Fin 320 Milestone 1
.docx
keyboard_arrow_up
School
Southern New Hampshire University *
*We aren’t endorsed by this school
Course
320
Subject
Finance
Date
Apr 3, 2024
Type
docx
Pages
4
Uploaded by BailiffIceGoldfinch21 on coursehero.com
Ryan Kut Professor Spicer
Principles of Finance
13 March 2024
The business I chose for my final project is Chipotle Mexican Grill. Chipotle is a restaurant chain that serves its customers burritos, burrito bowls, quesadillas, tacos, salads, and drinks. They were founded on July 13, 1993. They are originally an American based company that has since grown to having over 3,400 locations between the U.S, U.K, Canada, Germany, and France. Using Mergent Online
, I was able to discover Chipotles financial statements.
As of 12/31/2023
USD
Total Assets
8,044,362,000
Total Liabilities
4,982,155,000
Current Assets
1,620,713,000
Current Liabilities
1,030,625,000
Net Income
1,228,737,000
Shares Outstanding
27,426,000
Earnings Per Share
44.34
Total Revenue
9,871,649,000
Shareholder’s Equity
3,062,207,000
Financial statements are very important to a business. They help the financial manager learn the health of the business and determine how to increase the value of the firm. The income
statement will report the revenues, expenses, and profits. The balance sheet will show assets, liabilities, and stockholders’ equity. The cash flow statement will portray cash received and cash spent. The statement of shareholders’ equity shows activity in the common and preferred stock account, retained earnings, and changes to shareholders’ equity. “Analyzing a firm’s financial statements can help managers carry out three important tasks: assess current performance, monitor and control operations, and plan and forecast future performance” (Titman et al.). The objective of a financial statement analysis is to assess a firm’s financial condition. For financial control, managers utilize financial statements in order to monitor and control the operations of a firm. Financial forecasting and planning use the statements to describe the firm’s operations and create a plan. Analyzing financial statements will promote the health of the firm because managers will be able to recognize the areas that need improvement and works towards fixing them before they hurt the firm. Cash flow management is an important part of running every business. It is not important just for profitability, but long-term survival as well. Without managing cash flow properly, a company may eventually go out of business causing them to have to liquidate their inventory. Knowing how to make the correct decisions in regards to spending and generating revenue is very important. Poor cash flow management is one area many small businesses struggle with. “
The most frequent reason that small businesses fail is cash flow management issues, with 82% of failed small businesses citing cash flow problems as a primary factor” (Messenger, 2024)
. Improving cash flow management can happen by engaging in multiple different steps. These steps include sending invoices quickly and collecting outstanding debts, weekly cash forecasts, minimizing variable costs if possible, leasing expensive machinery, and developing multiple
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Blue Apron IPO Leaves a Bad Taste
Founded in 2012, Blue Apron is one of the top meal-kit delivery services doing business in the United States. Started by three co-founders—Matt Salzberg, Matt Wadiak, and Ilia Pappas—Blue Apron provides pre-portioned ingredients (and recipes) for a meal, delivered to consumers’ front doors.
According to recent research, the U.S. meal-kit delivery industry is an $800 million business with the potential to scale up quickly, as more and more consumers struggle to find time to go grocery shopping, make meals, and spend time with family and friends in their hectic daily lives.
As word spread among foodies about the quality and innovative meals put together by Blue Apron, the company’s popularity took off, supported by millions in start-up funding. Costs to scale the business have not been cheap—estimates suggest that Blue Apron’s marketing costs have been high.
Despite the challenges, by early 2017 the company was selling more than 8 million meal kits a…
arrow_forward
Blue Apron IPO Leaves a Bad Taste
Founded in 2012, Blue Apron is one of the top meal-kit delivery services doing business in the United States. Started by three cofounders—Matt Salzberg, Matt Wadiak, and Ilia Pappas—Blue Apron provides preportioned ingredients (and recipes) for a meal, delivered to consumers’ front doors.
