Sold to wholesalers for $80 per pair. Because of availability capacity, no additional fixed charges will be incurred to produce the skis. A $100,000 fixed charge will be absorbed by the skis, however, to allocate a fair share of the company's present fixed costs to the new product. Using the estimated sales and production of
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
A portfolio is made up of 75% of stock 1 and 25% of stock 2. Stock 1 has a variance of .08 and Stock 2 has a variance of .035. The covariance between the stocks is -.001. Calculate the variance & standard deviation of this portfolio and please explain your work.
Attached is the case, please help with the question. 1. (Do not do any computations) Comment on Narnia's pricing strategy 2. Assume competitors' prices prevail in the market. What should Narnia'a strategy be?
Attached is a case study, please help solve the question below. 1. Assume Narnia sells no A, 1 million B and 2 million C. Prepare a CM segmented income statement. 2. Redo assuming 1 million of each product.
54,000 units per year at $8 per unit 360 day-per year basis $90 cost to place a single order $3 to carry on unit in inventory one year lead-time % of occurrence 6 75 7 10 8 5 9 5 10 5 Company willing to assume 15% risk of being out of stock what is the safety stock...what is the reo
FIN/554 class: 1. Brealey, Chapter 15, page 429, Challenge Question 3 Here is recent financial data on Pisa Construction. Stock Price: $40 Market value of firm: $400,000 # of Shares: 10,000 Earnings per share: $4 Book net worth: $500,000 Return on Investment: 8% Pisa has not performed spectacularly to date. However,
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
Canoe Company has two products. In the past, Canoe has averaged sales of four standard models at a price of $250 and one deluxe model at a price of $750 each day. Variable costs total $75 for the standard model and $200 for the deluxe model. If fixed costs are $281,250, how many canoes must be sold in order for the company to br
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 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:
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
Attached is the case study. Questions: What are the advantages of one alternative over the other? Which action would you favor?
See attachment for company information. Thanks. (a) State five assumptions which are made when preparing break-even charts. State one limitation of each assumption. (b) Using marginal costing, calculate the net profit if i) 7500 units are produced and sold; ii) 9000 units are produced and sold. (c) Calculate the num
Hello, Attached is a case study and I just need help in answering two questions: What are the advantages of one alternative over the other? Which action would you favor? ** See ATTACHED file(s) for complete details **
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
Deb Samson is the owner of a company that produces glass products, suh as shower doors, table tops, and specialty windows for recreational vehicles. The process involves cutting glass into the proper shape, smoothing the edges, heat treating, and packaging. The cutting process is automated and very rapid; two minutes are requi
If an incremental analysis looks like this: Reject Accept Net Income Order Order Increase(Decrease) Revenues Costs Net Income How do I go about solving this problem? Do I need to worry about Margin per unit/dollars? Carter Co
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
Determine the missing amounts... Please see attached for full question.
Can you help me get started with this assignment? Income increase from 13000 to 17000. Cookies demand increased by 15% and the demand for peanut butter chips decreased by 10%. I have to calculate the income demand for the cookies and the peanut butter chips. How do I begin to solve this problem?
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
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
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
EBIT and Leverage. Big Apple, Inc., has no debt outstanding and a total market value of $80,000. Earnings before interest and taxes, EBIT, are projected to be $10,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be
Break-Even EBIT. Duval Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Duval would have 600,000 shares of stock outstanding. Under Plan II, there would be 300,000 shares of stock outstanding and $10 million in debt outstanding. The interest rat
Please help with the following problems. Provide step by step calculations for each. Year Stock A's Returns (rA) Stock B's Returns (rB) 2000 -18% 14.5 2001 33 21.8 2002 15 30.5 2003 -0.5
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
Please work problems; formula and showing how to solve problem is most important (so I can see how to solve similar problems). Thanks Suppose Navistar's Canadian subsidiary sells 1,500 trucks monthly to the French affiliate at a transfer price of $27,000 per unit. Assume that the Canadian and French marginal tax rates on co
The Cash account in the ledger of Home-Builders Co. shows a balance of $16,526 at September 30. The bank statement, however, shows a balance of $20,900 at the same date. The only reconciling items consist of a bank service charge of $6, a large number of outstanding checks totaling $5,930, and a deposit in transit. 1. Refer t