chandler Communications'CFO has provided the following information: The company's capital budget is expected to be $5,000,000. T

Answer:

• What is the sales revenue in the worst-case scenario?

$ 125,032

Explanation:

Initial Scenario

TOTAL     Income Statement Unit   Quantity

$ 1,035,200 Total Net Sales       $ 647  1.600  

-$ 352,000 Variable Cost          $ 220  

-$ 64,000 Depreciation Expenses  

$ 619,200 Contributing Margin  

-$ 438,000 Annual Fixed Costs  

$ 181,200 Segment Margin  

Worst Case Scenario

Quantity drops by 3% from 1,600 to 1,552

Price decreases by 2% from $647 to $634

Variable Cost rises by 2% from $220 to $224

Annual Fixed Cost climbs by 2% from $438,000 to $446,760

Depreciation Expenses remain constant.

TOTAL Income Statement Unit Quantity

$ 984,061 Total Net Sales $ 634  1.552  

-$ 348,269 Variable Cost         $ 224  

-$ 64,000 Depreciation Expenses  

$ 571,792 Contributing Margin  

-$ 446,760 Annual Fixed Costs  

$ 125,032 Segment Margin  

Answer:

a. The exchange rate from Singapore dollars to Australian dollars is (SGD = 1.00 AUD) 1.0278.

b. Anne will receive 1,070.25 Australian dollars.

Explanation:

a. What is the exchange rate from Singapore dollar to Australian dollar?

Given:

Spot rate (SGD = 1.00 USD) 1.3443

Spot rate (USD = 1.00 AUD) 0.7646

This leads to:

1.3443 SGD = 1.00 USD..................... (1)

0.7646 USD = 1.00 AUD................... (2)

From equation (2), dividing by 0.7646 yields:

0.7646 / 0.7646 USD = 1.00 / 0.7646 AUD

1.00 USD = 1.3079 AUD

Inserting this back into equation (1) gives:

1.3443 SGD = 1.00 USD = 1.3079 AUD

Removing 1.00 USD results in:

1.3443 SGD = 1.3079 AUD

By dividing by 1.3079, we calculate:

1.3443 / 1.3079 SGD =  1.3079 / 1.3079 AUD

Thus, we find that 1.0278 SGD equals 1.00 AUD.

Thus, the exchange rate from Singapore dollar to Australian dollar is (SGD = 1.00 AUD) 1.0278.

b. How many Australian dollars will Anne obtain in exchange for her Singapore dollars?

This can be computed as follows:

Anne's Australian dollars = Amount in Singapore dollars / Singapore dollar to Australian dollar exchange rate = 1,100 / 1.0278 = 1,070.24712979179 Australian dollars

<p.Rounding to two decimal points, we conclude:

So, the amount Anne will obtain is 1,070.25 Australian dollars.

Response and Clarification:a. The journal entry is displayed below:-

1. Cash Dr, $32,433,150

To Premium on Bonds Payable $2,433,150

To Bonds Payable $30,000,000

(Sale of bonds is recorded)

2. Interest Expense Dr, $1,297,326

($32,433,150 × 4%)

Premium on Bonds Payable Dr, $202,674

To Cash $1,500,000

($30,000,000 × 5%)

(First semiannual interest payment, including premium amortization is recorded)

3. Interest Expense Dr, $1,289,219

($32,433,150 - $202,674) × 4%

Premium on Bonds Payable Dr, $210,781

To Cash $1,500,000

(Second semiannual interest payment, including premium amortization is recorded)

($30,000,000 × 5%)

b. Total annual interest paid = $3,000,000

Less: Premium amortized = $364,094

($202,674 + $161,420)

Interest expense for the first year = $2,635,906

The most suitable choice here is A) They distribute samples and free trials as a way to gauge public interest in their product.
I hope that helps.

Awareness is currently at 77%, or.77. Over time, awareness diminishes by 33% annually, so in the absence of extra promotional spending, next year’s awareness would be calculated as.77 *.66 (which is two-thirds of 77%). An expenditure of one million dollars would boost awareness by 26%, resulting in an awareness level of 0.77 * 1.26. To determine next year's awareness: 77% times (1.26 -.33) equals.77 * 0.93, giving us.716, or 71.6%.