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