Questions
A 32-year old male develops a severe full body rash after receiving penicillin. He is certain...

A 32-year old male develops a severe full body rash after receiving penicillin. He is certain that he has never received this antibiotic in the past. Summarize the immunological reaction that is occurring in this patient, and discuss one hypothesis that would explain why the symptoms occurred when he never was prescribed the drug before.

In: Biology

Consider the equation uux + uy = 0 with the initial condition u(x, 0) = h(x)...

Consider the equation uux + uy = 0 with the initial condition

u(x, 0) = h(x) = ⇢ 0 for x > 0

uo for x < 0,   with uo< 0.

Show that there is a second weak solution with a shock along the line x = uo y / 2

  

The solution in both mathematical and graphical presentation before and after the shock.

In: Advanced Math

You are a shareholder in a C corporation. The corporation earns $36 per share before taxes....

You are a shareholder in a C corporation. The corporation earns $36 per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. The corporate tax rate is 25% and the personal tax rate on dividend income is 42% . How much is left for you after all taxes are paid?

In: Finance

A company A with founding share capital = €200,000 has issued 200,000 shares. According to its balance sheet, company A has:

A company A with founding share capital = €200,000 has issued 200,000 shares. According to its balance sheet, company A has:
Equity = €400,000
Profits before Taxes = €200,000
Profits after Taxes = €120,000.
Calculate the following: Nominal Share Price, Book Share Price, Earnings per share, and the ratio P/E.

In: Finance

2. A disaster recovery plan (DRP) is a documented process or set of procedures to execute...

2. A disaster recovery plan (DRP) is a documented process or set of procedures to execute an organization's disaster recovery processes and recover and protect a business IT infrastructure in the event of a disaster. It is "a comprehensive statement of consistent actions to be taken before, during and after a disaster". Describe a Disaster Recovery Plan (DRP) for Information Technology of a Saudi Business Concern.

In: Accounting

Discuss the importance of environmental scanning and explain how the founders of Airbnb scanned the environment...

Discuss the importance of environmental scanning and explain how the founders of Airbnb scanned the environment before starting their company. NB: Your answer should be a minimum of 500 to a maximum of 650 words. Markers are to stop marking after the threshold of 600 words has been reached. Please indicate the word count at the end your answer.

In: Economics

Two identical metal spheres attract each other with a force of 7.00 × 10−6 N when...

Two identical metal spheres attract each other with a force of 7.00 × 10−6 N when they are 3.00 cm apart. The spheres are then touched together and then removed to the original separation where now a force of repulsion of 2.00 × 10−6 N is observed. What is the charge on each sphere after touching and before touching?

In: Physics

In Year 2 a new product is forecast to generate Earnings before Depreciation and Taxes of...

In Year 2 a new product is forecast to generate Earnings before Depreciation and Taxes of $30,000. Depreciation Expense associated with the product is $8,000. The company’s tax rate is 30%. Compute the after-tax cash flow for Year 2 using both the Income Statement and Tax Shield methods and show you arrive at the same result.

In: Finance

Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income...

Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below:

Superior Markets, Inc.
Income Statement
For the Quarter Ended September 30
Total North
Store
South
Store
East
Store
Sales $ 3,700,000 $ 800,000 $ 1,480,000 $ 1,420,000
Cost of goods sold 2,035,000 460,000 794,000 781,000
Gross margin 1,665,000 340,000 686,000 639,000
Selling and administrative expenses:
Selling expenses: 831,000 238,400 318,500 274,100
Administrative expenses 418,000 113,000 161,400 143,600
Total expenses 1,249,000 351,400 479,900 417,700
Net operating income (loss) $ 416,000 $ (11,400 ) $ 206,100 $ 221,300

The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to closing the store. The company has asked you to make a recommendation as to whether the store should be closed or kept open. The following additional
information is available for your use:

a. The breakdown of the selling and administrative expenses is as follows:

Total North
Store
South
Store
East
Store
Selling expenses:
Sales salaries $ 214,800 $ 59,700 $ 72,200 $ 82,900
Direct advertising 172,000 58,000 79,000 35,000
General advertising* 55,500 12,000 22,200 21,300
Store rent 335,000 92,000 127,000 116,000
Depreciation of store fixtures 19,500 5,300 6,700 7,500
Delivery salaries 23,100 7,700 7,700 7,700
Depreciation of delivery equipment 11,100 3,700 3,700 3,700
Total selling expenses $ 831,000 $ 238,400 $ 318,500 $ 274,100

*Allocated on the basis of sales dollars.

