The five basic components of promotion include advertising, sales promotions, social media, publicity, and personal selling. All five components of the retailer’s promotion mix need to be managed from a total systems perspective. All non-essential retail businesses are closed due to the COVID-19 lockdown. At some point (hopefully in the near future) we will return to normal and these businesses will reopen. While these businesses will be receiving financial support from the government, many are going to be in a tight situation, and fighting for every dollar when the doors finally open. So, they will need to rely on sales promotion, publicity, social media and personal selling to succeed. Those that don’t get out of the gate strong may not survive. Choose one of the following retailers: Hand and Stone Massage; Modell’s; Caesars casino; or Outback Steakhouse. Describe the best way your retailer choice can use the four promotional components (sales promotion, publicity, social media and personal selling) to be successful when the lockdown is over.

QUESTION 1

In year 2015, ABC Inc. has the following capital structure:

The corporation has decided to expand by selling more common stock. Based on the information in the table above,

1. Given the total market value of each type of financing in the table above, calculate the weight of each type of financing component. Show your calculations in the table below.

2. Calculate the cost for each capital component.

i- Cost of debt (bond). Calculate cost of debt before tax, kd and cost of debt after tax, ki

ii-Cost of preferred stock.

iii-Cost of common stock (common equity)

a-Retained earnings

b-New issue of common equity if the floatation cost is SR1.50 per share.

c- Calculate the weighted average cost of capital (WACC) for ABC Inc. if the corporation wants to finance using new common equity.  

d- If the corporation has an investment projects with a return of 10.5%, should it invest in that project or not. Explain your answer.

Cost of Production Report: Average Cost Method

Use the average cost method with the following data:

Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January. If required, round your cost per equivalent unit answer to two decimal places.

Use the average cost method with the following data:

Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January using the average cost method. If required, round your cost per equivalent unit answer to two decimal places.

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.

Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $9,000; direct labor, $3,600; and overhead, $1,512. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months.)

1&2. Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs?
3. Using the accumulated costs of the jobs, what predetermined overhead rate is used?
4. How much total cost is transferred to finished goods during J

Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs.

On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $53,600 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $26,800 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $26,800 to Green. Revis estimates an 80% chance that cost savings will reach the target and calculates the contract price based on the expected value of future payments to be received.

Required:
Prepare the following journal entries for Revis:

1. to 3. Prepare the journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue. Also record the entry on June 30 for receipt of the bonus assuming total cost savings exceed target. And record the entry on June 30 for payment of the penalty assuming total cost savings fall short of target. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the collection of cash and recognition of the first month's revenue.

• Record the receipt of the bonus assuming total cost savings exceed target.

• Record the payment of penalty assuming that total cost savings fall short of target.

Cost-Volume Analysis

Include graph interpretation below the graph. Make sure it is clear, complete, and easy to find.

A manager is trying to determine which of three production processes to implement to produce a component for a new product line. Process A would entail a variable cost of $17 per unit and an annual fixed cost of $150,000. Process B would entail a variable cost of $11 per unit and an annual fixed cost of $250,000. Process C would entail a variable cost of $20 per unit and an annual fixed cost of $180,000.

a. Develop three separate models in your spreadsheet to calculate Total cost for each process.

            The models must be flexible and able to calculate Total cost for any Quantity produced.

b. Create a Cost-Volume graph that shows total cost lines for all three options.

            (Volume should range from 0 to 30,000)

c. Write an interpretation of your graph

Please show the formula that used if possible.

1. What is an indifference curve?

   	A.	An inverse demand curve.
   	B.	An exponential supply curve.
   	C.	A curve that shows how people don’t care about certain goods.
   	D.	A curve showing different combinations of goods that represent equally satisfying levels of consumption to an individual.

QUESTION 2

1. The following are properties of an indifference curve:

   	A.	They are bowed outward.
   	B.	Indifference curves for the same individual do not cross.
   	C.	They slope upward.
   	D.	All of the above.

QUESTION 3

1. Producing 1 unit costs $2, 2 units cost $3, 3 units cost $6, and 4 units cost $11. What is the marginal cost of the 4^th unit?

   	A.	$2.75
   	B.	$5
   	C.	$11
   	D.	$22

QUESTION 4

1. How do accountants calculate profit?

   	A.	Average revenue minus variable costs
   	B.	Marginal revenue minus average cost
   	C.	Total revenue minus explicit costs
   	D.	Total revenue minus explicit and implicit costs

QUESTION 5

1. How do economists calculate profit?

   	A.	Total revenue minus total monetary costs.
   	B.	Total revenue minus total costs including opportunity costs.
   	C.	Marginal revenue minus fixed costs.
   	D.	Average revenue minus average cost.

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 14,000 hours of productive capacity in the department: Variable overhead costs: Indirect factory labor $130,200 Power and light 6,300 Indirect materials 40,600 Total variable overhead cost $177,100 Fixed overhead costs: Supervisory salaries $61,990 Depreciation of plant and equipment 38,960 Insurance and property taxes 24,790 Total fixed overhead cost 125,740 Total factory overhead cost $302,840 Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 12,000, 14,000, and 16,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers. Leno Manufacturing Company Factory Overhead Cost Budget-Press Department For the Month Ended November 30 Direct labor hours 12,000 14,000 16,000 Variable overhead costs: Indirect factory labor $ $ $ Power and light Indirect materials Total variable factory overhead $ $ $ Fixed factory overhead costs: Supervisory salaries $ $ $ Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead $ $ $ Total factory overhead $ $ $ ?

Cost Behavior

SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $584,685 + $1.42X, where X equals number of smokers. Last year, SmokeCity produced 21,300 smokers. Actual overhead costs for the year were as expected.

Required:

2. What is the total overhead cost incurred by SmokeCity last year?

$

3. What is the total fixed overhead cost incurred by SmokeCity last year?

$

4. What is the total variable overhead cost incurred by SmokeCity last year?

$

For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary.

5. What is the overhead cost per unit produced?

$ per unit

6. What is the fixed overhead cost per unit?

$ per unit

7. What is the variable overhead cost per unit?

$ per unit

8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 21,000 units and (b) 22,800 units. Round your answers to the nearest cent.