According to recent research, the U.S. meal-kit delivery industry is an $800 million business with the potential to scale up quickly, as more and more consumers struggle to find time to go grocery shopping, make meals, and spend time with family and friends in their hectic daily lives.
As word spread among foodies about the quality and innovative meals put together by Blue Apron, the company’s popularity took off, supported by millions in start-up funding. Costs to scale the business have not been cheap—estimates suggest that Blue Apron’s marketing costs have been high.
Despite the challenges, by early 2017 the company was selling more than 8 million meal kits a month…
arrow_forward
Read the Chapter 15 Mini Case in Financial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions A and B.
Using the mini case information, write a 250-500 word recommendation of the financial decisions you propose for this company based on an analysis of its capital structure and capital budgeting techniques. Explain why you chose this recommendation.
Mini Case
Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant chain. The company’s EBIT was $120 million last year and is not expected to grow. PizzaPalace is in the 25% state-plus-federal tax bracket, the risk-free rate is 6 percent, and the market risk premium is 6 percent. The firm is currently financed with all equity, and it has 10 million shares outstanding.
When you took your corporate finance course, your instructor stated that most firms’ owners would be financially better off if the firms used some debt. When you suggested this to…
arrow_forward
Discussion Prompt
Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, they visited Thailand. Linda, a professional chef, was impressed with the cooking methods and
the spices used in Thai food. Bartlesville does not have a Thai restaurant, and the Homs are contemplating opening one. Linda would supervise the cooking, and
Steve would leave his current job to be the maître d'. The restaurant would serve dinner Tuesday through Saturday.
Steve has noticed a restaurant for lease. The restaurant has seven tables, each of which can seat four. Tables can be moved together for a large party. Linda is
planning on using each table twice each evening, and the restaurant will be open 50 weeks per year.
The Homs have drawn up the following estimates:
Average revenue, including beverages and
$45 per meal
desserts
Average cost of food
15 per meal
Chef's and dishwasker's salaries
5,100 per month
Rent (premises, equipment)
4,000 per month
Cleaning (linen, premises)
Replacement of dishes,…
arrow_forward
CESIM Simulation: Jameel’s food restaurant
Jameel owns a popular burger sandwich restaurant in Ramallah, since five years following the success of his first restaurant, Jameel is now considering opening a second one in Nablus, by which he expects to succeed as he is manufacturing low fat meet with healthy side products.
Jameel overall plan is to begin and run his new restaurant for five years, and sell both new restaurants off to a new owner and retire from the restaurant work.
The cost of starting up as second restaurant will be as follows:
Purchase of real estate (retail food outlet): $400,00 (which will be sold for the same price at the end of the project).
Installation of specialized kitchen equipment: $40,000
Furniture and fittings: $25,000
Jameel estimates that the net working capital will increase by $20,000 for the first year for the new restaurant, which will be returned back at the end of year 5 (The end of the project), he also estimates the yearly operating cost for the…
arrow_forward
Current Attempt in Progress
Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her
goals for the next 11 months are to sell one mixer per month and to give two to three classes per week.
The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping
costs in the negotiated purchase price (mixers will be shipped FOB destination). Assume that Natalie has decided to use a periodic
inventory system and now must choose a cost flow assumption for her mixer inventory.
The following transactions occur in February to May 2022.
Feb. 2
16
25
Mar. 2
30
31
Apr. 1
13.
30
May 4
27
Natalie buys two deluxe mixers on account from Kzinski Supply Co. for $1,170 ($585 each), FOB destination, terms n/30.
She sells one deluxe mixer for $1.100 cash.
She pays the amount owed to Kzinski.
She buys one deluxe mixer on account from Kzinski Supply Co. for $603, FOB…
arrow_forward
不
Subway, with more than 27.000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The
following table gives the factors for each site.
