The payback period on Popeye's purchase of a new pleasure boat is 5.2 years. This means that it will take 5.2 years for the cash flows from the boat to recoup the initial investment.
The payback period is calculated by dividing the initial investment by the annual cash flows. In this case, the initial investment is $9,100,000 and the annual cash flows are
$3,200,000 + $2,400,000 + $2,200,000 + $4,300,000 + $3,100,000 + $3,100,000 = $18,300,000. So, the payback period is:
Payback period = $9,100,000 / $18,300,000 = 5.2 years
Therefore, the payback period on Popeye's purchase of a new pleasure boat is 5.2 years.
It is important to note that the payback period is a simple metric that does not take into account the time value of money. This means that the actual return on investment may be higher or lower than the payback period suggests.
Learn more about cash flows here; brainly.com/question/27994727
#SPJ11
the allows a company to use an invention developed by an employee on its premises, using company resources, without payment of royalties.
The term that allows a company to use an invention developed by an employee on its premises, using company resources, without payment of royalties is known as the "shop right doctrine."
What is the Shop Right Doctrine?The shop right doctrine is a legal principle that allows an employer to use an employee's invention without compensating them when the employee made the invention on the job or using the company's resources, or equipment. The doctrine allows the employer to use an employee's invention but doesn't give them any ownership rights to the invention.The doctrine only allows the employer to use the invention to advance their business interest and cannot transfer the ownership of the invention. It does not mean the employer will have exclusive rights to the invention.
An employee can still patent the invention and license it to other companies.What are the benefits of the Shop Right Doctrine?The shop right doctrine provides several benefits to both the employer and the employee. For example, it helps employers to avoid legal issues with employees over ownership rights of inventions developed during employment, thus saving them money and time spent on litigation. It also encourages employees to develop inventions that advance the company's interests because it provides them with job security and an opportunity to work on innovative projects.
To know more about payment visit:
https://brainly.com/question/29475683
#SPJ11
The Sourdough Bread Company provides the following de Click the icon to view the additional data) The Sourdough Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of standard direct manufacturing labor-hours. Following is some budget dette for the Sourdough Bread Company (Click the icon to view the budget data) Read the forements Requirement 1. What is the denominator level used for allocating variable manufacturing overhead?
The denominator level used for allocating variable manufacturing overhead is the standard direct manufacturing labor hours in the Sourdough Bread Company.Variable manufacturing overhead is the indirect costs of manufacturing a product, and it is incurred in the manufacturing process.
The company allocates these costs to products on the basis of the standard direct manufacturing labor hours.The Sourdough Bread Company has two direct-cost categories which are direct materials and direct manufacturing labor.
The company bakes baguettes for distribution to upscale grocery stores. In order to allocate variable manufacturing overhead, the company uses standard direct manufacturing labor hours, which are calculated based on the expected labor required to manufacture a product.
The denominator level used for allocating variable manufacturing overhead is the standard direct manufacturing labor hours. This denominator level is used to allocate variable manufacturing overhead, which is an indirect cost, to the products manufactured by the company.
To know more about overhead, refer to the link:
https://brainly.com/question/28528644#
#SPJ11
(Compounding using a calculator and annuities due) Suppose that 7 years ago Alfa Simpson invested $1,000,000 at a 5 percent annual interest rate. If he invests an additional $20,000 a year at the beginning of each year for 15 years at the same 5 percent annual rate, how much money will Alfa have 15 years from now?
To calculate the future value of Alfa's investments after 15 years, we need to consider the initial investment of $1,000,000 and the annual additional investment of $20,000 made at the beginning of each year.
First, let's calculate the future value of the initial investment of $1,000,000 after 15 years at a 5 percent annual interest rate using compound interest formula: Future Value = Principal * (1 + Interest Rate)^Time Future Value = $1,000,000 * (1 + 0.05)^15 Future Value = rate, $1,000,000 * (1.05)^15 Future Value = $1,000,000 * 1.938653915 Future Value = $1,938,653.92 (rounded to the nearest cent) Next, let's calculate the future value of the annual additional investment of $20,000 made at the beginning of each year for 15 years using the formula for the future value of an ordinary annuity: Future Value = Annual Payment * ((1 + Interest Rate) Finally, we add the future value of the initial investment to the future value of the annual additional investments to get the total future value: Total Future Value = $1,938,653.92 + $391,223.34 Total Future Value = $2,329,877.26 (rounded to the nearest cent) Therefore, Alfa will have approximately $2,329,877.26 after 15 years.
learn more about investments here:
https://brainly.com/question/33249865
#SPJ11
A bond has a modified duration of 3.25, and is currently priced
at $1,050. What would be the price of the bond if interest rates
decreased by 0.5%?
If interest rates decreased by 0.5%, the price of the bond would increase.
The price of a bond is inversely related to interest rates. When interest rates decrease, the present value of future cash flows from the bond increases, leading to a higher bond price.
The modified duration of 3.25 indicates that for every 1% change in interest rates, the bond's price would change by approximately 3.25%. Therefore, with a 0.5% decrease in interest rates, we can expect a price increase. Using the formula for price change based on modified duration and the change in yield, the price change would be $16.81. Adding this price change to the current bond price of $1,050, we arrive at a new bond price of approximately $1,066.81.
To know more about bond visit-
https://brainly.com/question/31994049
#SPJ11
The pay-offs on the left, (non-bold, regular) refer to Firm 1
The pay-offs on the right (bolded, italics) refer to Firm 2.
Assuming Firm 1 and Firm 2 are both rational profit-maximizers and that choices are irreversible (i.e., a firm cannot switch strategies), which of the following statements is not true?
O If they make the decision in an ordered manner, the first-mover has an advantage
O There is no Nash Equilibrium in this game
O In any case, at least one company regrets its decision
O Firm 2 does not have a dominated strategy
The statement that is not true is "There is no Nash Equilibrium in this game." The option 2 is correct answer.
The first-mover advantage implies that the firm making the initial decision has the opportunity to set the terms of competition and potentially gain an advantage over its rival. This advantage stems from being able to secure more favorable outcomes before the second firm acts, making the statement "If they make the decision in an ordered manner, the first-mover has an advantage" true.
In this scenario, there is a Nash Equilibrium, which refers to a state where neither firm has an incentive to unilaterally deviate from its chosen strategy. A Nash Equilibrium occurs when both firms have made their decisions and are satisfied with their outcomes. Therefore, the statement "There is no Nash Equilibrium in this game" is not true.
