Baker's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Baker product manager do in order to improve upon the buying criteria, and thus potentially increase demand
Answers
Question options :
Increase MTBF by 2000
Reposition Cake to make it even smaller and higher performing
Increase the promotion budget to gain greater awareness
Lower the selling price since it is the second most important buying criteria
Answer:
Increase the promotion budget to gain greater awareness
Explanation:
In this case, some managers might consider reducing price and may be affecting contribution margin in this way(because selling price/profit is reduced and price- variable cost =contribution margin). While price reduction might be a good strategy to compete in the market, it might not be the best option here. in order to increase demand in a case such as this, the manager should consider increasing product awareness so as to reach more potential buyers and increase market share compared to competitors.
Related Questions
The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $17,000 cash. Purchase prepaid insurance to protect musical equipment over the next year for $4,200 cash. Purchase musical equipment for $20,000 cash. Obtain a loan from a bank by signing a note for $30,000.Record the transactions. The company uses the following accounts: Cash, Prepaid Insurance, Equipment, Notes Payable, and Service Revenue.
In the EOQ model, the average inventory per cycle over many cycles is Q/2. A. True B. False
Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $10,000 not due for three years. The interest rate on the note is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,000 per month for the next three years and then $1,000 per month for two years after that. If the bank is charging customers 9.75 percent APR, how much would it be willing to lend the business owner
Answers
Answer:
Predetermined manufacturing overhead rate= $2 per direct labor dollar
Explanation:
Giving the following information:
Estimated overhead cost= $1,200,000
Estimated direct labor cost= $600,000.
To calculate the predetermined overhead rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,200,000 / 600,000
Predetermined manufacturing overhead rate= $2 per direct labor dollar
Final answer:
The predetermined overhead rate of Bridge Building Company is 2, which is calculated by dividing the overhead costs by the direct labor costs. This signifies that for every dollar of direct labor cost, the company allocates two dollars to overhead costs.
Explanation:
The predetermined overhead rate of the Bridge Building Company can be calculated by dividing the total estimated overhead costs by the total estimated direct labor costs as follows:
- Overhead costs = $1,200,000
- Direct labor costs = $600,000
- Predetermined overhead rate = Overhead costs / Direct labor costs
- Therefore, the predetermined overhead rate = $1,200,000 / $600,000 = 2
This means that for every dollar of direct labor cost, the Bridge Building Company allocates two dollars to overhead costs. This rate is used as the allocation base for their overhead.
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Answers
Answer:
the options are missing, but I wrote down the two possible answers
the journal entry to record the purchase assuming perpetual inventory method:
Dr Merchandise inventory 40,000
Cr Accounts payable 40,000
the journal entry to record the damaged merchandise assuming perpetual inventory method:
Dr Accounts payable 4,000
Cr Merchandise inventory 4,000
OR
the journal entry to record the purchase assuming periodic inventory method:
Dr Purchases 40,000
Cr Accounts payable 40,000
the journal entry to record the damaged merchandise assuming periodic inventory method:
Dr Accounts payable 4,000
Cr Purchases returns 4,000
Accumulated Depreciation-Equipment $ 292,000
Payroll Taxes Payable 177,591
Inventory 239,800
Bonds payable 300,000
Rent payable (short-term) 45,000
Discount on bonds payable 15,000
Income taxes payable 98,362
Cash 360,000
Rent payable (long-term) 480,000
Land 480,000
Common stock, $1 par value 200,000
Notes receivable 445,700
Preferred stock, $10 par value 150,000
Notes payable (to banks) 265,000
Prepaid expenses 87,920
Accounts payable 490,000
Equipment 1,470,000
Retained earnings ?
Retained earnings ?Debt investments (trading) 121,000Income taxes receivable 97,630Accumulated depreciation-buildings 270,200Notes payable (long-term) 1,600,000Buildings 1,640,000
Required:
Required:1. Prepare a classified balance sheet in good form.
Answers
Answer:
MONTOYA, INC.