Factor
Space
Costs
Traffic density
Neighborhood income
Zoning laws
Weight Maitland
0.35
0.25
0.20
0.15
0.05
89981
60
35
45
50
80
Baptist Church
75
80
80
70
15
Northside Mall
85
88888
35
60
40
a) Based on the given information, the best location in Buffalo for Subway to open the new restaurant is Baptist Church, with a total weighted score
of 73.5 (Enter your response rounded to two decimal places)
90
Save
b) If the weights for Space and Traffic density are reversed, the best location in Buffalo for Subway to open the new restaurant will be
(Enter your response rounded to two decimal places)
with a total weighted score of
arrow_forward
QUESTION 1
Khaled has developed a new technology device that is so exciting he is considering quitting his job in order to produce and market it on a large-scale basis. Khaled will
rent a small factory for 2,000dhs per month for production purposes. Utilities will cost 500dhs per month, Khaled has already taken an industrial design course at Dubai
Men's College to help prepare for this venture. The course cost 800dhs. Khaled will rent production equipment at a monthly cost of 3,000dhs. He estimates the material
cost per unit will be 20dhs, and the labor cost will be 12dhs per unit. He will hire workers and spend his time promoting the product. To do this he will quit his job which
pays 25,000dhs per month. Advertising and promotion will cost 3,500dhs per month
Required:
1-
2- Calculate the total Fixed cost-
3- Calculate the total variable cost per unit
4- If the machine max production capacity is 1000 units per month, what is the selling price he should set to break even monthly?=
5-…
arrow_forward
Integrative Problem Samantha Sampson retired a few years ago at the age of 55. Because she is bored with retirement and still relatively young, Samantha has considered starting a business of her own. However, she doesn’t know anything about business. As a result, Sam has hired the consulting firm for which you work to give her a brief tutorial on business and finance. To begin her lesson, Ms. Sampson has asked you to answer the following questions:
What is lean manufacturing? How is the goal of value maximization related to lean manufacturing?
arrow_forward
Im looking for assistance with question 4 (bold below), including parts a and b
Practice 1:
& F., Inc. has developed a new product, the Number Cruncher 2000 to add to its ever-expanding offerings. After doing market research, it has determined that customers would be willing to pay $140 for the NC2000. D&F seeks to earn 25% profit on the product. At present, D&F makes a similar, old style model (The NC1000) for $101.25, which sells for $130.
What must the target cost be in order to earn the 25% profit that the company demands?
If D&F can adjust its costs to the target cost, the company estimates that it can sell 50,000 NC2000s. What would D&F’s profit be at this point?
How many of the old style NC1000s would have to be sold to reach the same profit?
D&F’s head of manufacturing operations is sensitive to the attainability of the cost projections in number 1 above. He has been analyzing the production process to determine how long it takes for…
arrow_forward
Question 17
Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned warehouse located on it. Last month, the marketing department spent
$15,000
on market research to determine the extent of customer demand for the new store. Now Home Builder Supply must decide whether to build and open the new store.
Which of the following should be included as part of the incremental earnings for the proposed new retail store?
a. The original purchase price of the land where the store will be located.
b. The cost of demolishing the abandoned warehouse and clearing the lot.
c. The loss of sales in the existing retail outlet, if customers who previously drove across town to shop at the existing outlet become customers of…
arrow_forward
Question 4.4
Celebration Greeting Cards Incorporated is starting a new business venture and are in the process of evaluating its product lines. Information for one new product, traditional parchment grade cards, is as follows:
Sixteen times each year, a new card design will be put into production. Each new design will require $600 in setup costs.
The parchment grade card product line incurred $75,000 in development costs and is expected to be produced over the next four years.
Direct costs of producing the designs average $0.50 each.
Indirect manufacturing costs are estimated at $50,000 per year.
Customer service expenses average $0.10 per card.
Current sales are expected to be 2,500 units of each card design. Each card sells for $3.50.
Sales units equal production units each year.
Required
What are the estimated life-cycle revenues?
What is the estimated life-cycle operating…
arrow_forward
K
Subway, with more than 27,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The
following table gives the factors for each site.