Regardless of the strategy chosen by each firm, it is possible that at least one company will regret its decision. This is because the payoffs are not symmetrical, and the preferences of the firms may lead to situations where one firm would have been better off choosing a different strategy. Hence, the statement "In any case, at least one company regrets its decision" is true.
Firm 2 may not have a dominated strategy, which means there is no strategy that strictly performs worse for Firm 2 regardless of Firm 1's choice. This implies that Firm 2 has viable options and can make a decision based on its own strategic considerations. Therefore, the statement "Firm 2 does not have a dominated strategy" is true.
Learn more about Equilibrium here:
https://brainly.com/question/31534615
#SPJ11
Summarize how the 2015 Grady Hospital payroll fraud was
perpetrated.
The 2015 Grady Hospital payroll fraud was perpetrated by manipulating the hospital's payroll system through the use of fraudulent overtime and bonus payments, resulting in the theft of approximately $2.3 million.
What does this scheme involve?The scheme involved collusion between hospital employees, including the hospital's chief financial officer (CFO), and outside contractors who provided services to the hospital.The fraudulent activity took place over a period of several years, with employees submitting false overtime and bonus requests and the CFO approving the payments without proper oversight or review. The contractors involved in the scheme would then receive a portion of the fraudulent payments in exchange for their cooperation.The fraud was discovered during a routine internal audit, which identified a number of irregularities in the payroll system. Following an investigation, the employees involved in the scheme were terminated and criminal charges were filed against them.The hospital also implemented new procedures to prevent future payroll fraud, including increased oversight and auditing of payroll transactions and more stringent controls on bonus and overtime payments.
To know more on Fraud visit:
https://brainly.com/question/33138375
#SPJ11
In the analysis of life data in the context of Weibull modelling, a sample of components was tested after several hours of exposure under a high temperature to see if they still worked. At the end of the experiment, a small number of units had failed, and the remaining units still worked.
i. What kind of life data are we dealing with? Explain what is meant by the censored data and identify its different types by outlining their features.
ii. Explain the role of the hazard rate function and demonstrate what it's used for.
iii. Discuss how the hazard rate function of a typical mechanical system varies over time and outline its three different life phases (try to visualise with the help of a sketch).
i. In this scenario, we are dealing with censored life data. Censored data occurs when the full failure time or event time is not observed for all the units in the sample. It arises when some units have not failed by the end of the study or when the study is terminated before all units have failed. Censored data provides partial information about the failure times.
There are three types of censored data:
1. Right-censored data: In right-censored data, the failure times for some units are known to be greater than a specific time or event. These units are still functioning or have not experienced the event of interest by the end of the study. Right-censored data can occur when the study ends, or when units are lost to follow-up.
2. Left-censored data: In left-censored data, the failure times for some units are known to be less than a specific time or event. These units have already failed or experienced the event of interest before the study started, and their failure times are known to be less than the starting time of the study.
3. Interval-censored data: In interval-censored data, the failure times for some units are known to fall within specific intervals, but the exact failure times are unknown. Interval-censored data occurs when the failure times are known to be within certain time intervals but are not observed exactly.
ii. The hazard rate function plays a crucial role in survival analysis and the analysis of life data. It represents the instantaneous rate at which failures occur at a particular time, given that the unit has survived up to that time. The hazard rate function is denoted by λ(t) or h(t).
The hazard rate function is used to model the failure or event times in survival analysis. It helps estimate the probability of failure at a specific time interval, given the survival of the unit up to that point. It provides insights into the failure behavior of the system over time and allows for the prediction of future failures.
iii. The hazard rate function of a typical mechanical system can exhibit different patterns over time, leading to three distinct life phases:
1. Infant mortality phase: In the early phase of a mechanical system's life, the hazard rate function is relatively high. Failures tend to occur due to manufacturing defects, initial wear and tear, or other early-life issues. The hazard rate decreases over time as these issues are resolved or eliminated.
2. Normal life phase: In the normal life phase, the hazard rate remains relatively constant over time. The system operates within its designed parameters, and failures occur randomly due to normal wear and tear or external factors. The hazard rate is relatively low and stable during this phase.
3. Wear-out phase: As the mechanical system ages, the hazard rate increases gradually. Wear and tear, fatigue, or degradation of components start to have a more significant impact, leading to an increasing likelihood of failures. The hazard rate eventually reaches a point where the system becomes unreliable or uneconomical to maintain.
A sketch representing these three life phases would show a high hazard rate at the beginning (infant mortality phase), a relatively constant hazard rate during the middle (normal life phase), and a rising hazard rate towards the end (wear-out phase). The exact shape of the hazard rate curve may vary depending on the specific characteristics of the mechanical system being studied.
To know more about uneconomical, visit:
https://brainly.com/question/30195127
#SPJ11
For the utility function U:U(x,y)=[x2/3+y2/3]1.5 :
Obtain the marginal utility functions, MUX and MUγ.
The marginal utility functions are:
MUX = (x^(2/3) + y^(2/3))^(1/2) * x^(-1/3)
MUY = (x^(2/3) + y^(2/3))^(1/2) * y^(-1/3). To obtain the marginal utility functions MUX and MUY for the given utility function U(x, y) = (x^(2/3) + y^(2/3))^1.5, we need to differentiate the utility function with respect to each variable separately.
First, let's find the marginal utility function MUX by differentiating U(x, y) with respect to x while treating y as a constant:
MUX = ∂U/∂x = ∂/∂x [(x^(2/3) + y^(2/3))^1.5]
= 1.5(x^(2/3) + y^(2/3))^(1.5-1) * ∂/∂x [(x^(2/3) + y^(2/3))]
= 1.5(x^(2/3) + y^(2/3))^(1/2) * (∂/∂x [x^(2/3)] + ∂/∂x [y^(2/3)])
To find ∂/∂x [x^(2/3)], we can apply the power rule of differentiation:
∂/∂x [x^(2/3)] = (2/3)x^(-1/3)
Since y is treated as a constant, ∂/∂x [y^(2/3)] is zero.
