Hawkins Poultry Farms is considering the purchase of feeding equipment that costs $139,000 and will produce annual cash flows of

Response:

For the year 2010

Degree of combined leverage equals 3.82

For the year 2011

Degree of combined leverage equals 4.11

Clarification:

The degree of combined leverage of the company is computed using the formula provided:

Degree of combined leverage = Contribution margin / EBT

Where

Contribution margin is calculated as:

Contribution margin = Sales - Variable Costs

EBT (Earnings before tax) is calculated as:

EBT = EBIT - Interest

Now, calculate accordingly using the formula:

For 2010:

Contribution margin: $700,000 - $406,000

= $294,000

EBT = $119,000 - $42,000

= $77,000

Degree of combined leverage: $294,000 / $77,000

= 3.82

For 2011:

Contribution margin: $760,000 - $448,000

= $312,000

EBT: $122,000 - $46,000

= $76,000

Degree of combined leverage: $312,000 / $76,000

= 4.11

d. a transformational process. Explanation: A transformational process entails changes within an organization's output products, reflecting alterations in the inputs aimed at ensuring customer satisfaction. For instance, upon receiving feedback from customers about their purchasing patterns, Kaylee discovered a rising interest in gluten-free options. She adapted her bread recipe to eliminate gluten, resulting in the creation of gluten-free bread that consistently sells out, thus integrating customer feedback into her transformational process.

$8,400 The calculation for the annual financial benefit (loss) for the organization is detailed below: Particulars     Make                             Buy Direct material           $53,600 (8,000 units × $6.70) Direct labor               $64,800 (8,000 units × $8.10) Variable manufacturing overhead $8,800  (8,000 units × $1.10) Supervisor's salary $16,000  (8,000 units × $2) Fixed manufacturing overhead $2,000   Opportunity cost $16,000   Purchase cost                                                        $169,600  (8000 × $21.20) Total relevant cost       $161,200                              $169,600 Financial (loss) is = $161,200 - $169,600 = -$8,400 We simply compared the make and buy costs and found that purchasing incurs a higher cost than manufacturing, leading to an excess expense of $8,400 if the external supplier is chosen.

Answer:

d. pertains to a firm's distinctive methods for creating additional value.

Explanation:

Competitive advantage refers to the edge a company has over its rivals. This can be achieved through various means such as providing value products, optimal quality, and excellent services that may entice customers away from competitors to their advantage.

The goal is to generate added value for the company's offerings, utilizing innovative concepts to attract customers and enhance satisfaction, ultimately leading to the fulfillment of corporate objectives.

Answer:

Mary must submit official paperwork related to the merger or name change to the DSO, ensuring her records are updated.

Explanation:

Since the firm has merged and changed its name from XYZ Corporation to ABCXYZ Inc, Mary needs to draft a formal notification to her DSO regarding this change and the merger.

The DSO will then amend her records with the University of the Cumberlands.