Factor
Space
Costs
Traffic density
Neighborhood income
Zoning laws
Weight
0.35
0.25
0.20
0.15
0.05
Maitland
60
35
45
50
80
Baptist Church
75
80
80
70
15
Northside Mall
85
35
60
40
90
Save
a) Based on the given information, the best location in Buffalo for Subway to open the new restaurant is Baptist Church, with a total weighted score
of 73.5 (Enter your response rounded to two decimal places)
b) If the weights for Space and Traffic density are reversed, the best location in Buffalo for Subway to open the new restaurant will be
with a total weighted score of (Enter your response rounded to two decimal places)
arrow_forward
Exercise Analytic Hierarchy process
You have been presented with 4 projects to increse profit in 100 fast food restaurants. Please use the AHP process to choose the best option.
Projects
1. Adapt self served cashiers
2. Develop an online sales department
3.increse size of kitchen in all restaurant
4. Hire 50% more associates?
arrow_forward
Question list
Question 1
Question 2
Question 3
Question 4
O Question 5
O Question 6
Question 7
Question 8
Help me solve this
(Identifying incremental revenues from new product innovations) Morten Food Products, Inc. is a regional manufacturer of salty food snacks. The firm competes directly with the
national brands including Frito-Lay, but only in the U.S. Southeast Last year Morten sold $300 million of its various chip products and hopes to increase its sales in the coming year by
offering a new line of baked chips. The new product line is expected to generate $39 million in sales next year. However, the firm's analysts estimate that about 60 percent of these
revenues will come from existing customers who switch their purchases from one of the firm's existing products to the new healthier baked chips.
a. What level of incremental sales should the company analyst attribute to the new line of baked chips?
b. Assume that 30 percent of Morten's existing customers are actively looking for…
arrow_forward
Question 42:
Suppose that JVC is trying to decide how to price a new stereo system composed of a receive
CD player, and speakers. The company's economists have estimated that three different groups
will purchase these products: students, restaurant owners and club owners. The cconomists
analysis suggests that the total market for its brand of stereos consists of 100 students, 150
restaurant owners, and 25 club owners. In addition, it is estimated that the maximum amount
each group will pay for each stereo component is as follows:
Group
CD Player Speakers
Receiver
Students
$100
$200
$125
Restaurant
$200
$100
$250
owners
Club owners
$250
$75
$300
What is JVC's maximum revenue if it uses a commodity-bundle strategy such that the receiver,
CD player, and speakers are sold as one item?
Answer: Maximum revenue =
Instructions: Enter your response rounded to the nearest whole number. Write down the
intermediate steps on the exam sheet for partial credit.
arrow_forward
Retailer Checkers has launched a new state-of-the-art supermarket at Chartwell Corner in Dainfern,Gauteng, further growing its share of the premium grocery sector in South Africa.More than 40 new jobs were created with this store opening, and Checkers FX Chartwell Corner has103 employees, the group noted.
In November Checkers announced a partnership with US coffee chain Starbucks which would seethe coffee house and roastery chain launch outlets in select supermarkets.
The retailer said that the new store in North Joburg will offer several unique speciality services,including:
• Fresh Krispy Kreme doughnuts, delivered daily;• An in-store Starbucks;• An in-store Kauai serving salads, wraps and smoothies;• A sit-down sushi bar;• Freshly-made artisanal bread, pastries and cakes;• More than 400 local and international cheeses;• Wines from over 100 estates and authentic French champagne.
The Dainfern store is the latest addition to the Checkers’ FreshX brand, which takes on upmarketretailers…
arrow_forward
Question 3
Your company manufactures tables, normally 500 units per month you just got an
order for 1,000 units for delivery next month, and are considering accepting it or not.
"Capacity" issues under consideration would include
do you have enough skilled employees?
do you have enough machines?
do you have enough time as a manager to oversee such a large order?
all of the listed answers are correct
True or false....... Financing through debt is more "risky" to a organization versus
selling common shares
True
False
arrow_forward
Need help ASAP!