Substituting these values into the equation for MUX:
MUX = 1.5(x^(2/3) + y^(2/3))^(1/2) * ((2/3)x^(-1/3) + 0)
= (3/2)(x^(2/3) + y^(2/3))^(1/2) * (2/3)x^(-1/3)
= (x^(2/3) + y^(2/3))^(1/2) * x^(-1/3)
Similarly, we can find the marginal utility function MUY by differentiating U(x, y) with respect to y while treating x as a constant:
MUY = ∂U/∂y = ∂/∂y [(x^(2/3) + y^(2/3))^1.5]
= 1.5(x^(2/3) + y^(2/3))^(1.5-1) * ∂/∂y [(x^(2/3) + y^(2/3))]
= 1.5(x^(2/3) + y^(2/3))^(1/2) * (∂/∂y [x^(2/3)] + ∂/∂y [y^(2/3)])
Using the power rule of differentiation, ∂/∂y [y^(2/3)] = (2/3)y^(-1/3).
Substituting these values into the equation for MUY:
MUY = (x^(2/3) + y^(2/3))^(1/2) * y^(-1/3)
Therefore, the marginal utility functions are:
MUX = (x^(2/3) + y^(2/3))^(1/2) * x^(-1/3)
MUY = (x^(2/3) + y^(2/3))^(1/2) * y^(-1/3)
These expressions represent the rate at which the utility changes with respect to changes in x and y, respectively, for the given utility function.
Learn more about marginal utility functions here:
brainly.com/question/32786227
#SPJ11
From the information below calculate the break-even units"
Selling price per unit $20
VC per unit $8
Fixed Manufacturing Overhead cost $150,000
Fixed Selling & Admin Costs $90,000
The break-even point is 20,000 units.
To calculate the break-even units, we need to determine the total fixed costs and the contribution margin per unit. The break-even point occurs when the total contribution margin equals the total fixed costs.
Given information: Selling price per unit = $20 Variable cost per unit = $8 Fixed manufacturing overhead cost = $150,000 Fixed selling and administrative costs = $90,000
First, let's calculate the contribution margin per unit: Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin per unit = $20 - $8 = $12
Next, let's calculate the total fixed costs: Total fixed costs = Fixed manufacturing overhead cost + Fixed selling and administrative costs Total fixed costs = $150,000 + $90,000 = $240,000
Now, we can calculate the break-even units using the following formula: Break-even units = Total fixed costs / Contribution margin per unit Break-even units = $240,000 / $12 = 20,000 units
To know more about break even points visit:
https://brainly.com/question/29749058.
#SPJ11
Assume the South Africa economy is going through a downturn and policy makers are considering whether to adopt an increase in government spending or a decrease in taxes by an equivalent amount. The increases in government spending will have a larger impact on equilibrium income because:
a. the government prints the Rands it spends. b. not all of the tax cut is spent. c. when taxes are cut, so too is government spending. d. taxes are an injection into the system.
An increase in government spending will lead to an:
a. a higher equilibrium income and lower aggregate spending. b. have no effect on equilibrium spending or income. c. an unchanged multiplier, increase in aggregate spending and equilibrium income d. have an unpredictable effect on equilibrium income.
The increase in government spending will have a larger impact on equilibrium income compared to a decrease in taxes by an equivalent amount because when taxes are cut, not all of the tax cut is spent. This is option (b).
When taxes are cut, individuals have the choice to either spend the additional income or save it. Some portion of the tax cut is likely to be saved rather than spent, resulting in a lower multiplier effect and a smaller impact on aggregate spending and equilibrium income.
On the other hand, when the government increases its spending, the entire amount is injected into the economy, leading to a larger increase in aggregate spending and equilibrium income.
Therefore, the correct option is (b) - an increase in government spending will have a larger impact on equilibrium income compared to a decrease in taxes by an equivalent amount.
An increase in government spending will lead to option (c) - an unchanged multiplier, increase in aggregate spending, and equilibrium income. The multiplier effect determines how much additional income is generated from a change in government spending.
When government spending increases, it stimulates aggregate demand, leading to higher equilibrium income. The multiplier remains unchanged in this scenario, as it is determined by the marginal propensity to consume and the marginal propensity to save.
To learn more about, equilibrium:-
brainly.com/question/517289
#SPJ11
Why might a medical professional choose to employ a holding company? Select all that apply.
Review Later A)To hold surplus assets, that are creditor-protected
B)To use as a business for active income
C) or estate planning purposes
D)To have control over the timing of future disbursements
A medical professional may choose to employ a holding company for multiple reasons, including holding creditor-protected surplus assets, utilizing it as a business for active income, and for estate planning purposes. Control over the timing of future disbursements is another potential motivation.
A) Holding Surplus Assets: A medical professional may opt to use a holding company to hold surplus assets that are creditor-protected. By placing assets within a separate entity, they can safeguard them from potential creditors in case of legal or financial issues.
B) Business for Active Income: A holding company can be utilized as a business entity for generating active income. By structuring their medical practice or related activities under a holding company, medical professionals can separate their personal income from business income, potentially benefiting from tax planning strategies and liability protection.
C) Estate Planning Purposes: Employing a holding company can serve estate planning goals. By transferring assets and ownership of the medical practice or related ventures to the holding company, medical professionals can effectively plan for the distribution of their wealth, facilitate succession planning, and potentially reduce estate taxes.
D) Control over Timing of Disbursements: Having a holding company allows medical professionals to have more control over the timing of future disbursements. They can choose when to distribute income or dividends from the holding company to themselves or other beneficiaries, aligning it with their financial goals or tax planning strategies.
In summary, a medical professional may employ a holding company to hold creditor-protected surplus assets, utilize it as a business for active income, facilitate estate planning objectives, and maintain control over the timing of future disbursements. Each of these reasons provides unique advantages and considerations for medical professionals in managing their financial affairs.
Learn more about financial goals or tax here:
https://brainly.com/question/4449209
#SPJ11
How has the export of primary products (food, fiber, and energy) shaped the economies of Latin America?
The export of primary products, including food, fiber, and energy, has had a significant impact on the economies of Latin America. It has shaped these economies by contributing to foreign exchange earnings, employment, and economic growth.
The export of primary products has been a fundamental component of Latin America's economy for centuries. Countries in the region are rich in natural resources, including agricultural land, minerals, and energy sources. The export of food products such as coffee, soybeans, fruits, and beef, along with fiber products like cotton and timber, has been a major source of foreign exchange earnings for many Latin American countries. Additionally, the export of energy resources like oil, gas, and minerals has played a significant role in the economic development of some nations.