Balance Sheet
December 31, 2017
Assets
Current assets
Cash $360,000
Equity Investments (Trading) 121,000
Notes Receivable 445,700
Income Taxes Receivable 97,630
Inventory 239,800
Prepaid Expenses 87,920
Total current assets $1,352,050
Property, plant, and equipment
Land 480,000
Buildings $1,640,000
Less: Accum Deprec - Buildings 270,200 1,369,800
Equipment 1,470,000
Less: Accum Deprec - Equipment292,000 1,178,000
3,027,800
Intangible assets
Goodwill 125,000
Total assets $4,504,850
Liabilities and Shareholders’ Equity
Current liabilities
Accounts Payable $490,000
Notes Payable to Banks 265,000
Payroll Taxes Payable 177,591
Income Tax Payable 98,362
Rent Payable - Short-term 45,000
Total current liabilities $1,075,953
Long-term liabilities
Unsecured Notes Payable (Long-term) 1,600,000
Bonds Payable $300,000
Less: Discount on Bonds Payable 15,000 285,000
Rental Payable Long-term 480,000 2,365,000
Total liabilities 3,440,953
Shareholders’ equity
Capital Stock
Preferred stock, $10 par; 20,000 shares authorized, 15,000 shares issued 150,000
Common stock, $1 par; 400,000 shares authorized, 200,000 issued 200,000 350,000
Retained Earnings ($1,063,897 - $350,000) 713,897
Total shareholders’ equity ($4,504,850 – $3,440,953) 1,063,897
Total liabilities and shareholders’ equity $4,504,850
Computation of Retained earnings:
Accounting Equation
Total assets $4,504,850
Less: Liabilities 3,440,953
Less: Contributed capital 350,000
Retained earnings $713,897
A classified balance sheet divides assets, liabilities, and equity into subcategories. Assets and liabilities are further divided into current and non-current. Retained earnings, part of equity, is calculated by adding this period's net income to last period's retained earnings and subtracting dividends paid.
A classified balance sheet categorizes assets, liabilities, and equity into subcategories to provide more meaningful information.
Assets
can be categorized as current assets (e.g. Cash, Debt investments (trading), Notes receivable, Prepaid expenses, Income taxes receivable, Inventory), long-term investments, property plant and equipment (PPE), Intangible assets such as Goodwill, and other assets.
Liabilities
can be categorized as current liabilities (e.g. Accounts payable, Notes Payable to the bank, Rent payable (short-term), Payroll Taxes Payable, Income taxes payable) and long-term liabilities (e.g. Notes payable (long-term), Rent payable (long-term), Bonds payable less discount on bonds payable).
Equity
is comprised of share capital (Common stock and Preferred stock) and Retained earnings.
To calculate Retained earnings, begin with the last period's retained earnings, add this period's net income, and subtract dividends paid. Given the provided information, we can't calculate it as not all necessary information is provided. Hence, it is mentioned as ?.
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Answers
Answer:
A. 1.111
B. The process is not capable
Explanation:
Part A
Capacity index help todetermine the performance of a process and how it could perform in the future. A capacity index of above 1.33 means that the process is capable but a capacity index below 1.33 means that the process is not capable. The capacity index can be calculated using equation 1;
From the mean which is 0.5, it can be determined that the process is a centered process.
For centered process, the mean = 0.5 x (Upper s. - Lower S.) = 0.5 x 0,02 = 0.04
so the capacity index for centered mean will be used
................................................1
Given standard deviation = 0.003
upper specification = 0.05
lower specification = 0.03
Therefore the capacity index of the process is 1.111
Part B
The capacity index of the process is 1.111 and it is less than 1.33, this means that the process is not capable.
decentralize decision making and facilitate teamwork.
detect opportunities and increase innovation.
adapt to change and uncertainty.
provide performance feedback.
Answers
Decentralize decision making and facilitate teamwork. The correct answer is option (a).
What is Decentralize decision making?
Any procedure in which decision-making power is dispersed across a broader group is considered to be decentralised decision-making. Additionally, it suggests that lower level bureaucrats, executives, and employees are given more power. This may happen in any institution, regardless of size, from a business to a political body.
On the other hand, decentralising decision-making shortens wait times, enhances the flow and throughput of product development, and makes it possible for quicker feedback and more creative solutions. Higher levels of autonomy are a further, noticeable advantage. In general, it is ideal to make decisions at a decentralised level when they are frequent and time-sensitive. A decision should be centralised if it is rare, not time-sensitive, and includes economies of scale.
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Answers
Answer:
The answer is $3,214,285.71
Explanation:
Price of each award is $45,000
And there are 5
Therefore, we have 5 x $45,000
=$225,000.
So, $225,000 is the future value.
Rate of return(r) in 7% and it is being assumed that it is forever.
So, so how much will be needed to fund his prizes(present value)?:
PV = FV/r
= $225,000/0.07
=$3,214,285.71