This time, imagine you are a recent BCom graduate and have started working for PureMeat Company, a small but successful meat processing business that delivers premium cuts fresh, packaged and frozen to all supermarket chains across both the South and North Islands of New Zealand. PureMeat is currently in the process of evaluating whether to expand its business into Asian countries. The most recent balance sheet at fiscal year end 2021 is as follows:
PureMeat Corporation
Balance Sheet
as at 30 April 2021
Assets
$000
Liabilities & Equity
$000
Cash
75
Accounts Payable
672
Accounts Receivable
855
Accrued Marketing Expense
9
Inventory
650
Accrued G&A Expense
18
Total Current Assets
1,580
Total Current Debt
699
Fixed Assets
1,957
Long Term Debt
700
Accumulated Depreciation
(795)
Share capital
950
Net Fixed Assets
1,162
Retained Earnings
393
Total Assets…
arrow_forward
Mini Case Study
Five years ago, Phil Davis left his position at a large company to start Integrated Solutions Co. (ISC), a software design company. ISC’s first product was a unique software package that seamlessly integrated networked PCs. Robust sales of this initial product permitted the company to begin development of other software products and to hire additional personnel. The staff at ISC quickly grew from three people working out of Davis’s basement to over 70 individuals working in leased spaces at an industrial park. Continued growth led Davis to hire seasoned marketing, distribution, and production managers and an experienced accountant, Jan Smith.
Recently, Davis decided that the company had become too large to run on an informal basis and that a formalized planning and control program centered on a budget was necessary. Davis asked the accountant, Jan Smith, to work with him in developing the initial budget for ISC.
Davis forecasted sales revenues based on his projections…
arrow_forward
ACCT440 Spring 2024
Individual assignments
Management Control Case
Ivy Company ("Ivy") has been established in Hong Kong for thirty years. It is engaged in
manufacturing and retailing of naturally based herbal cosmetic products. Its retail outlets sell
both self-made and imported cosmetic products. Recently, many tourists visited HK and are
interested in shopping including cosmetic products. Ivy's directors are thinking about
extending to online business and offering more choice to retail consumers and overseas
wholesalers.
As to the self-manufactured products, Ivy conducts extensive research to develop high-quality
cosmetic products. Recently, the gross margin has fallen because of increasing competition.
Ivy must reduce the price to boost sales volume. Ivy's directors have identified two strategic
directions for the coming five-year plan. The first strategy is investing a large amount in R&D
to develop differentiated products. The second strategy is investing an affordable amount to…
arrow_forward
Please do not give solution in image formate thanku
With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden this casual surf concept to encompass a “surf lifestyle for the home.” With limited capital, they decided to focus on surf print table and floor lamps to accent people’s homes. They projected unit sales of these lamps to be 7,300 in the first year, with growth of 5 percent each year for the next five years. Production of these lamps will require $38,000 in net working capital to start. The net working capital will be recovered at the end of the project. Total fixed costs are $98,000 per year, variable production costs are $12 per unit, and the units are priced at $40 each. The equipment needed to begin production will cost $178,000. The equipment will be depreciated using the straight-line method over a five-year life and is not expected to have a salvage value. The effective tax rate is 23 percent and the required rate of return is…
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Related Questions
- Blue Apron IPO Leaves a Bad Taste Founded in 2012, Blue Apron is one of the top meal-kit delivery services doing business in the United States. Started by three co-founders—Matt Salzberg, Matt Wadiak, and Ilia Pappas—Blue Apron provides pre-portioned ingredients (and recipes) for a meal, delivered to consumers’ front doors. According to recent research, the U.S. meal-kit delivery industry is an $800 million business with the potential to scale up quickly, as more and more consumers struggle to find time to go grocery shopping, make meals, and spend time with family and friends in their hectic daily lives. As word spread among foodies about the quality and innovative meals put together by Blue Apron, the company’s popularity took off, supported by millions in start-up funding. Costs to scale the business have not been cheap—estimates suggest that Blue Apron’s marketing costs have been high. Despite the challenges, by early 2017 the company was