BUSINESS COLLEGE

Carter Industries has two divisions: the West Division and the East Division. Information relating to the divisions for the year just ended is as follows: West East Units produced and sold 31,000 41,000 Selling price per unit $ 6 $ 13 Variable costs per unit 2 3 Direct fixed cost 49,000 111,000 Common fixed cost 41,000 41,000 Common fixed expenses have been allocated equally to each of the two divisions. Carter's segment margin for the West Division is:

Answers

Answer 1
Answer:

Answer:

Total= $34,000

Explanation:

Giving the following information:

West Units produced and sold 31,000 units

Selling price per unit $ 6

Variable costs per unit 2

Direct fixed cost 49,000

Common fixed cost 41,000

Segment margin:

Sales= 186,000

Variable costs= 62,000

Direct fixed costs= 49000

Common fixed costs= 41000

Total= $34,000

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SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,487 units. Each shirt requires 0.75 pound of raw cotton that is imported from the Luft-Geshfet-Textile (LGT) Company in Brazil. The purchasing price per pound is $1.55 (paid only when the cotton arrives at SYM's facilities) and transportation cost by sea is $0.70 per pound. The traveling time from LGT’s facility in Brazil to the SYM facility in the United States is two weeks. The cost of placing a cotton order, by SYM, is $186 and the annual interest rate that SYM is facing is 32 percent of total cost per pound. a. What is the optimal order quantity of cotton? (Round your answer to the nearest whole number.)
Optimal order quantity pounds
b. How frequently should the company order cotton? (Round your answer to 2 decimal places.)
Company orders once every months
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
17-Jun
1-Jul
15-Jul
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Number of orders times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Annual holding cost $ per year
f. What is the resulting annual ordering cost?
Annual ordering cost $
g. If the annual interest cost is only 5 percent, how will it affect the annual number of orders, the optimal batch size, and the average inventory?

Answers

Answer:

Kindly check explanation

Explanation:

Given the following :

Price per pound = $1.55

Raw material required = 0.75 pound

Transport cost by sea = $0.70

Monthly demand for each of the three colors = 3487

EOQ = √2DS / H

D = 3 * 12 * 3487 * 0. 75 = 94149

Total cost of purchase = 1.55 + 0.70 = 2.25

Setup cost (S) = $186

Holding cost = 32% * 2.25 = 0.72

EOQ = √(2*94149*186) / 0.72

= 6974.50

b. How frequently should the company order cotton?

Annual demand / EOQ

94149 / 6974.50

= 13.50 ;

12 months / 13.50 = 0.89 month

c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?

Since lead time is 2 weeks, order should be made 2 weeks before : 17th June

d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)

Annual demand / EOQ

94149 / 6974.50

= 13.50 times

e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)

Holding cost * EOQ /2

0.75 * (6974.50/2) = 2615.44

f. What is the resulting annual ordering cost?

Annual ordering cost $

Ordering cost * number of orders

$186 * 13.50 = $2,511

Tresnan Brothers is expected to pay a $1.60 per share dividend at the end of the year (i.e., D1 = $1.60). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 5%. What is the stock's current value per share? Round your answer to the nearest cent.

Answers

Answer:

The price of the stock today is $80.00

Explanation:

The price of a stock whose dividends are expected to grow at a constant rate is calculated by the constant growth model of the DDM. The price of a stock under DDM is based on the present value of the expected future dividends that the stock will pay. The formula for price under this model is,

P0 = D1 / r - g

Where,

  • D1 is the dividend expected for the next period
  • r is the required rate of return
  • g is the growth rate in dividends

P0 = 1.6 / (0.05 - 0.03)

P0 = $80.00

who bears the greatest risk of loss of value if a firm should fail? group of answer choices bondholders common stockholders all of the above bear equal risk of loss. preferred stockholders

Answers

Common stockholders bear the greatest risk of loss of value if a firm should fail.

There are two sorts of shareholders in a company: common shareholders and preferred shareholders. They are the owners of common stocks, as their name implies, in a corporation. These individuals enjoy voting rights over matters concerning the company.

A person who has acquired at least one common share of a corporation is referred to as a common shareholder. Common shareholders have entitled to declared common dividends as well as a vote on corporate matters. In the event of bankruptcy, common shareholders are compensated last, following preferred shareholders and debtholders.

Learn more about common stockholders here brainly.com/question/15208096

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Which one of the following basic patterns of demand is difficult to predict because it is affected by national or international events or because of a lack of demand history reflecting the stages of demand from product development to decline? A) horizontal B) seasonal C) random D) cyclical

Answers

Answer: D) cyclical

Explanation:

Cyclical Demand is difficult to predict because it goes according to the business cycle and hence is affected on a Macro Economic scale by events at a National or International level.

This means that something could be in demand today but the demand could fall or rise sharply based on the stage of the business cycle the economy is in.

Perfect Confectionery Co. expects to earn $3.20 per share during the current year, its expected dividend payout ratio (i.e., the proportion of earnings paid out as dividend) is 60%, its expected constant dividend growth rate is 5.0%, and its common stock currently sells for $30.00 per share. New stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred. What would be the cost of equity from new common stock? 10.73% 11.29% 11.82% 12.11% 12.67%

Answers

Answer:

Correct answer is 12.11%

Explanation:

expected dividend =$3.2*60%

=$1.92

Hence cost of equity from new common stock=(D1/Current price(1-Floatation cost)+Growth rate

=1.92/(30(1-0.1))+0.05

=(1.92/27)+0.05

which is equal to

=12.11%(Approx).

Answer: 12.11%

Explanation:

GIVEN THE FOLLOWING ;

Earning per Share = $3.20

Expected dividend pay out ratio.(proportion of earning paid out as interest.)

Cost of stock per share = $30

Dividend growth rate = 5%= 0.05

Floatation cost = 10% = 0.1

Cost of equity=(dividend/(Current price(1-Floatation cost)) +Growth rate

Cost of Equity =[ (1. 92÷(30(1 - 0.1)) + 0.05

Cost of equity = [ (1.92 ÷ (30(0.9)) + 0.05

Cost of equity = (1.92 ÷ 27) + 0.05

Cost of equity = 0.07111111 + 0.05 = 0.121111

0.12111 × 100 = 12.11%

Marshall Officer is a stockholder in Endrun Investments, which is organized as a C Corporation. Endrun recently lost a major court decision and will probably be forced into bankruptcy. In fact, the damages awarded are so great that, even if all of its assets are sold and the proceeds are used to pay its debts, Endrun is likely to still owe money to its creditors. If Endrun does go bankrupt, Marshall and the other stockholders will___________

Answers

Answer:

The correct answer is letter "B": lose their investment but nothing else.

Explanation:

C Corporations are entities where the owners' assets are separate from the corporation's liabilities. This implies in front corporate of losses, the investors will not be able to recover their investment but that is the only loss they would suffer. Profits of a C Corporation must be filed at corporate and personal levels creating double taxation.
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