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Gain sharing system and key trends

Question: What are the objectives of the gainsharing system and the report on key trends? The objectives of the Gain Sharing system is to provide extrinsic motivation, rewards that are external to the individual and unrelated to the task they are performing. In addition, the employees have an incentive to perform above par a


You observe the following information regarding Company X and Company Y: ? Company X has a higher expected mean return than Company Y. ? Company X has a lower standard deviation than Company Y. ? Company X has a higher beta than Company Y. Given this information, which of the following statements is most correct? a. Co

Accounting Problems

Please help check and correct my accounting problems: Analysis of Case Liquid Chemical Company Questions and Problems for Consideration 1. Given the two alternatives do the work inside or subcontract it to Packages Ltd? 2. What are the advantages of one alternative over the other? 3. Which action would you favor?

Samson Enterprises: Allocate costs using the step-down method

Samson Enterprises uses the step-down method to allocate service department costs to revenue-producing departments. The support departments, personnel and janitorial, allocate their costs based on the number of employees and departmental square footage, respectively. Relevant data are presented as follows:

Accounting Problems: 1. Paulson Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year... (questions continued in attachment)

Please see attached file for complete details: 1. Paulson Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Paulson estimated that 40,000 direct labor hours and 20,000 machine hours would b

Basic financial analysis

Just need some help on several questions on basic financial analysis. I have an idea about how to do it but I want to make sure I'm heading in the right direction! Questions (also attached Excel file for the data): D. Calculate the 2005 debt, times-interest earned and EBITDA coverage ratios. How does this company compare

EBIT and EPS Calculations for Mattel

If Mattel engaged in a capital acquisition program that expected to improve EBIT by 10% in 2004. How do I calculate the EBIT/EPS for debt financing. How do I calculate the EBIT/EPS for equity financing. Based on the above calculations what would be the best capital structure. Please explain and let me know where to f

Transfer pricing

SportCo, Inc. is a multidivisional company that produces and sells athletic equipment. Division 1 produces components for a variety of products, while Division 2 assembles the components and packages the finished product. Both divisions are free to buy and sell internally or externally. For a particular soccer ball, the cost

Textron Industries: residual income, ROI, evaluate a plant expansion opportunity

Lakeesha Roberts is a successful division manager for Textron Industries. Her division's ROI currently is 22%. Roberts is evaluating a plant expansion opportunity that is expected to produce an annual income of $500,000 and require an investment of $3,000,000. The corporation's cost of capital is 12%. a. If Roberts' perfo

Evaluating a Business: Andre's Hair Styling

Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Assume that the only

Business Analysis

Bodger Ltd. has been in the business of buying and selling washing machines for some years, but has decided to look at the possiblity of manufacturing its own brand... (a) Calculate, to the nearest whole number, the break-even point in units and in value for options 2 and 3. (b)Calculate which of the three options is most

Taxes; Life Insurance; Family Maintenance Fund; Needs Approach

Sue and Tom Wright are assistant professors at the local university. They each take home about $40,000 per year after taxes. Sue is 37 years of age, and Tom is 35. Their two children, Mike and Karen, are 13 and 11. Were either one to die, they estimate that the remaining family members would need about 75% of the present comb

Compute DM, DL and OH (4-WAY).

Mayol Company produces widgets with following standard costs per unit: DM (3 lb @ 70/lb)---- $2.10 DL (2 hrs @ $3.50/hrs)---$7.00 Variable OH (2 hrs @ $.50/hr)---1.00 Fixed OH (2 hours @ $2.50/hr)---5.00 Normal monthly production is 7,100 units. During August, the company manufactured 6,950 units. 25,000 lbs of DM wer


1. In the year-end financial statements, the Manufacturing Overhead account should have: a. A debit balance, representing overhead on hand and available for use. b. A credit balance, representing accumulated depreciation and amounts owed to suppliers of overhead items. c. Either a debit or a credit balance, depending upon


Use the following to answer questions 1-4: Shown below are selected data from the balance sheet of Ames Hardware, a small retail store (dollar amounts are in thousands): Cash $20 Accounts receivable 100 Inventory 195 Total assets 450 Current liabilities 150 Non-current liabilities 120 1. Refer to the above data. Ames' d


1. Newby Corporation's 2000 net income is smaller than net cash flow from operating activities. Which of the following would not be an explanation of why net income is smaller than net cash flow from operating activities? a. Newby paid dividends to shareholders during 2000. b. Newby's accounts payable increased during 2000.

Accounting/ business analysis

1. Tandem Corporation issued 200,000 shares of $2 par value capital stock at date of incorporation for cash at a price of $7 per share. During the first year of operations, the company earned $80,000 and declared a dividend of $25,000. At the end of this first year of operations, the balance of the Common Stock account is:

Tax factors

Using the case below, please help with the following questions: What tax factors are relevant to Whelan Pharmaceuticlas in deciding where to manufacture Varex? Which country is favored in site selection? What are the non tax factors? Should the sourcing committee choose Ireland or continental Europe? Where should Whe

Accounting/business analysis

Use the following to answer questions 1-2. The following information is from the manufacturing budget and budgeted financial statements of Pinecove Industries: Direct materials inventory, 1/1 $104,000 Direct materials inventory, 12/31 128,000 Direct materials budgeted for use during year 400,000 Accounts payable to supplie

Business analysis: Baker Company, Boggs Corporation, Stellar Corporation

1. Baker Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for $15 and has a contribution margin of $4. If product X is discontinued, $56,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Baker Company's other products. I

Accounting/business analysis

Malachite Company produces a single product. The selling price is $30 per unit, and variable costs amount to $21 per unit. Malachite's fixed costs per month total $45,000. 1. Refer to the above information. What is the contribution margin ratio of Malachite's product? a. 70%. b. 42.9%. c. 30%. d. 18%. 2. Refer to the ab