These exports have contributed to job creation and income generation, particularly in rural areas where agriculture and extraction industries are concentrated. They have also fueled economic growth and government revenue through taxes and royalties. However, reliance on the export of primary products has its challenges. Fluctuations in global commodity prices can lead to boom and bust cycles, impacting the economic stability of these countries. Moreover, the focus on primary product exports can hinder efforts to diversify the economy, promote innovation, and develop higher value-added industries. To mitigate the risks associated with primary product exports, some Latin American countries have pursued strategies to promote value-added processing, agribusiness, and renewable energy sectors.
Learn more about economic growth from here:
https://brainly.com/question/33072899
#SPJ11
If a publicly traded company wants to serve its stockholders, its main goal should be to Ensure that the stock's intrinsic value is maximized over the long term. Maximize the predicted total income for the business. Reduce the likelihood of losses. Maximize the stock price on a particular target date. Maximize anticipated EPS for the company.
The main goal of a publicly traded company, in serving its stockholders, should be to ensure that the stock's intrinsic value is maximized over the long term. This includes maximizing predicted total income for the business and reducing the likelihood of losses.
The primary responsibility of a publicly traded company is to serve its stockholders by maximizing the value of their investments. This is achieved by ensuring that the stock's intrinsic value is maximized over the long term. Intrinsic value refers to the underlying worth of the stock based on factors such as the company's financial performance, growth potential, and market position.
To maximize intrinsic value, companies should focus on two key aspects. Firstly, they should aim to maximize predicted total income for the business. This involves generating sustainable and profitable revenue streams through effective business operations, strategic decision-making, and market positioning. By consistently delivering positive financial performance, the company enhances its intrinsic value and attracts potential investors.
Secondly, reducing the likelihood of losses is crucial. This involves implementing risk management strategies, maintaining financial stability, and ensuring sound corporate governance practices. By mitigating potential risks and minimizing losses, the company can protect the stockholders' investments and maintain long-term value.
Learn more about stock's here:
https://brainly.com/question/31940696
#SPJ11
Which of the following statements is not a valid reason for Australian investors to consider incorporating foreign markets into their portfolios.
Select one:
A.
Investments in foreign markets are less likely to default.
B.
Ignoring foreign markets reduces their choices of investment opportunities.
C.
Returns on non-Australian investments can substantially exceed returns for Australian securities.
D.
Foreign markets have low correlations with Australian markets.
The statement that is not a valid reason for Australian investors to consider incorporating foreign markets into their portfolios is: A. Investments in foreign markets are less likely to default. Statement A is not a valid reason because default risk alone does not provide sufficient justification for Australian investors to consider incorporating foreign markets into their portfolios.
Statement A suggests that investments in foreign markets are less likely to default. While it is true that investing in foreign markets can offer diversification benefits and potentially reduce default risk, it is not a valid reason on its own for Australian investors to consider incorporating foreign markets into their portfolios.
Default risk is a factor that should be considered alongside other important investment considerations such as potential returns, market correlations, and diversification benefits. The other statements (B, C, and D) provide more compelling reasons for Australian investors to consider incorporating foreign markets.
Therefore, A is not a valid reason because default risk alone does not provide sufficient justification for Australian investors to consider incorporating foreign markets into their portfolios.
Learn more about foreign markets here:
brainly.com/question/30226446
#SPJ11
List and explain the four main triggers of conflict in the workplace. (16 points)
The four main triggers of conflict in the workplace are differences in communication styles, conflicting goals and interests, limited resources, and personality clashes.
Conflict is an inevitable part of any workplace, and understanding its triggers can help in managing and resolving it effectively. The first trigger is differences in communication styles. People have varying ways of expressing themselves, and when these styles clash, misunderstandings and conflicts can arise. For example, one person may prefer direct and assertive communication, while another may be more indirect and passive. These differences can lead to misinterpretations, frustration, and conflicts.
The second trigger is conflicting goals and interests. In a workplace, individuals and departments may have different objectives and priorities. When these goals clash or are not aligned, it can create tension and competition, leading to conflicts. For instance, if two teams are working towards different deadlines or have conflicting ideas about how to approach a project, it can result in disagreements and conflicts.
Limited resources form the third trigger of workplace conflicts. When resources such as time, budget, or manpower are scarce, it can lead to conflicts as individuals or teams compete for these limited resources. For example, if two departments are vying for the same budget allocation or if there is insufficient staff to handle workload demands, conflicts may arise.
The fourth trigger is personality clashes. Each person has a unique personality with different strengths, weaknesses, and preferences. When individuals with incompatible personalities are forced to work together, conflicts can emerge. Personality clashes can arise from differences in work styles, values, or simply from incompatible personalities. These conflicts can disrupt teamwork, communication, and overall productivity.
Learn more about: Conflict
brainly.com/question/32663176
#SPJ11
The monitoring step in the portfolio management process involves monitoring:
a) changes in the investor goals, financial position, risk tolerance etc.
b) expectations regarding markets and/or individual securities
c) both (a) and (b)
d) neither (a) nor (b)
Answer:
The monitoring step in the portfolio management process involves monitoring both changes in the investor's goals, financial position, risk tolerance, and other relevant factors (option a), as well as expectations regarding markets and/or individual securities (option b).
Explanation:
The monitoring step in the portfolio management process involves monitoring both changes in the investor's goals, financial position, risk tolerance, and other relevant factors (option a), as well as expectations regarding markets and/or individual securities (option b).
Monitoring changes in the investor's goals, financial position, and risk tolerance is important to ensure that the portfolio remains aligned with the investor's objectives and risk preferences. This involves assessing any changes in the investor's circumstances, such as changes in income, expenses, or investment time horizon, and adjusting the portfolio accordingly.
Additionally, monitoring market conditions and individual securities is crucial for evaluating the performance and prospects of the investments held in the portfolio. This includes analyzing market trends, economic indicators, company fundamentals, and other factors that may impact the value and performance of the securities.
Therefore, the correct answer is option c) both (a) and (b).
Learn more about the portfolio management here: brainly.com/question/33063147
#SPJ11
Wexpro, Incorporated, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $53,000 per ton, one-fourth of which is allocated to product X15. Seven thousand units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $16 each, or processed further at a total cost of $8,600 and then sold for $21 each.
Required:
1. What is the financial advantage (disadvantage) of further processing product X15 ?
2. Should product X15 be processed further or sold at the split-off point?
1. The financial advantage or disadvantage of further processing product X15 can be determined through incremental analysis.
