BUSINESS COLLEGE

JB Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?

Answers

Answer 1
Answer:

Answer:

$984,061.12

Explanation:

The computation of sales revenue under the worst-case scenario is shown below:-

Sales revenue under the worst-case scenario = Quantity sold × Price

= (1,600 - 1,600 × 3%) × ($647 - $647 × 2%)

= (1,600 - 48) × ($647 - 12.94)

= 1,552 × 634.06

= $984,061.12

Therefore for computing the sales revenue under the worst-case scenario we simply applied the above formula.

Related Questions

Brief Exercise 3-7 Sheridan Company’s weekly payroll, paid on Fridays, totals $6,600. Employees work a 5-day week. Prepare Sheridan’s adjusting entry on Wednesday, December 31, and the journal entry to record the $6,600 cash payment on Friday, January 2. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Describe the Software Development Life Cycle. Describe for each phase of the SDLC how it can be used to create software for an Employee Payroll System that allows employees to log the number of hours completed in a work period and then generate their pay.
Sandlewood Construction Inc. recognizes revenue over time according to percentage of completion for its long-term construction contracts. In 2018, Sandlewood began work on a $10,000,000 construction contract, which was completed in 2019. The accounting records disclosed the following data at the end of 2018: Costs incurred $ 5,400,000 Estimated cost to complete 3,600,000 Progress billings 4,100,000 Cash collections 3,200,000 In addition to accounts receivable, what would appear in the 2018 balance sheet related to the construction accounts?
Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 25%. The Federal Reserve buys a government bond worth $1,800,000 from Yakov, a client of First Main Street Bank. He deposits the money into his checking account at First Main Street Bank.Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans)Assets LiabilitiesComplete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 25%.Amount Deposited (Dollars) Change in Excess Reserves (Dollars) Change in Required Reserves (Dollars)1,800,000
Horton Co. was organized on January 2, 2014, with 500,000 authorized shares of $10 par value common stock. During 2014, Horton had the following capital transactions: January 5-issued 375,000 shares at $14 per share. July 27-purchased 25,000 shares at $11 per share. November 25-sold 18,000 shares of treasury stock at $13 per share. Horton used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2014?

The Lebanese steel factory “STEEL CO” was the leader in its market for many years. Today, the management noticed that sales are decreasing since the market prices are dropping down due to unbeatable offers and discounts from other companies operating in the market for more than 20 years ago.The management decided to use “Analytical Power” (software) to analyze the market by collecting data online via Internet from many websites and saving this data on large servers. As a result, “Steel Co.” decided to change its production line to manufacture steel products only to luxurious villas and residential homes, located in high level areas of Lebanon. This strategy helped the company to sell targeted customers at higher prices making higher revenues. The new system includes a Website allowing customers to select online the designs they wish, and even to customize the products based on quality, colors, styles, etc…
Case Questions (6 points each)

1)What is the force according to Porter’s competitive forces model, faced by the company? *
Customers
Suppliers
New market entrant
Traditional competitor

2)What is the information system strategy (or strategies) used by the company to face the forces? *

Focus on market niche
Focus on market niche & Low cost leadership
Focus on market niche & Customer intimacy
Product differentiation & Customer intimacy

3)What are the main IT components mentioned in this case? *
a) Software / Telecommunications / Physical facilities
b) Hardware / Software.
C) Software / Telecommunications / Hardware
d) Telecommunications / Software

4)If the company is not sure which IS strategy to use in order to face the competitive forces, which model may best help in this case? *
Porter competitive forces
Value chain
Porter strategies
Economic impacts

5)To which type of system the “Analytical Power” software belongs? *
DSS
ESS
MIS
TPS

Answers

Answer:

1.) Traditional competitor

2.) Product differentiation & Customer intimacy

3.) C

Software / Telecommunications / Hardware

4.) Value chain

5.) ESS

Explanation:

1.) The company was aware of its competitors' marketing strategies and pricing to any changes made. Rivalry among competitors tends to be cutthroat and industry profitability low while having the potential factors.

3.) An information system is essentially made up of five components hardware, software, database, network and people. These five components integrate to perform input, process, output, feedback and control. Hardware consists of input/output device, processor, operating system and media devices.

4.) Value chain is the process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service.

5.) An Executive Support System (ESS) is software that allows users to transform enterprise data into quickly accessible and executive-level reports, An ESS enhances decision making for executives. ESS is also known asExecutive Information System (EIS).

Answer 1):

The correct option here is D) Traditional Competitors

Explanation:

The five forces of competition when analyzed they help a business understand the factors in its external environment. It is also helpful in crafting a strong business strategy that increases the chances of the company to win over its competition in the market.

If sales were declining due to very mouth-watering offers from other companies who are over 20 years in the industry, then the force Lebanese Steel Factory has to contend with is Traditional Competitors.  

Answer 2)  

The correct option here is C)  

Explanation:

The information system deployed by Lebanese Steel Factory helped them to identify a niche area in the market which is the ability to customize product requests. By doing this, the demonstrated a kind of empathy for what the customer wants.  

Their new system allowed customers to order for steel in a way no company in the market was doing it.  

Answer 3)

The correct option her is B) Hardware/Software

Explanation:

There is no mention of telecommunications which is a technology that enables one to communicate via radio frequency over a long distance.

The "Analytical Power" however is a software. Softwares require hardware (that is a computer which may or may not be remote) to run.

Answer 4)

The correct option here is C) Porters Strategies

Explanation:

There are generic strategies identified by Michael Porter that a business can adopt to beat the competition. They are:

Cost Leadership, Differentiation and Focus strategies.

