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    Identify the bottleneck

    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

    Incremental Analysis

    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

    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

    Elasticity of demand: Making cookies example

    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?

    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

    EBIT and Leverage

    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

    Duval Corporation: Calculating Higher EPS and Break-Even EBIT

    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

    Bodger Ltd: calculate break-even point, profit levels

    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

    Financing foreign operations - tax considerations

    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

    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

    Calculate the Standard and Actual Quantities and Variances

    On May 1, 2003 Goodman Company began the manufacture of a new mechanical device known as "Dandy'. The company installed cost system in accounting for manufacturing costs. The standard cost for a unit of "Dandy' are as follows: Raw Materials 6 lbs @ $1 per lb. $6.00 DL 1 hour @ $4/ hr 4.00 OH

    Compute: DM, DL, Variable OH, and Fixed OH variances

    The controller of a company which manufactures home-permanent kits has just received the following final production reports and cost figures for the month of May: Standard Costs: DM: 4 ounces @ $.50/ounce------------------------------- $2.00 DL: 1/10 of an hour @ $7.50/hour-------------------------- .75 VOH: 1/10 * $15

    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

    BUSINESS ANALYSIS

    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

    BUSINES ANALYSIS/ACCOUNTING

    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

    BUSINESS ANALYSIS/ ACCOUNTING

    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

    Accounting/ business analysis

    The following information is available regarding the total manufacturing overhead of Peterson Company for a recent four month period. Direct Labor Manufacturing Hours Overhead May 90,000 $213,000 June 100,000 227,000 July 70,000 185,000 August 80,000 199,000 1. Refer to the above information. Using the high-low method,

    Tax factors

    Whelan Pharmaceuticals, a U.S. company with $3 billion in sales, must decide where to manufacture its newest product. In considering possible sites, both foreign and U.S., the firm must identify and make trade-offs between tax, marketing, and manufacturing factors. what tax issues are relevant in to this company which site

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