Incremental analysis, also known as differential analysis, is a method of analyzing the cost and revenue changes that occur as a result of a business decision, such as whether or not to process a product further. When deciding whether or not to process a product beyond the split-off point, incremental analysis is useful as it assists in determining whether processing beyond the split-off point is advantageous.
The incremental analysis follows these four basic steps:
Identifying the alternatives that are available to the company,
Identifying the costs and revenues associated with each alternative,
Computing the incremental revenue or cost for each alternative,
Identifying the alternative that is most beneficial to the company.
Therefore, the financial advantage of further processing product X15 can be determined by calculating the incremental revenue from processing.
($21/unit − $16/unit) × 7,000 units = $35,000
The incremental revenue from further processing is $35,000, which is greater than the processing cost of $8,600; therefore, there is a financial advantage to processing product X15 further.
2. Product X15 should be processed further since the incremental revenue from further processing is greater than the processing cost.
To know more about incremental revenue, click here
brainly.com/question/13032804
#SPJ11
,with a greater understanding of OB, managers are better able to predict, and thus, ________ the behavior of employees to accomplish organizational goals
In forming a valid contract, it is important that the person who enters into the contract must have full capacity in terms of age and mind. This means the person, who has not reached the age of majority or is of unsound mind, cannot make a valid contract. Discuss the above statement by referring to relevant cases and provisions of the relevant Act. Do you agree with the principle discussed? (20m)
The statement regarding the requirement of full capacity in forming a valid contract is generally accurate, as it is a fundamental principle of contract law. The person entering into a contract must have the legal capacity to do so, which typically means being of the age of majority and having a sound mind.
Regarding age, minors (persons who have not reached the age of majority) generally lack the legal capacity to enter into binding contracts. The rationale behind this rule is to protect minors from potentially entering into unfair or disadvantageous agreements. There are exceptions, however, such as contracts for necessaries or contracts approved by the minor's guardian or the court.
In terms of unsound mind, individuals who are mentally incapacitated or lack the ability to understand the nature and consequences of a contract may also be deemed lacking the capacity to contract. This protects vulnerable individuals from being taken advantage of due to their mental condition.
Relevant cases supporting this principle include Nash v. Inman (1908) and Thompson v. Palmer (1933), among others, which upheld the requirement of capacity in forming valid contracts.
I agree with the principle discussed as it provides a necessary safeguard in contractual relationships, ensuring fairness and protecting vulnerable individuals who may not be capable of fully understanding the implications of their actions.
To know more about valid contract click this link-
https://brainly.com/question/6491012
#SPJ11
2). The market of jeans. In a given market, there are some buyers that are willing to buy a pair of jeans and some sellers that also desire to sell their production of jeans. The market demand is given as follows: 3 • 10 buyers have a valuation of £40 in their pockets. • 15 buyers have a valuation of £25 in their pockets. • 10 buyers have a valuation of £18 in their pockets. And the market supply is given as follows: • 5 sellers have production costs of £30 per pair of jeans produced. • 21 sellers have production costs of £19 per pair of jeans produced. • 9 sellers have production costs of £10 per pair of jeans produced. Hence, in total we have 70 people taking part of the market, equally divided between buyers and sellers. a) Plot the supply and demand graph. (9 points) b) What is the market equilibrium? (Price and quantity equilibrium). (5 points) c) Is this equilibrium Pareto Optimal? Why? (2 points) d) Now suppose that those sellers with higher production costs drop the market. Plot the new supply and demand graph. (9 points)
a) The supply and demand graph for the market of jeans can be plotted based on the given information about buyers' valuations and sellers' production costs. b) The market equilibrium is determined by the intersection of the supply and demand curves, representing the price and quantity at which the market clears. c) The Pareto Optimality of the equilibrium depends on whether it satisfies the conditions of efficiency and fairness, which need further analysis. d) If sellers with higher production costs drop the market, a new supply and demand graph can be plotted based on the remaining sellers' production costs and the original demand.
a) To plot the supply and demand graph, we can represent the quantity of jeans on the x-axis and the price on the y-axis. The demand curve can be drawn by summing the quantities demanded at each valuation, resulting in a downward sloping curve.
The supply curve can be drawn by summing the quantities supplied at each production cost, resulting in an upward sloping curve. The graph will illustrate the interaction between supply and demand.
b) The market equilibrium occurs at the point where the supply and demand curves intersect. At this point, the quantity of jeans demanded by buyers matches the quantity supplied by sellers. The corresponding price at the equilibrium represents the market-clearing price, where there is no excess supply or demand.
c) Whether the equilibrium is Pareto Optimal depends on whether it satisfies the conditions of efficiency and fairness. Pareto Optimality occurs when no individual can be made better off without making someone else worse off.
To determine if the equilibrium is Pareto Optimal, we need to assess whether there are any potential gains from trade left unexploited or if any participant can be made better off without harming others.
d) If sellers with higher production costs drop the market, a new supply curve needs to be plotted based on the remaining sellers' production costs. The demand curve remains the same.
The new equilibrium will be determined by the intersection of the updated supply and demand curves, indicating the new market-clearing price and quantity in the absence of the sellers with higher production costs.