selling more than 8 million meal kits a…arrow_forwardBlue Apron IPO Leaves a Bad Taste Founded in 2012, Blue Apron is one of the top meal-kit delivery services doing business in the United States. Started by three cofounders—Matt Salzberg, Matt Wadiak, and Ilia Pappas—Blue Apron provides preportioned ingredients (and recipes) for a meal, delivered to consumers’ front doors. According to recent research, the U.S. meal-kit delivery industry is an $800 million business with the potential to scale up quickly, as more and more consumers struggle to find time to go grocery shopping, make meals, and spend time with family and friends in their hectic daily lives. As word spread among foodies about the quality and innovative meals put together by Blue Apron, the company’s popularity took off, supported by millions in start-up funding. Costs to scale the business have not been cheap—estimates suggest that Blue Apron’s marketing costs have been high. Despite the challenges, by early 2017 the company was selling more than 8 million meal kits a month…arrow_forwardRead the Chapter 15 Mini Case in Financial Management: Theory and Practice. Using complete sentences and academic vocabulary, please answer questions A and B. Using the mini case information, write a 250-500 word recommendation of the financial decisions you propose for this company based on an analysis of its capital structure and capital budgeting techniques. Explain why you chose this recommendation. Mini Case Assume you have just been hired as a business manager of PizzaPalace, a regional pizza restaurant chain. The company’s EBIT was $120 million last year and is not expected to grow. PizzaPalace is in the 25% state-plus-federal tax bracket, the risk-free rate is 6 percent, and the market risk premium is 6 percent. The firm is currently financed with all equity, and it has 10 million shares outstanding. When you took your corporate finance course, your instructor stated that most firms’ owners would be financially better off if the firms used some debt. When you suggested this to…arrow_forward
- Discussion Prompt Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, they visited Thailand. Linda, a professional chef, was impressed with the cooking methods and the spices used in Thai food. Bartlesville does not have a Thai restaurant, and the Homs are contemplating opening one. Linda would supervise the cooking, and Steve would leave his current job to be the maître d'. The restaurant would serve dinner Tuesday through Saturday. Steve has noticed a restaurant for lease. The restaurant has seven tables, each of which can seat four. Tables can be moved together for a large party. Linda is planning on using each table twice each evening, and the restaurant will be open 50 weeks per year. The Homs have drawn up the following estimates: Average revenue, including beverages and $45 per meal desserts Average cost of food 15 per meal Chef's and dishwasker's salaries 5,100 per month Rent (premises, equipment) 4,000 per month Cleaning (linen, premises) Replacement of dishes,…arrow_forwardCESIM Simulation: Jameel’s food restaurant Jameel owns a popular burger sandwich restaurant in Ramallah, since five years following the success of his first restaurant, Jameel is now considering opening a second one in Nablus, by which he expects to succeed as he is manufacturing low fat meet with healthy side products. Jameel overall plan is to begin and run his new restaurant for five years, and sell both new restaurants off to a new owner and retire from the restaurant work. The cost of starting up as second restaurant will be as follows: Purchase of real estate (retail food outlet): $400,00 (which will be sold for the same price at the end of the project). Installation of specialized kitchen equipment: $40,000 Furniture and fittings: $25,000 Jameel estimates that the net working capital will increase by $20,000 for the first year for the new restaurant, which will be returned back at the end of year 5 (The end of the project), he also estimates the yearly operating cost for the…arrow_forwardCurrent Attempt in Progress Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week. The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping costs in the negotiated purchase price (mixers will be shipped FOB destination). Assume that Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory. The following transactions occur in February to May 2022. Feb. 2 16 25 Mar. 2 30 31 Apr. 1 13. 30 May 4 27 Natalie buys two deluxe mixers on account from Kzinski Supply Co. for $1,170 ($585 each), FOB destination, terms n/30. She sells one deluxe mixer for $1.100 cash. She pays the amount owed to Kzinski. She buys one deluxe mixer on account from Kzinski Supply Co. for $603, FOB…arrow_forward
