There are a couple of concerns with Competition Bikes Inc., ProForma for year 9. The first concern is the amount of money that is allocated to research and development. For the previous three years, they have been all over the board with their budgets. The sixth year was $71,460, the seventh year was $98,280, and the eight year was $82,284. This is concerning that the budget has fluctuated so much. In the ninth year they have allocated $85,861. This budget line item should be analyzed so there is not so much variance in the budget between year to year.…
You have now been tasked with providing a recommendation for the project based on the results of a Net Present Value Analysis. Assuming that the required rate of return is 15% and the initial cost of the machine is $3,000,000.…
P0 = d0*(1+g) / (re – g) = 1.50 * (1.01) / (0.0440 – 0.01)…
Problem 1 1. Calculate the contribution per CD unit Selling price to CD distributor $9.00 Less: Variable cost CD Package and disk (direct material/labor) $1.25/unit Songwriter’s royalties $0.35/unit Recording artists’ royalties $1.00/unit Total variable cost 2.60 Contribution per CD unit $6.40 2. Calculate the break-even volume in CD units and dollars Total Fixed Cost: Advertising and promotion $275,000 Studio Recordings, Inc. overhead 250,000 Total $525,000 Contribution per CD unit (from #1 above) $6.40 Contribution margin ($9.00-$2.60)/$9.00=.711 or 71.1% $525,000 Break-even volume in units = $6.40 = 82,031.25 units $525,000 Break-even volume in dollars =…
P ROBLEM S ET 1 (D UE F EBRUARY 7, T HURSDAY IN CLASS )…
If an investor sells shares of stock through a broker, then it would be a primary market transaction.…
1. ht= -4.9t2+ 450, where t is the time elapsed in seconds and h is the height in metres.…
early distributions Instructions for Form 5329 (2012) http://www.irs.gov/pub/irs-pdf/i5329.pdf Line 2 The additional tax on early distributions does not apply to the distributions described below. Enter on line 2 the amount that can be excluded. In the space provided, enter the applicable exception number (01-12).…
E(R) = α + Rf + β (RM - Rf) + βs ∙ SMB + βh ∙ HML + βu ∙ UMD +…
Most people living in the country or small villages, People rarely strayed more then a few mile from home, Messages traveled no faster then the fastest horse or ship. In alot of ways the way people lived and worked over the last 250 years. Has changed. In the eighteenth century King James II stepped down to be replaced by William and Mary. They had agreed to accept a bill of rights that limited their power.…
Jay Gatsby is like the American government – the weak, dishonest, inefficient government we believe to be the best in the world. His individual qualities are ones that, when examined objectively, should be frowned upon. Like the government, we can hate these qualities but love the whole. From the beginning of The Great Gatsby, he is protected by the most influential character; the narrator. Because our first impression of Gatsby is provided by a biased friend of his, our view is skewed in his favor, resulting in overcompensation for his obvious flaws. Gatsby is not a good man, we just want him to be. We so strongly want to believe that he is great and pure that we are willing to look past his inherent qualities, to construct in our minds a…
The density of water is approximately one gram per cubic centimeter. It is dependent on its temperature, but the relation is not linear and is unimodal rather than monotonic (see table at left). When cooled from room temperature liquid water becomes increasingly dense, as with other substances, but at approximately 4 °C (39 °F), pure water reaches its maximum density. As it is cooled further, it expands to become less dense. This unusual negative thermal expansion is attributed to strong, orientation-dependent, intermolecular interactions and is also observed in molten silica.[22]…
I got a gift from my parents. It is $150,000. I invested all of money in stocks. I started to invest from first of March to fifteen of April. I purchased 6 companies' shares for increasing my capital. There are reasons why I chose these companies for buying and selling the firms' stocks. I got the information about the firms from companies' website, Korea newspapers and experts' reports.…
To hold the position of President of the United States of America is a highly honored task. Every four years, someone new and possibly not seen before in politics has the shot at becoming the next President. It is very important for people to understand how this process works, and be inside the thoughts and decisions that a candidate must make to reach Capitol Hill. Thanks to the people at 3M, the presidential campaign can be simulated through the complex, yet easy to understand, board game, Mr. President: The Game of Campaign Politics. Recently in class, we ran the simulation/game. One game in particular, between Nathan Allen (R) and J.C. Reese (D) involved some strategy and number crunching. Which candidate/player used the better strategy?…
In Section 2, you learned about costs and profit. Now, you'll apply what you learned.…