Marketing Docs prepares marketing plans for growing businesses. For 2017, budgeted revenues are $1,500,000 based on 500 marketing plans at an average rate per plan of $3,000. The company would like to achieve a margin of safety percentage of at least 45%. The company’s current fixed costs are $400,000 and variable costs average $2,000 per marketing plan. (Consider each of the following separately.) Required Calculate Marketing Docs’ breakeven point and margin of safety in units. Which of the following changes would help Marketing Docs achieve its desired margin of safety? The average revenue per customer increases to $4,000. The planned number of marketing plans prepared increases by 5%. Marketing Docs purchases new software that results in a 5% increase to fixed costs but reduces variable costs by 10% per marketing plan.

James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 5 years. The depreciation schedule for the machine is straight-line with no salvage value. The machine costs $540,000. The sales price per pair of shoes is $77, while the variable cost is $29. Fixed costs of $245,000 per year are attributed to the machine. The corporate tax rate is 22 percent and the appropriate discount rate is 9 percent. What is the financial break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16)

Universal containers has included its orders as an external data object into Salesforce. You want to create a relationship between Accounts and the Orders object (one-to-many relationship) leveraging a key field for account which is on both external object and Account. Which relationship do you create?

Estimating Share Value Using the DCF Model Following are forecasts of Whole Foods sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of September 25, 2016.Reported Horizon Period

$ millions 2016 2017 2018 2019 2020 Terminal Period

Sales $15,724 $15,881 $16,199 $16,523 $16,853 $17,022

NOPAT 526 524 535 545 556 562

NOA 3,466 3,500 3,570 3,642 3,715 3,752

Answer the following requirements assuming a discount rate (WACC) of 6%, a terminal period growth rate of 1%, common shares outstanding of 318.3 million, and net nonoperating obligations (NNO) of $242 million.

(a) Estimate the value of a share of Whole Foods' common stock using the discounted cash flow (DCF) model as of September 25, 2016.

Rounding instructions:

Round answers to the nearest whole number unless noted otherwise. Use your rounded answers for subsequent calculations.

Do not use negative signs with any of your answers.

Reported Forecast Horizon

($ millions) 2016 2017 2018 2019 2020 Terminal Period

Increase in NOA Answer Answer Answer Answer Answer

FCFF (NOPAT - Increase in NOA) Answer Answer Answer Answer Answer

Discount factor [1 / (1 + rw)t ] (Round 5 decimal places) Answer Answer Answer Answer

Present value of horizon FCFF Answer Answer Answer Answer

CUMULATIVE present value of horizon FCFF $ Answer

Present value of terminal FCFF Answer

Total firm value Answer NNO Answer

Firm equity value $ Answer

Shares outstanding (millions) Answer (Round one decimal place)

Stock price per share $ Answer (Round two decimal places)

(b) Whole Foods stock closed at $30.96 on November 18, 2016, the date the 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference?

A. Stock prices are a function of many factors. It is impossible to speculate on the reasons for the difference.

B. Our stock price estimate is only a few cents lower than the Whole Foods market price, indicating that we believe that Whole Foods stock is accurately priced. Our stock price estimate is lower than the Whole Foods market price, indicating that we believe that Whole Foods stock is overvalued.

C. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors' and analysts' model assumptions.

D. Our stock price estimate is lower than the Whole Foods market price, indicating that we believe that Whole Foods stock is undervalued. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors' and analysts' model assumptions.

The demand for books is: The supply of books is: 9) Refer to Scenario 2.1. What is the equilibrium price of books? 9) A) 20 B) 15 C)5 D) 10 E) none of the above A-2 10) Refer to Scenario 2.1. What is the equilibrium quantity of books sold? 10) А)75 B) 100 C) 50 D) 25 E) none of the above

Karya Company produces a handcrafted musical instrument called a gamelan. The gamelans are sold for a unit price of $839 Selected data for the company's operations last year follow: Units in beginning inventory 0 Unit produced 11,000 Units sold 7,000 Variable cost per unit: Direct materials $150 Direct labor $450 Variable manufacturing overhead $47 Variable selling and administrative $19 Fixed costs: Fixed manufacutring overhead $790,000 Fixed selling and administrative $620,000 What are the unit product costs under absorption and variable costing system

Last month, Price Company purchased supplies on account, $5,000. Today, Price Company pays the amount that is owed.Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account?

Check all that apply.

An asset account increases. An asset account decreases.

A liability account increases. A liability account decreases.

Capital Stock increases. Capital Stock decreases.

Retained Earnings increase. Retained Earnings decrease.