- 不 Subway, with more than 27.000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The following table gives the factors for each site. Factor Space Costs Traffic density Neighborhood income Zoning laws Weight Maitland 0.35 0.25 0.20 0.15 0.05 89981 60 35 45 50 80 Baptist Church 75 80 80 70 15 Northside Mall 85 88888 35 60 40 a) Based on the given information, the best location in Buffalo for Subway to open the new restaurant is Baptist Church, with a total weighted score of 73.5 (Enter your response rounded to two decimal places) 90 Save b) If the weights for Space and Traffic density are reversed, the best location in Buffalo for Subway to open the new restaurant will be (Enter your response rounded to two decimal places) with a total weighted score ofarrow_forwardQUESTION 1 Khaled has developed a new technology device that is so exciting he is considering quitting his job in order to produce and market it on a large-scale basis. Khaled will rent a small factory for 2,000dhs per month for production purposes. Utilities will cost 500dhs per month, Khaled has already taken an industrial design course at Dubai Men's College to help prepare for this venture. The course cost 800dhs. Khaled will rent production equipment at a monthly cost of 3,000dhs. He estimates the material cost per unit will be 20dhs, and the labor cost will be 12dhs per unit. He will hire workers and spend his time promoting the product. To do this he will quit his job which pays 25,000dhs per month. Advertising and promotion will cost 3,500dhs per month Required: 1- 2- Calculate the total Fixed cost- 3- Calculate the total variable cost per unit 4- If the machine max production capacity is 1000 units per month, what is the selling price he should set to break even monthly?= 5-…arrow_forwardIntegrative Problem Samantha Sampson retired a few years ago at the age of 55. Because she is bored with retirement and still relatively young, Samantha has considered starting a business of her own. However, she doesn’t know anything about business. As a result, Sam has hired the consulting firm for which you work to give her a brief tutorial on business and finance. To begin her lesson, Ms. Sampson has asked you to answer the following questions: What is lean manufacturing? How is the goal of value maximization related to lean manufacturing?arrow_forward
- Im looking for assistance with question 4 (bold below), including parts a and b Practice 1: & F., Inc. has developed a new product, the Number Cruncher 2000 to add to its ever-expanding offerings. After doing market research, it has determined that customers would be willing to pay $140 for the NC2000. D&F seeks to earn 25% profit on the product. At present, D&F makes a similar, old style model (The NC1000) for $101.25, which sells for $130. What must the target cost be in order to earn the 25% profit that the company demands? If D&F can adjust its costs to the target cost, the company estimates that it can sell 50,000 NC2000s. What would D&F’s profit be at this point? How many of the old style NC1000s would have to be sold to reach the same profit? D&F’s head of manufacturing operations is sensitive to the attainability of the cost projections in number 1 above. He has been analyzing the production process to determine how long it takes for…arrow_forwardQuestion 17 Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned warehouse located on it. Last month, the marketing department spent $15,000 on market research to determine the extent of customer demand for the new store. Now Home Builder Supply must decide whether to build and open the new store. Which of the following should be included as part of the incremental earnings for the proposed new retail store? a. The original purchase price of the land where the store will be located. b. The cost of demolishing the abandoned warehouse and clearing the lot. c. The loss of sales in the existing retail outlet, if customers who previously drove across town to shop at the existing outlet become customers of…arrow_forwardQuestion 4.4 Celebration Greeting Cards Incorporated is starting a new business venture and are in the process of evaluating its product lines. Information for one new product, traditional parchment grade cards, is as follows: Sixteen times each year, a new card design will be put into production. Each new design will require $600 in setup costs. The parchment grade card product line incurred $75,000 in development costs and is expected to be produced over the next four years. Direct costs of producing the designs average $0.50 each. Indirect manufacturing costs are estimated at $50,000 per year. Customer service expenses average $0.10 per card. Current sales are expected to be 2,500 units of each card design. Each card sells for $3.50. Sales units equal production units each year. Required What are the estimated life-cycle revenues? What is the estimated life-cycle operating…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub