freJHJSBJH Case : Bill French The Workings have been attached in the following Excel Sheet : Q1) Assumptions : | | | | 1) He has done the calculation using Average Figures of Product A, B & C. [Cooper's Concern] | 2) He also assumed that the ratio of Products A,B & C will remain constant next year. [Cooper's Concern] | 3) There would be no increase in Fixed assets/Fixed costs | | 4) There would be no change in Salary Structure and other variable costs | 5) There would be no change in the Dividend policy of the company | 6) When represented graphically, the behaviors of total revenues and total costs are linear in relation to units sold in a time period | 7) Selling price, variable cost per unit and total fixed costs are known and constant | Q2) Break even analysis by considering individual products A) Not taking into account Union Demand i.e no effect on Variable Cost | | Product A | Product B | Product C | Sales at Full Capacity | 2,000,000 | | | | | | | | | Actual Sales volume | 1,750,000 | 400,000 | 400,000 | 950,000 | Unit Sales price | 1.158857143 | 1.67 | 1.5 | 0.8 | Total sales revenue | 2028000 | 668000 | 600000 | 760000 | Variable Cost/Unit | 0.564285714 | 1.25 | 0.625 | 0.25 | Total Fixed Cost | 640000 | 170000.0000 | 275000.0000 | 195000.0000 | | | | | | Net Profit | 400500 | -2000 | 75000 | 327500 | Tax(0.5) | 200250.0000 | | | | Profit After tax | 200250.0000 | | | | Ratio | | | | | Variable Cost to Sales | 0.4869 | 0.7485 | 0.4167 | 0.3125 | Variable Income to Sales | 0.5131 | 0.2515 | 0.5833 | 0.6875 | Utilization of Capacity | 0.8750 | 0.2 | 0.2 | 0.4750 | B) Taking into Account Union Demand i.e. Variable Cost increases by 10% Sales at Full Capacity | 2,000,000 | | | | | | | | | Actual Sales
The RD&I Division sold a production quality control service, on contract, to the other divisions at variable cost plus 10% and also contracted externally. RD&I was given a budget appropriation, for researching new products, which was not included in the calculation of its ROI. John Big's objective in decentralizing the corporate structure was to make each division operate and be evaluated as if it were an independent business. Corporate overhead was allocated to the divisions on the basis of a percentage of sales. The division managers were each allowed to make annual investments of not more than 5% of their divisional net assets on their own authority.
Homework Week 3 7. Differentiate between the following: active income, passive income, and portfolio income. Active income( which is interchangable with earned income) comes from direct efforts of the taxpayer. Examples is wages, salaries, and commissions. Passive Income is income that is earned through a trade or investments where the taxpayer does not spend much time or effort.
• Management may be spread too thin – All managers were pressed by the requirements of everyday business. • Management group works informally with a minimal amount of structured reports and controls. • Overall, mgmt. appears stretched very thin – may lead to stagnant innovation, employment turnover, etc. • Specialty manufacturers in the international market are succeeding – domestic manufacturers not innovating • Manufacturing system is run primarily on estimates and requires constant change – possible use for a JIT inventory system?
(TCO 3) As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in (Points : 5) Question 4.4. (TCO 8) A company keeps 60 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 30 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. The value-added costs are (Points : 5) Question
decrease 4. Did the inspiratory reserve volume increase, decrease, or not change with exercise? decrease 5. Did the inspiratory capacity increase, decrease, or not change with exercise? No change 6.
In Experiment 2, explain why the membrane potential between the axon hillock and axon either changed or did not change with threshold stimulus. Differences of 1.0 mV or less are not significant Thresold there are no changes between the axon hillock and axon as have reached the max level of action potential. 4. In Experiment 2, explain why the number of action potentials generated varied with increased stimulation frequency. With increased stimulation frequency varied as there were not any longer a refractory period available with the supra-threshold stimuli.
(10 pts) --- image501Refer to the following information for Questions 7, 8, and 9. Show all work. Just the answer,without supporting work, will receive no credit. A fair coin is tossed 4 times. 7.
During exercise: VC will increase 5. During exercise: TLC will not change MATERIALS AND METHODS 1. Dependent Variable: Respiratory volumes 2. Independent Variable: Level of physical activity (resting or exercising) 3. Controlled Variables: Height, sex, age 4.
CAPM Model is used in calculating re. Since we chose CAPM model to calculate re, then the assumptions of the CAPM Model have to be followed correspondingly. (Some important assumptions of the CAPM Model: 1) Investors are rational and risk-averse 2) Investors are price takers 3) There is no transaction or taxation costs 4) Investors may lend and borrow unlimited amounts using the risk free rate 5) Investors have the same information at the same time, etc. 2. rd and re remain constant for Midland and each of its three divisions For simplicity, I assume rd and re remain constant. 3.