Chester Corp. ended the year carrying $12,527,000 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 Chester Corp.?

Select: 1

$12,527,000

$20,037,000

$27,049,950

$7,497,000

The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwin repurchases some of its common stock:

Select: 1

It is a use of cash, and will be shown in the financing section as a subtraction.

It is a use of cash, and will be shown in the investing section as a subtraction.

It is a source of cash, and will be shown in the investing section as an addition.

It is a source of cash and will be shown in the financing section as an addition.

This year Andrews achieved an ROE of 10.0%. Suppose next year the profit margin (Net Income/Sales) increases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Andrews's ROE?

Select: 1

Andrews ROE will remain the same.

Andrews ROE will increase.

Andrews ROE will decrease.

It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true? Select all that apply.

Select: 3

The total investment for Baldwin will be $13,145,157

Baldwins long-term debt will rise by $10,000,000

Total Assets will rise to $211,755,843

Total liabilities will be $132,162,714

Working capital will remain the same at $13,337,345

Baldwin's turnover rate for this year is 6.30%. This rate is projected to remain the same next year and no further downsizing will occur from automating. What would the total recruiting cost be for Baldwin, assuming it spends the same amount extra above the $1,000 recruiting base as they did this year?

Select: 1

$2,202,927

$138,740

$315

$166,488

Next year Baldwin plans to include an additional performance bonus of 0.5% in its compensation plan. This incentive will be provided in addition to the annual raise, if productivity goals are reached. Assuming the goals are reached, how much will Baldwin pay its employees per hour?

Select: 1

$29.70

$31.04

$28.29

$28.15

Suppose the Chester company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing?

Select: 1

Niche cost leader

Niche differentiation

Broad differentiation

Broad cost leader