3.Baldwin Corp. ended the year carrying $18,475,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of
3.Baldwin Corp. ended the year carrying $18,475,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Baldwin Corp.? Select: 1 $39,003,380 $10,625,000 $29,107,000 $18,475,000
. Suppose the Chester company begins to compete through good designs, high awareness and easy accessibility for their existing products, what strategy would they be implementing? Select: 1 Broad differentiation Niche cost leader Broad cost leader Niche differentiation
| It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 50,000 shares of stock plus a new bond issue. The CFO happily notes this will raise their Leverage (=assets/equity) to a new target of 2.8. Assume the stock can be issued at yesterdays stock price ($37.80). Which of the following statements are true? Check all that apply. |
| Select: 3 |
| | Total Assets will rise to $233,984,000 | | | The Digby Working Capital will be unchanged at $13,184 | | | The Digby bond issue will be $3,402,000 | | | Long term debt will increase from $84,814,944 to $86,704,944 | | | Total investment for Digby will be $5,292,000 | | | Digby will issue stock totaling $1,890,000 | |
2017 Income Statement 2017 Common (Product Name:) Buddy Bat Beetle Na Na Na Na Tota Size $0 $0 $0 $178,299 100.0% ales Variable Costs: $14,789 $7,190 $11,541 $9,741 $0 $0 $0 $0 $43,262 24.3% Direct Labor $20,709 $12,917 $20,177 $18,867 $0 $0 $0 $0 $72,671 Direct Material 40.8% Inventory Carry $0 $691 $781 $745 $0 $0 $0 $0 $2,21 1.2% $35,498 $20,799 $32,499 $29,353 $0 $0 $0 $0 $118,149 Total Variable 66.3% Contribution $15,198 $8,017 $18,283 $18,651 $0 $0 $0 $0 $60,150 33.7% Margin Period Costs $2,104 $1,813 $2,100 $2,300 $0 $0 $0 $0 $8,317 Depreciation 4.7% SG&A: R&D $934. $9 $727 $634 $0 $0 $0 $0 $2,304 1.3% $1,300 $1,300 $1,300 $1,300 $0 $0 $0 $0 $5,200 2.9% Promotions $3,400 $900 $800 Sales $900 $800 $0 $0 $0 $0 1.9% $402 $228 $402 $380 $0 $0 $0 $0 $1,412 Admin 0.8% $4,250 $5,329 $20,633 $5,640 $5,414 $0 $0 $0 $0 Total Period 11.6% Net Margin $9,558 $3,767 $12,954 $13,237 $0 $0 $0 $0 $39,517 22.2% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other $7,299 4.1% product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. $32,218 Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D EBIT 18.1% $3,221 Short Term Interest 1.8% department expenditures for each product. Admin: Administration overhead is estimated at 1.5% $3,268 1.8% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for LongTerm Interest $9,005 5.1% Taxes each product. Other: Charges not included in other categories such as Fees, Write Offs, and $334 0.2% Profit Sharing TQM. The fees include money paid to investment bankers and brokerage firms to issue new $16,389 9.2% stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you Net Profit might experience when you sell capacity or liquidate inventory as the result of eliminating a Variable Margins production line. If the amount appears as a negative amount, then you actually made money on 2008 Baldwin the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last years current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on 30.0% outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit 20.0% sharing 10.0% 0.09% ZZ Z