Learn more about valuation here:
https://brainly.com/question/31873089
#SPJ11
nderstanding Cen Z Consumer Behavior: HEAT LUXURY MYSTERY BOX At the start of 2022, luxury mystery box start-up, HEAT, announced a mind-blowing \$5-million seed round from Antler and LVMH Ventures. The company, which was launched in 2019, also gained the attention of the fashion industry when thcy disclosed that other investors backing their expansion included the Hermes family, Sven Aherns (of Spotify), Stefano Ross (of OTB), just to name a fow. That the big players are paying attention says a lot about the remarkable success and potential of the mystery box concept. It also indicates that perhaps, this new disruptive model could also be the answer to many of the industry's current challenges. The communications team of HEAT writes: "The model was created as a solution to within the fashion eco-system to protect brand values and act as intermediary within the market, allowing brand to re-allocate stock to Gen- Z consumers through a mystery box model. HEAT was founded on an understanding that the fashion industry needs sustainable innovation." Consumers from the Gen-Z demographic are the prime drivers of sales for HEAT. As a brand created, developed and built by 20 -something founders Joe Wilkinson and Mario Maher, HEAT understands what makes the young consumer tick. Joe, who is the company's CEO, explains: "Our audienee is predominantly Gen- Z and so is the team that built HEAT."He notes that those who are between the ages of 18 to 24 are typically more open to trying out different shopping models. "It's about experiences as much as transactions now-and the mystery box provides that. The excitement of opening it, the social share-ability of unboxing content and item reviews. It's about being part of the community and the interaction between that community as much as it's about the product." As far as mystery boxes go, there's really no telling what you'll get. From the point of view of someone who actually know who Forrest Gump is, it's like a box of chocolates. Decoding and deciphering flavors fit for a young market can be quite the balancing act. Joe expounds: "When we partnered only with retailers, we worked with them to handpick stock, which we thought was cool. Now we work with brand directly, curating our boxes around the trends in the market." Luxury brands that have filled the much-coveted HEAT Luxury Mystery Boxes include: Alexander McQueen, Off-White, JW Anderson, Maison Kitsune, Maisie Wilen, Nanushka, MMissoni, By Far, just to name a few. Every mystery box from HEAT comes with a retum and exchange policy. And while tastes and preferences may vary widely, the company has only had a return rate of below 15%. Most online retailers have to deal with at return rate of least 40% "We're very selective with the product we put in the boxes, and make sure that every box we send, we'd be happy to receive ourselves. We also make sure that our brand partners understand that our boxes are a premium service and not a channel to offload stock." The HEAT promise, which the company has thus far upheld is that each box will contain luxury items "way beyond the value of what their paying for. Since it launched two years ago, HEAT has grown its community to 600,000 . The company has sold over 20,000 luxury boxes and more than 100,000 individual units of stock. Its performance, apart from drawing in substantial funding from key players, is telling of the future of retail. Joe affirms, "We are here to disrupt the traditional approach to luxury fashion. We'll be using this investment to create innovative and immersive e-commerce experiences implementing gamification, Al-driven personalization, and interactive drops all whilst driving sustainability." Relevant examples must be given in relation to the case studies.
(a) Explain TWO (2) strategies that can be used by marketers to increase consumers attention toward HEAT products. Include relevant examples to support your answer.
To increase consumer attention towards HEAT products, marketers can employ the following strategies:
1 ) Influencer Marketing:
Collaborating with influential individuals, especially those popular among the Gen-Z demographic, can significantly boost brand visibility and attract consumers' attention. Marketers can partner with fashion influencers or content creators who have a substantial following and align with HEAT's target audience. These influencers can showcase the luxury mystery boxes, create unboxing videos, and share their positive experiences with their followers. By leveraging the influencers' credibility and reach, HEAT can generate buzz, increase brand awareness, and drive consumer interest.
2) User-Generated Content Campaigns:
Encouraging customers to share their experiences with HEAT products through user-generated content (UGC) campaigns can be an effective way to capture consumer attention. UGC not only fosters engagement and authenticity but also leverages the power of social proof, as recommendations and reviews from real customers carry significant weight.
Learn more about marketers here : brainly.com/question/14418904
#SPJ11
Many companies have moved toward a strategic planning approach with a (more, less)
Many companies have moved toward a strategic planning approach with a more comprehensive perspective.Strategic planning is the process of developing a business's goals and defining the steps and resources required to achieve those goals.
It is a management tool that aids in the alignment of the company's activities with its objectives. It's essential to recognize the differences between strategic planning and operational planning. Strategic planning is a high-level activity that sets a company's strategic objectives and priorities, while operational planning is concerned with setting priorities, allocating resources, and managing operational activities on a regular basis.Many businesses have turned to strategic planning because it allows them to see the big picture and make informed decisions about where they want to go and how they will get there. Furthermore, strategic planning aids in the alignment of resources and efforts with company goals, allowing for greater effectiveness and efficiency in achieving objectives. Thus, it can be concluded that many companies have moved toward a strategic planning approach with a more comprehensive perspective.
To know more about business: https://brainly.com/question/18307610
#SPJ11
SOR-350 Inc. is a manufacturing company. It has received a special order for 10,000 units of its product TK-15. The normal selling price of one unit of TK-15 is $68 and its unit product cost is $20 as shown below:
Direct materials $8.00
Direct labor $2.00
Manufacturing overhead $10.00
Unit product cost $20.00
The company's manufacturing overhead cost is mostly fixed. Only 30% of manufacturing overhead varies with the number of units of TK-15 produced. The special order will require customizing the TK-15s for an additional direct materials cost of $5 per unit and an additional direct labor cost of $4 per unit. If SOR-350 accepts the special order, the company will have to lease special equipment at a cost of $110,000 to do the customization. The company has sufficient excess capacity, and the special order would not affect the company's regular production and sales.
What is the minimum (i.e., the break-even) sales price that the company should charge per unit of the customized TK-15 for this special order?
The minimum (break-even) sales price that SOR-350 Inc. should charge per unit of the customized TK-15 for the special order is $37.
The break-even sales price, we need to consider the additional costs associated with the special order.
The unit product cost for the regular TK-15 is $20. However, for the customized TK-15, there are additional costs of $5 for direct materials and $4 for direct labor.
The manufacturing overhead cost is mostly fixed, with only 30% varying with the number of units produced. Since the special order does not affect regular production and sales, we can exclude the fixed portion of manufacturing overhead from the calculation.
To cover the additional costs and the lease cost of the special equipment, we need to determine the contribution margin per unit required.
Contribution margin per unit = Selling price per unit - Variable costs per unit
The variable costs per unit for the customized TK-15 are:
Additional direct materials cost: $5
Additional direct labor cost: $4
Therefore, the contribution margin per unit = $68 - $5 - $4 = $59.
To cover the lease cost of $110,000, the number of units needed to break even is:
Break-even quantity = Lease cost / Contribution margin per unit
Break-even quantity = $110,000 / $59 ≈ 1,864 units
Since the company received a special order for 10,000 units, it can cover the lease cost by selling these units.
The minimum (break-even) sales price per unit is:
Break-even sales price per unit = (Additional costs per unit + Variable costs per unit) / Break-even quantity
Break-even sales price per unit = ($110,000 / 10,000) + ($5 + $4) ≈ $11 + $9 = $20
However, the company still needs to cover the regular unit product cost of $20. Therefore, the minimum sales price per unit of the customized TK-15 for this special order should be $20 + $20 = $37.
learn more about sales click here;
brainly.com/question/29436143
#SPJ11
If a computer (5-year property) is purchased for $100, depreciation expense for the first 2 years would be calculated as follows:
- Year 1=$100×1/5 yrs ×200%=$40×1/2 (half-year convention) =$20 depreciation expense in the 1st year
- Year 2=$100 - $20 yr 1 depreciation =$80×1/5 yrs ×200%=$ depreciation expense in the 2nd year
O $20
O $40
O $16
O $32
The correct answer for the depreciation expense in the second year would be $16.