Total North
Store
South
Store
East
Store
Administrative expenses:
Store management salaries $ 80,500 $ 24,500 $ 33,500 $ 22,500
General office salaries* 55,500 12,000 22,200 21,300
Insurance on fixtures and inventory 32,000 9,600 12,500 9,900
Utilities 101,415 31,315 35,860 34,240
Employment taxes 56,085 15,585 20,340 20,160
General office —other* 92,500 20,000 37,000 35,500
Total administrative expenses $ 418,000 $ 113,000 $ 161,400 $ 143,600

*Allocated on the basis of sales dollars.

b. The lease on the building housing the North Store can be broken with no penalty.

c. The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed.

d. The general manager of the North Store would be retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $11,000 per quarter. The general manager of the North Store would be retained at her normal salary of $12,000 per quarter. All other employees in the store would be discharged.

e. The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person’s salary is $4,700 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete.

f. The company’s employment taxes are 15% of salaries.

g. One-third of the insurance in the North Store is on the store’s fixtures.

h. The “General office salaries” and “General office—other” relate to the overall management of Superior Markets, Inc. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This person’s compensation is $6,000 per quarter.


Required:

1. Prepare a schedule showing the change in revenues and expenses and the impact on the company’s overall net operating income that would result if the North Store were closed. (Any losses/ reductions should be indicated by a minus sign.)

2. Based on your computations in (1) above, what recommendation would you make to the management of Superior Markets, Inc.?

The North Store should be closed.
The North Store should not be closed.


3. Assume that if the North Store were closed, at least one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. The East Store has enough capacity to handle the increased sales. You may assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in that store.


a. Calculate the net advantage of closing the North Store. (Any losses should be indicated by a minus sign.)

b. What recommendation would you make to the management of Superior Markets, Inc.?

In: Accounting

Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income...

Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below:

Superior Markets, Inc.
Income Statement
For the Quarter Ended September 30

Total North
Store
South
Store
East
Store
Sales $ 4,200,000 $ 840,000 $ 1,680,000 $ 1,680,000
Cost of goods sold 2,310,000 500,000 886,000 924,000
Gross margin 1,890,000 340,000 794,000 756,000
Selling and administrative expenses:
Selling expenses: 841,000 243,400 321,000 276,600
Administrative expenses 443,000 118,000 168,900 156,100
Total expenses 1,284,000 361,400 489,900 432,700
Net operating income (loss) $ 606,000 $ (21,400 ) $ 304,100 $ 323,300

The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to closing the store. The company has asked you to make a recommendation as to whether the store should be closed or kept open. The following additional
information is available for your use:

a. The breakdown of the selling and administrative expenses is as follows:

Total North
Store
South
Store
East
Store
Selling expenses:
Sales salaries $ 256,800 $ 68,600 $ 78,200 $ 110,000
Direct advertising 177,000 63,000 84,000 30,000
General advertising* 63,000 12,600 25,200 25,200
Store rent 285,000 81,000 114,000 90,000
Depreciation of store fixtures 22,000 5,800 7,200 9,000
Delivery salaries 24,600 8,200 8,200 8,200
Depreciation of delivery equipment 12,600 4,200 4,200 4,200
Total selling expenses $ 841,000 $ 243,400 $ 321,000 $ 276,600

*Allocated on the basis of sales dollars.

Total North
Store
South
Store
East
Store
Administrative expenses:
Store management salaries $ 88,000 $ 27,000 $ 36,000 $ 25,000
General office salaries* 63,000 12,600 25,200 25,200
Insurance on fixtures and inventory 37,000 11,100 15,000 10,900
Utilities 85,140 28,840 28,560 27,740
Employment taxes 64,860 17,460 22,140 25,260
General office —other* 105,000 21,000 42,000 42,000
Total administrative expenses $ 443,000 $ 118,000 $ 168,900 $ 156,100

*Allocated on the basis of sales dollars.

b. The lease on the building housing the North Store can be broken with no penalty.

c. The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed.

d. The general manager of the North Store would be retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $11,600 per quarter. The general manager of the North Store would be retained at her normal salary of $12,600 per quarter. All other employees in the store would be discharged.

e. The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person’s salary is $5,200 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete.

f. The company’s employment taxes are 15% of salaries.

g. One-third of the insurance in the North Store is on the store’s fixtures.

h. The “General office salaries” and “General office—other” relate to the overall management of Superior Markets, Inc. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This person’s compensation is $6,300 per quarter.


Required:

1. Prepare a schedule showing the change in revenues and expenses and the impact on the company’s overall net operating income that would result if the North Store were closed. (Any losses/ reductions should be indicated by a minus sign.)


2. Based on your computations in (1) above, what recommendation would you make to the management of Superior Markets, Inc.?

The North Store should be closed.
The North Store should not be closed.


3. Assume that if the North Store were closed, at least one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. The East Store has enough capacity to handle the increased sales. You may assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in that store.


a. Calculate the net advantage of closing the North Store. (Any losses should be indicated by a minus sign.)

In: Accounting