strategy for project communication. Performance Reports: These reports provide updates on the project's progress, performance, and status. They include information on key milestones achieved, budget and schedule variances, risks, issues, and any other relevant metrics. Project Records: These records consist of various project-related documentation, including meeting minutes, project schedules, risk registers, change logs, and lessons learned.Communications Plan: This is a subset of the Communications Management Plan and provides specific details on how communication will be carried out for each stakeholder or stakeholder group.Amy can tailor her communication efforts to meet the specific needs of different stakeholders, ensuring the timely and appropriate flow of information, and fostering stakeholder engagement and satisfaction.
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If Coca-Cola hires students to pass out its new product to patrons in the parking lot outside of Pepsi Arena without permission, it is engaged in
a. prospecting
b. ambush marketing
c. business-to-business exchange
d. direct marketing
If Coca-Cola hires students to pass out its new product to patrons in the parking lot outside of Pepsi Arena without permission, it is engaged in ambush marketing.
Ambush marketing is a marketing strategy in which a company attempts to associate its brand with a big event without being an official sponsor or obtaining permission from the event's organizers. This marketing technique is often used by companies that do not have the funds or resources to become official sponsors of an event, but still want to benefit from its exposure.
Ambush marketing can take many forms, including placing ads or logos in strategic locations, handing out branded merchandise or free samples, or sponsoring events or activities that are tangentially related to the main event. It is considered unethical and illegal in many cases, as it involves taking advantage of the hard work and resources of the event's organizers without compensating them or obtaining their permission.
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Hofstede’s five dimensions on which culture differs include all of the following except a. Uncertainty avoidance b. Masculinity-femininity c. Performance orientation d. Long-term-short-term orientation
Hofstede's five dimension of culture power distance, individualism collectivism, masculinity-femininity, uncertainty avoidance, and long-term-short-term orientation. Performance orientation is not one of the dimensions.
Hofstede's cultural dimensions framework is widely used to understand and compare cultural differences across different societies. It provides insights into how cultures vary in terms of their values, beliefs, and behaviors. The five dimensions proposed by Hofstede are power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, and long-term-short-term orientation.
Power distance refers to the extent to which a society accepts and expects unequal power distribution. Individualism-collectivism examines the emphasis on individual goals versus group goals. Masculinity-femininity refers to the values and roles associated with traditional masculine and feminine qualities.
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Sonia, a tourist from the United Kingdom plans to buy a laptop in Singapore that costs 1,200 Singapore dollars. If the exchange rate between Singapore dollar ($) and British pound (£) is 0.5£/$, calculate the amount of pounds Sonia requires to exchange for the purchase.
(A) £1,800
(B) £1,200
(C) £600
(D) £200
To calculate the amount of pounds Sonia requires to exchange for the purchase of a laptop in Singapore, we will multiply the cost of the laptop by the exchange rate between the Singapore dollar ($) and the British pound (£).Option C (£600) is the correct option.
The cost of the laptop = 1,200 Singapore dollars.
Exchange rate of Singapore dollar ($) to British pound (£) = 0.5£/$
Multiplying both the cost of the laptop and the exchange rate of Singapore dollar ($) to British pound (£) together,
we get;1,200 × 0.5 = £600
Therefore, the amount of pounds Sonia requires to exchange for the purchase of the laptop is £600.Option C (£600) is the correct option.
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Two delivery options are available for delivering 50 boxes. The annual holding cost is 24 % of the cost. Assume 365 days per year. 2-day delivery option costs $300 while 6-day delivery option costs $100. Determine a minimum unit cost for a box for which 2-day delivery alternative would be least costly?
a.
506.9
b.
1014
c.
1521
d.
760.4
The minimum unit cost for a box, for which the 2-day delivery option would be least costly, is $10.138. This is determined by comparing the costs per box for the 2-day and 6-day delivery options, with the former having the lowest cost per box.
To determine the minimum unit cost for a box for which the 2-day delivery option would be least costly, we need to compare the costs of the two delivery options.