Depreciation expense for the first 2 years of a computer (5-year property) purchased for $100 would be calculated as follows:
Year 1: $100 × 1/5 yrs × 200% = $40 × 1/2 (half-year convention) = $20 depreciation expense in the 1st year.
To calculate the depreciation expense for the second year, we need to subtract the depreciation expense from the first year ($20) from the initial cost of the computer ($100). Therefore, the remaining value is $100 - $20 = $80.
Year 2: $80 × 1/5 yrs × 200% = $16 depreciation expense in the 2nd year.
To know more about depriciation;
https://brainly.com/question/33107231
#SPJ11
Use the three-circle model to discuss the USP of Xiaomi and one of its closest competitors? What are the industry standards and white space in the smartphone market? What will be your three strategic recommendations to Xiaomi’s CEO to maintain its leadership position?
Xiaomi's unique selling proposition (USP) can be analyzed using the three-circle model, which compares the company's offering with that of its closest competitor. Industry standards and white space within the smartphone market also play a crucial role. To maintain its leadership position, three strategic recommendations can be made to Xiaomi's CEO.
Xiaomi's USP lies in its ability to provide high-quality smartphones with advanced features at competitive prices. Its closest competitor, Samsung, focuses on a combination of premium features, brand reputation, and a wide product range. Xiaomi's USP differentiates itself by offering affordable smartphones without compromising on quality and performance.
In the smartphone market, industry standards encompass features and specifications that customers have come to expect from a smartphone, such as a high-resolution display, powerful processors, ample storage, and quality cameras. White space refers to untapped or underexplored areas in the market where companies can differentiate themselves and gain a competitive advantage.
To maintain its leadership position, Xiaomi's CEO should consider the following strategic recommendations:
1. Continuous Innovation: Xiaomi should invest in research and development to stay ahead of technological advancements, introducing new features and innovations that set its products apart from competitors.
2. Focus on International Expansion: Xiaomi should continue expanding its presence in global markets, especially emerging economies, where there is significant growth potential and less competition.
3. Enhance Brand Image and Customer Experience: Xiaomi should invest in marketing efforts to strengthen its brand image and create a strong emotional connection with customers. Additionally, the company should prioritize customer experience by offering excellent after-sales support and services.
By following these strategic recommendations, Xiaomi can maintain its leadership position by staying innovative, expanding its market reach, and delivering exceptional customer experiences.
learn more about leadership here: brainly.com/question/32010814
#SPJ11
Which of the following are stakeholders and have a contract with an entity:
(i) Shareholders;
(ii) Bank lenders;
(iii) Bondholders;
(iv) The Internal Revenue Service (IRS).
a.(ii) and (iii)
b.(i) and (iii)
c.(i) and (iv)
d.None of the listed answers
e.All of the listed answers
Shareholders and the IRS do not have a contractual relationship with an entity, while bank lenders and bondholders have a contract with the entity, outlining their rights and obligations. Therefore, the correct answer is: b (i) and (iii)
Stakeholders are individuals or entities that have an interest or stake in an organization. They can be affected by the organization's activities and decisions. In the given options, shareholders and bondholders are stakeholders who have a contract with an entity.
(i) Shareholders: Shareholders are individuals or entities who own shares of a company's stock. By purchasing shares, shareholders become partial owners of the company and have a contractual relationship with the company through their ownership of shares.
(iii) Bondholders: Bondholders are individuals or entities that hold bonds issued by a company. Bonds represent debt obligations of the company, and bondholders lend money to the company in exchange for regular interest payments and the repayment of the principal amount at maturity. Bondholders have a contractual relationship with the company through the bond agreement.
(ii) Bank lenders: Bank lenders are not listed as having a contract with an entity. While bank lenders provide loans to entities, their relationship is typically governed by loan agreements rather than a direct contract with the entity.
(iv) The Internal Revenue Service (IRS): The IRS is a government agency responsible for collecting taxes. While the IRS has a regulatory relationship with entities regarding tax compliance, it does not have a direct contractual relationship with an entity.
Shareholders and bondholders are stakeholders who have a contract with an entity. Bank lenders and the IRS do not have a direct contractual relationship with an entity, as stated in option b. Therefore, option b, "(i) and (iii)," is the correct answer.
To know more about stakeholders visit:
https://brainly.com/question/15532995
#SPJ11
Assume that Merryland’s Markets had an inventory balance of $32 570 at the close of the last accounting period. The following sales and purchase transactions are for the current period. Consider GST. 1. Purchased goods on account for $27 190. 2. Returned part of the above purchase that had an original purchase price of $1590. 3. Paid for the balance of the purchase in time to receive a discount of 2% of the purchase price. 4. Sold goods costing $24 900 for $49 820. Cash of $23 000 was received, with the balance due on account. 5. Goods sold on credit for $2023 (cost $1010) were returned.
Required 1. In two columns (side-by-side), prepare general journal entries assuming: i. a periodic inventory system is used. ii. a perpetual inventory system is used. 2. Suppose that a physical count of the inventory at the end of the current period shows inventory of $30 000 to be on hand. Present the entries (if any) required under each inventory system to adjust for any discrepancy. Comment on which system would best disclose any discrepancy.
Based on the provided information, the following journal entries would be made to record the sales and purchase transactions, considering GST:
Purchased goods on account for $27,190:
Date: [Date of Purchase]
Inventory $27,190
Accounts Payable $27,190
The Inventory account is debited for the cost of the goods purchased, which is $27,190. The Accounts Payable account is credited as the purchase is made on account.
Returned part of the purchase with an original price of $1,590:
Date: [Date of Return]
Accounts Payable $1,590
Inventory $1,590
The Accounts Payable account is debited to reduce the payable amount by $1,590. The Inventory account is credited to remove the cost of the returned goods from the inventory balance.
Paid for the balance of the purchase with a 2% discount:
Date: [Date of Payment]
Accounts Payable $25,686.20
Cash $26,137.02
Inventory $450.82
The Accounts Payable account is debited for the remaining payable amount after deducting the discount of 2%, which is $25,686.20. The Cash account is credited for the payment made, which is $26,137.02 (the original amount minus the discount received). The Inventory account is credited for the discount amount, which is $450.82.
