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2. |
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Change all of the numbers in the data area of your worksheet so that it looks like this:
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If your formulas are correct, you should get the correct answers to the following questions. |
| (a) |
What is the net operating income (loss) in Year 1 under absorption costing? |
| (b) |
What is the net operating income (loss) in Year 2 under absorption costing? |
| (c) |
What is the net operating income (loss) in Year 1 under variable costing? |
| (d) |
What is the net operating income (loss) in Year 2 under variable costing? |
| (e) |
The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because (Select all that apply.): |
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( ) units were left over from the previous year ( ) The cost of goods sold is always less under variable costing than absorbtion costing ( ) Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventories under absorption costing |
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| 3. | |
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Make a note of the absorption costing net operating income (loss) in Year 2. |
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At the end of Year 1, the company’s board of directors set a target for Year 2 of net operating income of $150,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 5,200 units. |
| (a) |
Would this change result in a bonus being paid to the CEO? |
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| (b) |
What is the net operating income (loss) in Year 2 under absorption costing? |
| (c) |
Would this doubling of production in Year 2 be in the best interests of the company if sales are expected to continue to be 2,800 units per year? |
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In: Accounting
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2. |
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Change all of the numbers in the data area of your worksheet so that it looks like this:
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If your formulas are correct, you should get the correct answers to the following questions. |
| (a) |
What is the net operating income (loss) in Year 1 under absorption costing? |
| (b) |
What is the net operating income (loss) in Year 2 under absorption costing? |
| (c) |
What is the net operating income (loss) in Year 1 under variable costing? |
| (d) |
What is the net operating income (loss) in Year 2 under variable costing? |
| (e) |
The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because (Select all that apply.): |
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( ) units were left over from the previous year ( ) The cost of goods sold is always less under variable costing than absorbtion costing ( ) Sales exceeded production so some of the fixed manufacturing overhead of the period was released from inventories under absorption costing |
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| 3. | |
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Make a note of the absorption costing net operating income (loss) in Year 2. |
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At the end of Year 1, the company’s board of directors set a target for Year 2 of net operating income of $150,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 5,200 units. |
| (a) |
Would this change result in a bonus being paid to the CEO? |
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| (b) |
What is the net operating income (loss) in Year 2 under absorption costing? |
| (c) |
Would this doubling of production in Year 2 be in the best interests of the company if sales are expected to continue to be 2,800 units per year? |
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In: Accounting
This is all one question with several parts for my accounting homework. I've tried but I keep getting the wrong answer please help.
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 if your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing?(b) What is the net operating income (loss) in Year 2 under absorption costing? (c) What is the net operating income (loss) in Year 1 under variable costing? (d) What is the net
operating income (loss) in Year 2 under variable costing? (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because:
Make a note of the absorption costing net operating income (loss) in Year 2. At the end of Year 1, the company’s board of directors set a target for Year 2 of net operating income of $40,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 3,800 units. (a) Would this change result in a bonus being paid to the CEO?
(b) What is the net operating income (loss) in Year 2 under absorption costing (c) Would this doubling of production in Year 2 be in the best interests of the company if sales are expected to continue to be 2,100 units per year?
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In: Accounting
The following regression model was estimated by an Australian-based MNC to determine its degree of economic exposure to the U.S. dollar (US$) and the South African Rand (SAR):
where the dependent variable is the percentage change in cash flows
(PCF) measured in the company's home currency over period t. The
explanatory variable (et) is the percentage change in the exchange
rate of the foreign currency (e.g., A$/SAR) over period t. The
regression was estimated over a single period for each of the two
currencies, with the following results:
| Regression Coefficient (a1) | |
| US$ | 0.10 |
| SAR | -0.76 |
Based on these results, which of the following statements is not true?
| A. |
The MNC was more sensitive to movements in the SAR than in the US$. |
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| B. |
On average, when the US$ appreciated, the MNC’s cashflows increased. |
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| C. |
The MNC likely imports more goods from South Africa than it exports. |
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| D. |
On average, when the SAR depreciated, the MNC’s cashflows decreased. |
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| E. |
All of the above are true. |
In: Accounting
1) Suppose the domestic supply (QS U.S.) and demand (QDU.S) for bicycles in the United States is represented by the following set of equations:
QS U.S. = 2P
QDU.S. = 200 – 2P.
Demand (QD) and supply (QS) in the rest of the world is represented by the equations:
QS = P
QD =160 – P. Quantities are measured in thousands and price, in U.S. dollars. After the opening of free trade with the United States, if the world price of the bicycles settles at $60, answer the following questions:
a. What are the equilibrium price and quantity for US and ROW if there is no international trade? Draw the demand and supply curves on the graph, and label these points.
b. What are the quantities of the import and export if they can trade freely with the price of $60?
c. What is the effect of the shift from no trade to free trade on US consumer surplus? On producer surplus? What is the net national gain or loss for US?
d. Calculate the net benefit for US and ROW after trade to support your answers.
