3 Purina Dog Chow is attempting to determine th objective. The brand currently holds 10 share pa points. Currently, the total marketing effort in th Based on the competitive parity budgeting appro and above a maintenance objeetive budget) must achieve its goal? a. $880,000 >b. S1,320,000 C. $3,667,000 $5,280,000 000
Q: Consider two investments A and B with the sequences of cash flows given in the table below. 12 Click…
A: Given, Two projects A and B Hi There, thanks for posting the question. But as per Q&A…
Q: A man borrows S195,500 from a bank with interest at 7% compounded annually. e agrees to pay his…
A: Loan Amount= $195500 Rate of Interest (r) = 7% Amount payable at the end of 10 years…
Q: 5. In order to purchase a 1000 par value 10 year bond, yielding an annual nominal rate of 8%…
A: A bond is a debt instrument through which a company raises capital. It pays back a fixed amount…
Q: Qantas Airways Ltd. currently has an EPS of $3.33 and an earnings growth rate of 11 per cent. If the…
A: Earnings per share in year 9 = Earnings per share in year 0 (current year) ×(1+growth rate) ^n…
Q: i. Outline any FIVE (5)Principles of Finance use in the business. ii. Enter the names of the…
A: Financial management is the corporate function that deals with profit, expenses, cash, and credit in…
Q: You borrow money on a self liquidating installment loan (equal payments at the end of each year,…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: (rounded to nearest dollar) A ten year bond issue with a face amount of $100,000 bears interest 16.…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Using the MACRS rates from the following table, what is the book value of a $3,000 computer after 4…
A: Depreciation (MACR) The modified accelerated cost recovery scheme (MACRS) allows a company to…
Q: 1.) Mr. Roanito wants to put money in an account that pays 5% interest each year, compounded…
A: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question in case…
Q: Assume the following characteristics of a bond: Selling at 96.000, 2.5% coupon, annual pay, 12 years…
A: Given, The price of bond is 96 Face value of bond 100 (assumed) Coupon rate is 2.5% Time to maturity…
Q: uppose that you purchase a bond from a company that promises to pay $52.66 in coupon payments for…
A: The total amount that a bond pays over its lifetime includes: = Maturity Amount + Coupon Payments
Q: Using the same begging portion of the above problem -- A cotton buyer will be making a purchase of…
A: The cash market and future market are interrelated to each but both moves in opposite directions so…
Q: QUESTION 3 Suppose you deposit $2,500 in a CD paying 8% interest, compounded every other month. How…
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Q: 1. List 2 types of Coalition and explain 5 possible roles of coalition partners? 2. Explain the…
A: 1. Coalitions are divided into two types: internal coalitions and external coalitions. Internal…
Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…
A: Given, information regarding Sugar Sweet (SS) Company that produces and sells 7,000 specialty…
Q: ntify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be…
A: Loans are to be paid by equal periodic payments that carry payment of principal amount and payment…
Q: A tax-advantaged pension plan, such as a 401(k), that both employer and employee may contribute that…
A: 401(k) is a defined contribution pension plan in which employee and employer can make contributions…
Q: QUESTION 5 Because the maturity risk premium is normally positive, the yield curve must have an…
A: The Above Statement is 'False'.
Q: Using the same begging portion of the above problem -- A cotton buyer will be making a purchase of…
A: The cash market and future market are related to each other and they move opposite to each other and…
Q: Fifteen $5,000 bonds redeemable at par bearing 8% coupons payable quarterly are sold nine years…
A: Generally bond trade at three different prices are par, discount and premium with face value.…
Q: Cummings Products Company is considering two mutually exclusive investments whose expected net cash…
A: Given, The net cash flows of Cummings Products Co. is as follows: Expected Net Cash Flows…
Q: Assume that Greenwich and Pizza Hut have similar P100,000 par value bond issues outstanding. The…
A: A bond is a debt instrument through which a company raises capital. Like loans, it has to be repaid…
Q: give three examples for each context. 1.Portfolio analytics
A: Standard disclaimers “Since you have asked multiple question, we will solve the first question for…
Q: Carmen Santiago decided to invest $12,000 in shares of the AT&T company that pays her 5% in…
A: Here, Investment Amount is $12,000 Dividend is 5% each ear Value after 5 years is 1% increase in the…
Q: Consider the following information: Rate of return State of Economy Probability Stock A Stock B…
A: Thanks for posting this question but as per the guidelines in the case of multiple questions we have…
Q: Stargate Corporation is considering two projects of machinery that perform the same task. The…
A: Net Present Value(NPV) is one of the modern techniques of capital budgeting which considers the time…
Q: n problem: A company is going to buy a new machine for manufacturing its product. Four different…
A: Equivalent annual cost is the annual cost which includes the all cost that are necessary and…
Q: Suppose you bought a bond with an annual coupon rate of 7.1 percent one year ago for $894. The bond…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: Find the total amount that must be repaid on the following note described.