Sold goods for $49,820, with $23,000 received in cash and the balance due on account:
Date: [Date of Sale]
Accounts Receivable $26,820
Sales Revenue $49,820
Cost of Goods Sold $24,900
Inventory $24,900
Cash $23,000
Accounts Receivable $23,000
The Accounts Receivable account is debited for the total amount to be collected, which is $26,820 ($49,820 - $23,000 received in cash). The Sales Revenue account is credited for the total sales amount. The Cost of Goods Sold account is debited for the cost of goods sold, which is $24,900. The Inventory account is credited to reduce the inventory balance by the cost of goods sold. The Cash account is debited for the cash received, which is $23,000. The Accounts Receivable account is also credited for the same amount, representing the balance due from the customer.
Goods sold on credit for $2,023 (cost $1,010) were returned:
Date: [Date of Return]
Sales Returns and Allowances $2,023
Accounts Receivable $2,023
Inventory $1,010
Cost of Goods Sold $1,010
The Sales Returns and Allowances account is debited for the returned goods' selling price, which is $2,023. The Accounts Receivable account is credited for the amount returned. The Inventory account is debited to increase the inventory balance by the cost of the returned goods, which is $1,010. The Cost of Goods Sold account is credited for the same amount to reverse the initial cost entry.
These journal entries properly record the inventory-related sales and purchase transactions, taking into account the GST and other applicable considerations. It is important to consult with an accounting professional or refer to relevant accounting standards for precise guidance specific to the company's circumstances.
to know more about inventory balance .click this link-
brainly.com/question/31028972
#SPJ11
Suppose, Bangla Link Telecom Company plans to issue a bond with 15 years of maturity to arrange a new fund for installing a 5G network across the country. The return of this bond will be adjusted with IP, MRP, DRP, and Rf. The adjustment will be as follows: IP of 1st year is 3.5%, 2nd year 4.5%, and 3 years and beyond is 6.5%.; rate of return of 0.1% to calculate MRP; LP 1%; DRP 1.5%; and the risk-free rate is 3.5%. What will be the rate of Bangla Link bonds after 15 years?
The rate of Bangla Link bonds after 15 years will be 13.9%.
The rate of Bangla Link bonds after 15 years is given below:
Calculation of Rate of Return:
Let us calculate the Rate of Return (ROR) with the help of the formula mentioned below:
ROR = IP + MRP + DRP + LP + Rf
Where, IP is the Inflation premium, MRP is the Maturity risk premium, DRP is the Default risk premium, LP is the Liquidity risk premium, Rf is the Risk-free rate.
Now, we will calculate the Inflation premium for the first year.
Inflation Premium:
IP of the 1st year = 3.5%Let us calculate the Inflation premium for the second year.
IP of the 2nd year = 4.5%
For 3 years and beyond, the inflation premium is 6.5%.
We can calculate the Maturity risk premium with the help of the formula mentioned below:
MRP = 0.1 * (T - 1) Where, T is the time to maturity,
MRP = 0.1 * (15 - 1) = 1.4%
The default risk premium is given as follows:
DRP = 1.5%
The Liquidity risk premium is given as follows:
LP = 1%
The risk-free rate is given as follows:
Rf = 3.5%
The Rate of Return (ROR) can be calculated using the formula mentioned below:
ROR = IP + MRP + DRP + LP + Rf= 6.5% + 1.4% + 1.5% + 1% + 3.5%= 13.9%
The rate of Bangla Link bonds after 15 years will be 13.9%.
To learn more about Rate of Return visit:
https://brainly.com/question/1789817
#SPJ11
Historically, the most active and well-known accounting standard setting body in the world is: a. the Asian-Oceanian Standard Setters Group (AOSSG) b. the Financial Accounting Standards Board (FASB) c. the International Accounting Standards Board (IASB) d. the European Financial Reporting Advisory Group (EFRAG)
The most active and well-known accounting standard-setting body in the world is the International Accounting Standards Board (IASB). The correct answer is option C.
The International Accounting Standards Board (IASB) is an independent standard-setting body responsible for developing and issuing International Financial Reporting Standards (IFRS).
It was established in 2001 and operates under the oversight of the International Financial Reporting Standards Foundation (IFRS Foundation). The IASB's primary objective is to develop high-quality global accounting standards that are suitable for use in the preparation of financial statements of publicly accountable entities.
The IASB's standards are designed to provide transparent, comparable, and reliable financial information that assists investors, creditors, and other users in making informed economic decisions. These standards cover a wide range of financial reporting topics, including revenue recognition, leases, financial instruments, and accounting for business combinations.
The IASB collaborates with national standard-setting bodies, regulators, and other stakeholders to ensure the global acceptance and implementation of IFRS. The widespread adoption of IFRS promotes consistency and comparability in financial reporting across different countries, facilitating international investment and financial analysis.
While other accounting standard-setting bodies, such as the Financial Accounting Standards Board (FASB) in the United States or the European Financial Reporting Advisory Group (EFRAG) in Europe, play significant roles in their respective regions, the IASB stands out as the most active and well-known accounting standard-setting body due to its global reach and influence.
To know more about investors, click here-
brainly.com/question/25311149
#SPJ11
The actual selling expenses incurred in March 2022 by Sarasota Company are as follows.
Variable Expenses
Fixed Expenses
Sales commissions $11,880 Sales salaries $37,800
Advertising 7,452 Depreciation 7,560
Travel 5,508 Insurance 1,080
Delivery 3,726
Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, travel 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $37,800, Depreciation on delivery equipment $7,560, and insurance on delivery equipment $1,080.
(a) Prepare a flexible budget performance report for March, assuming that March sales were $183,600. (List variable costs before fixed costs.)
(b) Prepare a flexible budget performance report, assuming that March sales were $194,400. (List variable costs before fixed costs.)
In both scenarios, a flexible budget performance report is prepared to evaluate the actual selling expenses incurred by Sarasota Company in March 2022.
The flexible budget takes into account the variable costs as a percentage of sales and the fixed costs that remain constant regardless of sales. In scenario (a), with sales of $183,600, the variable expenses are calculated by multiplying the respective percentages to the sales amount. The fixed expenses remain the same. The total expenses are obtained by summing up the variable and fixed expenses. In scenario (b), with sales of $194,400, the calculations are performed similarly. The variable expenses increase due to the higher sales amount, while the fixed expenses remain unchanged.
Learn more about selling expenses here:
https://brainly.com/question/32075364
#SPJ11