In: Economics
Which of the following is a consequence of a country running fiscal deficits? Lower balance of trade Higher trade deficits Higher national debt Less innovation
| Lower balance of trade |
| Higher trade deficits |
| Higher national debt |
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Less innovation when we talk about the Rust Belt that stretches across parts of the Midwest and Northeast in the US, the description comes from the fact that cities and towns tend to have problems with:
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In: Economics
ANALYZE/INTERPRET THE STUDY AS WELL AS YOUR CONCLUSIONS FROM YOUR CALCULATIONS
DVR’s allow us to skip commercials when watching TV. Some also allow advertisers to see which ads are actually watched. Advertising research indicates that an ad has to be viewed by more than 5% of households to be cost effective (at the very least break even) in the long run. A sample of 250 homes in Cincinnati were monitored to determine viewers’ reactions to a fast food commercial that featured a well-known band. The data revealed 20 of the homes actually viewed the ad
On the basis of this study, will the ad be cost effective for the company? Use the 0.01 significance level.
In: Statistics and Probability
Strategic Management ABB, headquartered in Zurich, Switzerland, is a major competitor in the power and automation technologies industries across the major markets globally. It has 140,000 employees operating in almost 100 countries. In fact, it has five major businesses—power products, power systems, discrete automation, low voltage products, and process automation. It operates in eight major regions: (1) Northern Europe, (2) Central Europe, (3) the Mediterranean, (4) North America, (5) South America, (6) India, the Middle East, and Africa, (7) North Asia, and (8) South Asia. Over time, ABB has been a successful company using its geographic diversification across the globe to its advantage. It also exemplifies the difficulty of managing an international strategy and operations. For example, its power systems business has experienced performance problems in recent years due to poor performance in some countries due primarily to the economy downturn. Notwithstanding the difficulty of managing in emerging economies, much of its growth is focused on improving country infrastructure such as power systems and grids. In 2014, the firm announced that the Asia, Middle East, and Africa (AMEA) region currently contributes about 37 percent of ABB’s total revenue, or about $15.3 billion, and “emerging markets were planned to contribute to two-thirds of the forecast growth between 2015 and 2020.” In recent years, most of ABB’s entries to new mar- kets and expansions in existing markets have come from acquisitions of existing businesses in those mar- kets. Recently, it acquired Siemens’ solar energy busi- ness, Power-One, and U.S.-based Los Gatos Research, a manufacturer of gas analyzers used in environmental monitoring and research. The purchase of Power-One represents a major risk as the solar power industry is in a downturn. Yet some analysts predict a brighter future for the industry over the long term. ABB also uses other modes of entry and expansion, exemplified by the 2013 joint venture with China’s Jiangsu Jinke Smart Electric Company to design, manufacture, and provide follow-up service on high voltage instrument transformers. It also recently procured major contracts for business in Brazil and South Africa. Partly due to the global economic recession that began in 2008, recent weak economic performance, and some poor expansion decisions, ABB’s performance has been weaker than expected. As a result, the CEO and chief technology officer announced their resignations in 2013. Despite these changes, ABB is a highly respected global brand, and, after its recent changes (e.g., closing some country operations), its revenues and earnings have started to rise. These positive changes have been largely attributed to the success of its North American businesses. Its acquisitions of Baldor (maker of indus- trial motors) in 2010 and Thomas & Betts in 2012 greatly enhanced its North American operations and revenues. It has also had success in manufacturing equipment and robots with its robotics business headquartered in the United States. It is even moving to help small com- panies, such as ones in the beer industry, to automate their production processes. Therefore, even in turbulent times, ABB’s future looks bright. Case study: An International Strategy Powers ABB’s Future 1. What are the dominant reason’s for ABB to enter into international markets? 2. Which corporate international strategy would you classify ABB as using? Explain your answer. 3. Why has ABB used acquisitions and joint ventures as dominant entry modes in international markets? 4. What are the main political and economic risks that ABB must deal with given that it has a strong focus on entering emerging economies? 5. What are the significant organizational complexities that ABB encounters as it tries to manage its international strategy?
In: Operations Management
On January 1, 2020, Winthrop Inc. entered into a lease agreement to lease equipment:
Required:
In: Accounting
On January 1, 2020, Winthrop Inc. entered into a lease agreement to lease equipment:
Required:
In: Accounting