Given
Number of boxes (n) = 50
Annual holding cost = 24% of the cost
2-day delivery cost = $300
6-day delivery cost = $100
365 days per year
Let's calculate the total cost for each delivery option
2-day delivery cost:
Total cost = (2-day delivery cost) + (annual holding cost * 2-day delivery cost * n / 365)
Total cost = $300 + (0.24 * $300 * 50 / 365)
6-day delivery cost:
Total cost = (6-day delivery cost) + (annual holding cost * 6-day delivery cost * n / 365)
Total cost = $100 + (0.24 * $100 * 50 / 365)
To find the minimum unit cost for a box, we need to compare the total costs of the two delivery options. The option with the lower total cost per box would be the least costly option.
Let's calculate the total costs per box for each option
2-day delivery cost per box = Total cost / n
6-day delivery cost per box = Total cost / n
Now, we can calculate and compare the costs per box for each option:
2-day delivery cost per box = (Total cost of 2-day delivery) / n
6-day delivery cost per box = (Total cost of 6-day delivery) / n
We choose the option with the lower cost per box.
Given the answer choices provided, we'll calculate the costs per box for each option and compare them
a. 2-day delivery cost per box = (Total cost of 2-day delivery) / n = ($506.9) / 50 = $10.138
b. 6-day delivery cost per box = (Total cost of 6-day delivery) / n = ($1014) / 50 = $20.28
c. 6-day delivery cost per box = (Total cost of 6-day delivery) / n = ($1521) / 50 = $30.42
d. 2-day delivery cost per box = (Total cost of 2-day delivery) / n = ($760.4) / 50 = $15.208
Comparing the costs per box, we see that the option with the lowest cost per box is option "a" with a cost of $10.138. Therefore, the minimum unit cost for a box for which the 2-day delivery option would be least costly is $10.138.
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When a particular model of car is known to explode when in an accident, it's what type of defect?
Multiple Choice
O Manufacturing
O Design
O Exclusionary
O Warning
The correct answer is: O Design.
When a particular model of car is known to explode when in an accident, it is a design defect. Design defects refer to flaws or faults in the design of a product that make it unreasonably dangerous or prone to harm. In this case, the design of the car has a fundamental flaw that leads to the risk of explosion during accidents.
Here's an explanation of the other options:
- Manufacturing: Manufacturing defects occur when errors or issues arise during the production or assembly of a product, resulting in a defective individual unit. Manufacturing defects are specific to certain products and are not inherent design flaws.
- Exclusionary: Exclusionary defects are not a recognized category of product defects. This option does not apply to the given scenario.
- Warning: Warning defects occur when a product lacks appropriate warnings or instructions regarding potential hazards or proper usage. While a lack of warning about the explosion risk could be an issue, the primary concern in this scenario is the design flaw that causes the explosion.
Therefore, the defect in the scenario described, where a car model is known to explode during accidents, would be categorized as a design defect.
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Which of these are corporate entrepreneurial efforts that lead to
new business organizations within the corporate
organization?
Corporate entrepreneurial efforts that lead to new business organizations within the corporate organization are known as corporate venturing or corporate entrepreneurship.
Corporate venturing can take various forms, including internal startups, strategic alliances, joint ventures, and corporate spin-offs. Internal startups involve the establishment of new business units or divisions within the existing corporate structure, allowing for the exploration of new markets or technologies. Strategic alliances and joint ventures involve collaborating with external partners to create new ventures that leverage the expertise and resources of both parties. Corporate spin-offs occur when a company separates a portion of its business to create a new, independent entity.
These corporate entrepreneurial efforts aim to foster innovation, enter new markets, and capitalize on emerging trends or technologies. By creating new business organizations within the corporate structure, companies can adapt to changing market conditions, expand their product or service offerings, and potentially generate additional revenue streams. Corporate venturing allows established companies to embrace entrepreneurial practices, take calculated risks, and explore new growth opportunities while leveraging their existing resources, knowledge, and market presence.
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