Which of the following statements about franchising is not true?

Impala is currently producing 100 units of a necessary component part by incurring $42,000 in direct materials, $8,750 in direct

photoshop1234 [79]

Answer:

If Impala decides to buy from the external source , it would then save the fixed of $1,750

Decision: Impala should be buy from the external source

Explanation:

To determine the appropriate course of action, we shall determine whether there would be a net savings in cash flow as a result of purchasing externally or not.

The relevant cash flows figures include:

Internal variable cost of production
External purchase price
Savings in internal; fixed cost as result of buying outside

Variable cost of internal production = 42,000 + 8,750 + 15,750 = 66,500

Increase in variable cost if purchased externally = 66500 - 66500 = 0

If Impala decides to buy from the external source , it would then save the fixed of $1,750

Decision: Impala should be buy from the external source

6 0

2 years ago

A group that sponsors bike helmet poster contests for children to promote bicycle safety is providing which marketing offering

KengaRu [80]

Ideas is your answer

4 0

1 year ago

The market value of Fords' equity, preferred stock and debt are $ 6 billion, $ 2 billion, and $ 12 billion, respectively. Fo

aniked [119]

Answer:

10.12 %

Explanation:

Weighted Average Cost of Capital (WACC) is the cost of permanent sources of capital pooled together. It shows the risk of the business and is used to evaluate projects.

WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock

Remember to use the After tax cost of debt :

After tax cost of debt = Interest x (1 - tax rate)

= 10% x ( 1 - 0.40)

= 6.00 %

Cost of equity :

Cost of equity = Return from Risk free security + Beta x Risk Premium

= 4.00 % + 1.8 x 8.00%

= 18.40 %

Cost of Preference Stock :

Cost of Preference Stock = Dividend / Market return x 100

= $2.50 / $ 25 x 100

= 10%

therefore,

WACC = 18.40 % x 30 % + 6.00 % x 60 % + 10.00% x 10%

= 10.12 %

thus,

Ford's weighted average cost of capital is 10.12 %

6 0

2 years ago

A process of determining just how much value an organization's marketing activities create and their impact on the bottom line

3241004551 [841]

Answer:

B, corporate citizenship

Explanation:

Corporate citizenship also know as corporate social responsibility is defined as the contribution or impact or effect of a company's/organization's/firm's business has on its local community or the society as whole. This involves the company/firm investing in its community as a form of giving back to the community asides from the company's business interests.

Cheers.

6 0

2 years ago

An overly optimistic sales budget may result in Group of answer choices increases in selling prices late in the year. insufficie

N76 [4]

Answer:

excessive inventories.

Explanation:

If there is an overall optimistic sales budget so there would be the excessive inventories as the sales budget predicts that in the future the number of units is to be sold for the given period of time. And, when this budget would be optimistic so it over predicted the sales due to this there would be the chances of the excessive inventories

hence, the last option is correct

8 0

2 years ago