Required: 1. Compute the East Division's ROI for last year; also compute the ROI as it would appear if the new product line were added. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) ROI Present Accept Reject % New Line 2. If you were in Grenier's position, would you accept or reject the new product line? % Residual income Total 3. Why do you suppose headquarters is anxious for the East Division to add the new product line? Adding the new line would decrease the company's overall ROI. O Adding the new line would increase the company's overall ROI. Accept Reject % 4. Suppose that the company's minimum required rate of return on operating assets is 12% and that performance is evaluated using residual income. a. Compute East Division's residual income for last year; also compute the residual income as it would appear if the new product line were added. Present New Line Total b. Under these circumstances, if you were in Grenier's position, would you accept or reject the new product line?

Q1.b. In response to a request from your immediate supervisor, you have prepared a CVP graph portraying the cost and revenue characteristics of your company's product and operations. Explain how the lines on the graph and the break-even points would change if (1) the selling price per unit decrease, (2) fixed cost increased throughout the entire range of activity portrayed on the graph, and (3) variable cost per unit increased. S18000 $1.000 52000 $100.000 $15.00 $50,00 525.000 50 la T S speakers nak

A large company operated in several businesses, including computers, disk drives, financial services, and defense satellites. Each business operated as a self-contained division. However, due to an economic downturn and changing market conditions, the company sold its noncore businesses of financial services and defense satellites in order to focus only on computer-related products. However, after making these sales, its costs were still high.   a. What was the root cause of the problem? b. What structural changes needs to be made to resolve it? Justify

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(Table) According to the table, marginal revenue for the first unit is: QP 0 20 1 2 18 16 3 13 4 10 5 7 6 4 $0. $18. $20. $16. 30

a) The owners of firms in the real world would generally expect (in the long run at least) to have some positive of profits on their accounting statements. However, in economic models we usually assume that firms will be willing to operate for zero economic profits even for the long term. Explain why this is the case.

[The following information applies to the questions displayed below.]   Pete’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete’s Tennis Shop uses a periodic inventory system.   Date Transactions Units Unit Cost Total Cost August 1 Beginning inventory 8 $ 160 $ 1,280 August 4 Sale ($225 each) 5 August 11 Purchase 10 150 1,500 August 13 Sale ($240 each) 8 August 20 Purchase 10 140 1,400 August 26 Sale ($250 each) 11 August 29 Purchase 11 130 1,430 $ 5,610 For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase. 3. Using LIFO, calculate ending inventory and cost of goods sold at August 31.

4. Last year Wei Guan Inc. had $350 million of sales, and it had $270 million of fixed assets that were used at 63% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets? Please TYPE

3514e77ebfcb001ff309cb?start=true Chapter 7 - Production, Cost and Industry Structure OPEN Practice similar What is the Smith Co's Total Revenue? $ Submit answer Suppose that the firm Smith Co sells 10 gowns for $115.00 per gown. Each gown costs $74.00 to produce, and Smith Co could rent out their factory space for $330.00 per month. Answers (in progress) O E Answer hp I # $ 9 4 Score -/1 2 ☆ 68°F 6 I am finished 11:12 PM 9/28/2022 LINE 4461

Question 34 A cell phone factory has a total production cost of Cx) - 150x+10000 and a revenue function R(x) - 200x, where x represents the number of cell phones made or sold. Determine the break-even point for this factory. Break-even point: (20,220) Break-even point: (200,40000) Break-even point: (40000,200) Break-even point: (220,20)