A: Simple interest Amount = Principal Amount x Rate of Interest x Time Amount Repaid = Principal…
Q: A car costing $ 48182 is purchased with a 25% down payment and further payments of X at the…
A: Note: All the Given Options are incorrect, so we are solving the correct one for you as per the…
Q: The next dividend for the Ali Baba company will be $6 per share. Investors require a 19 per cent…
A: Next dividend (D1) = $6 Required return (r) = 19% Growth rate (g) = 9% Period from now for valuation…
Q: how did you get 70% in part b
A: Capital structure is a combination of Equity and debt used to invest on a firm's assets and…
Q: Five years ago, an industrial engineer deposited $10,000 into an account and left it undisturbed…
A: The purchasing power of a currency is it's worth stating in terms of the number of products or…
Q: Discuss Three (3) risks face by commercial bank with asymmetric information and how the above risk…
A: A commercial bank is a financial institution that takes public deposits and lends money for…
Q: ou expect that the index will experience a gnificant drop in the next 4 months. What would e the…
A: The option are used for hedging the current position in the market and used quite extensively to…
Q: 3. Mr. Francis worked on a regular holiday that falls on his rest day. He rendered 12 hours of…
A: Overtime hours = 12 Hourly rate = P 125
Q: The city council has approved the building of a new bridge over Running Water Creek. The bridge will…
A: The amount which is constantly paid without any terminating time period is called perpetuity. The…
Q: The proceeds of a $9000, 8 year promissory note earning 5% compounded semi-annually were 10,475. How…
A: The notes carry the interest rate and are paid on maturity with interest and principal amount of…
Q: Use the amortization table to determine how much of the Bth payment is interest m Click the icon to…
A: Amortization Table refers to a complete table that shows the periodic payment of a loan amount along…
Q: An analyst gathers the following data: · Expected rate of return on the market = 14% ·…
A: Stock may be underpriced or overpriced depending on the whether required rate is above or below the…
Q: a. If you make quarterly payments of $2000 how much will you have saved in 25 years? b. Instead, if…
A: Given : Rate of Interest = 3.5% p.a. compounded quarterly. In the above question it is given that…
Q: ind pays no dividends. One year from now, there is a 50% (risk-neutral) probability that the stock…
A: European call can be exercised only on expiration unlike American call that can be exercised any…
Q: 7. 2016 2015 Industry DR 29.0% 33.5% 43.3% TIE 6.6x 2.6x 4.0x What is your…
A: The ratios are used in relative valuation of entity which is done with the help of industry average…
Q: For this investment, an initial amount of $25,000 should be paid this year (t=0). As of next year…
A: The present value method is a method of finding the productivity of the project by discounting the…
Q: Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes…
A: Answer- Working Note: Particular Actual quantity x actual price/rate Actual quantity x…
Q: Anna is buying a house selling for $265,000. To obtain the mortgage, Anna is required to make a 10%…
A: Data given:: Selling price of house = $265,000 Down payment = 10% N= 30 years Interest rate =5%…
Q: eBook Problem 20-02 Fill in the table using the following information. Assets required for…
A: The problem relates to a concept of financing a project or operations thru Debt and Equity sources…
Q: QUESTION 16 The taxes most relevant for personal financial planning are O a. excise taxes. Ob.…
A: For financial planning, it is relevant for an individual to plan their taxes accordingly to ensure…
Q: Issues that can be caused by the following risks: Execution risk Strategic risk Technology risk…
A: Operational risk management (ORM) is characterized as a continuous cyclic process that comprises…
Q: What was the average real return for Treasury bills for this time period? (Do not round intermediate…
A: T-bills refers to a debt securities or government bonds issued by the central bank on behalf of the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Required: 1. What is Hammonds variable cost ratio? Its contribution margin ratio? 2. Suppose Hammonds actual revenues are 200,000 greater than budgeted. By how much will before-tax profits increase? Give the answer without preparing a new income statement. 3. How much sales revenue must Hammond earn in order to break even? What is the expected margin of safety? (Round your answers to the nearest dollar.) 4. How much sales revenue must Hammond generate to earn a before-tax profit of 130,000? An after-tax profit of 90,000? (Round your answers to the nearest dollar.) Prepare a contribution margin income statement to verify the accuracy of your last answer.Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000Marketing: GEICO, the number-two auto insurer with $16 billion in revenue last year, spent $1.3 billion on advertising that year and plans to continue spending the same percentage of sales on advertising next year. The average advertising-to-sales ratio for the insurance industry is 0.1 percent of sales. If GEICO projects $18 billion in sales next year, using the percentage-of-sales method of advertising budgeting, how much will the company budget for advertising if basing it on projected sales? The advertising-to-sales ratio for the last year is _____?(Round to four decimal places.)