Answer 5)

The correct option here is C) MIS

Explanation:

MIS stands for Management Information System.

This is often used to refer to any computerized system that enables one to acquire data, process data into usable information, store both the data and information and generate reports based on such information for use in decision making by the management.

Cheers!

In which of the following situations could a research analyst use multiple regression? A real estate development company wants to estimate the probable sales of construction services on the basis of marriage rates, population movement in the region, and interest rates on construction loans A psychologist wants to understand the underlying personality factors associated with materialism in consumers A firm wants to identify segments of the market to pursue The brand manager for Tide laundry detergent wants to understand how consumers perceive Tide relative to other laundry detergents All of the above Question 2

Answers

Answer:

A). A real estate development company wants to estimate the probable sales of construction services on the basis of marriage rates, population movement in the region, and interest rates on construction loans.

Explanation:

Multiple regression is elucidated as the statistical technique employed to determine the association between two or more dependent or response and independent/explanatory variables.

As per the question, the multiple regression can be employed in the first situation where 'a real estate company wishes to forecast the probable sales of construction on the basis of....loans.' Multiple regression analysis would help in representing the linear relationship between these two variables that helps in ensuring effective analysis and making predictions and ensuring optimum output. Thus, option A is the correct answer.

Katlin Markets is debating between a levered and an unlevered capital structure. The all-equity capital structure would consist of 75,000 shares of stock. The debt and equity option would consist of 40,000 shares of stock plus $320,000 of debt with an interest rate of 6.25 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes.a.$46,333.33b.$44,140.71c.$42,208.15d.$49,666.67e.$42,857.14

Answers

Answer:

e. $42,857.14

Explanation:

The computation of the break-even level of earnings before interest and taxes between these two options is shown below:

(EBIT) ÷ (Number of shares) = (EBIT - Interest) ÷ Number of shares  

(EBIT) ÷ (75,000 shares) = (EBIT - $20,000) ÷$40,000

40,000 × EBIT = 75,000 × EBIT - $1,500,000,000

35,000 × EBIT = $1,500,000,000

After solving this,  

The EBIT would be $42,857.14

The interest expense

= $320,000 × 6.25%

= $20,000

Al is a medical doctor who conducts his practice as a sole proprietor. During 2019, he received cash of $334,200 for medical services. Of the amount collected, $33,600 was for services provided in 2018. At the end of 2019, Al had accounts receivable of $91,400, all for services rendered in 2019. In addition, at the end of the year, Al received $11,000 as an advance payment from a health maintenance organization (HMO) for services to be rendered in 2020. Compute AI's gross income for 2019 using the cash basis of accounting.

Answers

Answer:

AI's gross income for 2019 using the cash basis of accounting is $345,200

Explanation:

The computation of the gross income using the cash basis of accounting is shown below:

= Cash received for medical services + advance payment received from a  health maintenance organization (HMO)

= $334,200 + $11,000

= $345,200

The other items values are related to the accrual basis of accounting, So we do not consider in the computation part

At the beginning of the period, the Fabricating Department budgeted direct labor of $51,000 and equipment depreciation of $59,000 for 3,400 hours of production. The department actually completed 4,100 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. $

Answers

Answer:

=  $120,500.00

Explanation:

Flexible budget is that which  is that which recognizes the cost behavior and is used for control purpose. It is prepared based on the actual level of activity achieved.

Kindly note that the $59,000 depreciation is a fixed cost which do not vary with the hours of production.

The flexible budget for the department will be

Direct Labour budget = ( 51000/3400) × 4,100

                         =  $61,500.00

Equipment depreciation= $59,000

Total flexible budget = $61,500.00 + $59,000

                                   =  $120,500.00

Which of the following management actions is permissible during a union certification election? Promising benefits to employees if they reject the union Requiring all employees to attend "captive audience" speeches in the company auditorium regarding the union organizing effort Requiring small groups of employees to meet with management in a supervisor’s conference room to discuss the organizing effort Asking employees in advance of the election how they feel about the union

Answers

Answer:

Requiring all employees to attend “captive audience” speeches in the company auditorium regarding the union organizing effort                            

Explanation:

In simple words, union certification election refers to the electoral process under which the labor force of an organisation chooses its leader for a fixed period of time as determined by the rules. This process is usually seen in large organisations where a thousands of labor workforce is included.

Just like any other process, in these elections also the candidates are supposed to present themselves against the voters and tell them their ideas and the works they are going to perform.

Other Questions
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,960 Classroom supplies $ 270 Utilities $ 1,220 $ 75 Campus rent $ 4,800 Insurance $ 2,300 Administrative expenses $ 3,900 $ 44 $ 7 For example, administrative expenses should be $3,900 per month plus $44 per course plus $7 per student. The company’s sales should average $890 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below: Actual Revenue $ 52,280 Instructor wages $ 11,120 Classroom supplies $ 16,590 Utilities $ 1,930 Campus rent $ 4,800 Insurance $ 2,440 Administrative expenses $ 3,936 Required: 1. Prepare the company’s planning budget for September. 2. Prepare the company’s flexible budget for September. 3. Calculate the revenue and spending variances for September.
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In the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union. Atlanta agreed to a type of arrangement known as a(n)
in which order would the expectancy theory place the following events? a) outcome valence, performance, effort b) performance, effort, outcome valence c) effort, outcome valence, performance d) performance, outcome valence, effort e) effort, performance, outcome valence