- NUBD is evaluating its X Division, an investment center. The division has a P50,000 controllable margin and P300,000 of sales. How much will NUBD’s average operating assets be when its return on investment is 20%?Roland Inc. has provided the following budgeted data: Sales .................................. 20,000 units Selling price ...................... p100 per unit Variable expense ............... P70 per unit Fixed expense .................... P450,000 What is the company's margin of safety as a percentage of sales? How many units would the company have to sell in order to have a net operating income equal to 5% of total sales peso?The corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 85,000 units next year, the unit product cost of a particular product is ₱30.60. The company's selling, general, and administrative expenses for this product are budgeted to be ₱926,500 in total for the year. The company has invested ₱580,000 in this product and expects a return on investment of 11%. The markup on absorption cost for this product would be closest to: a. 12.0% b. 38.1% c. 11.0% d. 46.6%
- Lucas is the X Division manager and his performance is evaluated by executive management based on Division ROI. The current controllable margin for X Division is P46,000. Its current operating assets total P210,000. The division is considering purchasing equipment for P40,000 that will increase sales by an estimated P20,000, with annual depreciation of P10,000. If the equipment is purchased, what is the new ROI (round-off the final answer to one decimal places)?If OMS continues to sell through the independent sales agents and pays the higher commission rate (20% instead of 15%), compute the estimated sales dollars that would be required to generate the level of profit as projected in the budgeted income statement.Given the below assumptions, what is the level of sales required for a two department (food and beverage) restaurant to achieve a 12% ROI on an investment of $8,000,000? Food sales are forecasted at $1,500,000 Food costs amount to $500,000 Total sales amount to $2,000,000 Beverage generate the remainder of sales with a variable cost of 25% The restaurant's tax rate is 30% Annual fixed costs amount to $1,000,000
- Good Sheperd Pharmaceuticals is evaluating its Sheperd division, an investment center. The division has a P45,000 controllable margin and P300,000 of sales. How much will Good Sheperd’s average operating assets be when its return on investment is 10%?Carousel Co. has prepared the following budget data: Sales, 150,000 units; selling price per unit, P25.00; variable cost per unit, P15.00; fixed costs and expenses, P1,300,000. An advertising agency claims that an aggressive advertising campaign would enable the company to increase its unit sales by 20%. What is the maximum amount that the company can pay for advertising and obtain a net operating income of P300,000?Ocean Company is conducting a cost-volume-profit (CVP) analysis and has just prepared thefollowing budget information for the coming year:Product Line Alpha Beta Ceta Total$ $ $ $Sales revenues 600,000 1,200,000 200,000 2,000,000Less: variable costs 480,000 800,000 120,000 1,400,000Contribution margin 120,000 400,000 80,000 600,000Less: fixed costs 330,000Net profit 270,000The budget assumes the sale of 20,000 units of Alpha, 100,000 units of Beta, and 40,000 unitsof Ceta.Required:(a) Determine the overall contribution margin ratio the company's break-even point in totalsales dollars. (b) Determine the company's break-even point in total units and individual product units atthe budgeted sales mix. (c) If total sales volume is increased to 200,000 units with the same budgeted sales mix,calculate the total amount of contribution margin and the net profit earned.