Answer:
Two organizational structures available to the company:
Functional structure: This is the most typical type of organizational structure and may already be in use by company XYY. In this model, employees are arranged into departments based on specific roles or functions.
The essential divisions may comprise a production department, a marketing department, a finance or accounting department, and a sales department.
Flatarchy: This term combines "flat" and "hierarchy" to define a structure that lacks a rigid hierarchy. Instead, it fosters collaboration among employees working together towards shared objectives for a more integrated approach.
Answer: 90 days and 4.06 times
Explanation:
The short-term operating cycle is calculated by adding Average production process time + Days goods are held + Days Accounts receivable are due]
= 40 + 15 + 35
= 90 days
With a 365-day year, the cycle will turnover;
= 365/90
= 4.0556
= 4.06 times
The activity variance totals $20 U. Given the following data: budgeted in March = 7,900 units, actual activity level = 7860 units, revenue = $297,318, direct labor = $59,962, direct materials = $135,850, manufacturing overhead = $51,370, selling and administrative expenses = $31,950. To determine the budgeted selling and administrative expense, the variable expense is calculated as 0.5 × 7900 = $3,950, while the fixed expense remains at $27,400. Hence, total budgeted selling and administrative expenses computes to $31,350. For the flexible budget, the variable expense adjusts to 0.5 × 7860 = $3,930. Therefore, the total flexible budget for selling and administrative cost becomes $31,330. Activity variance, computed as (31350 - 31330), equals $20 U, indicating that actual performance fell below budgeted expectations, with the difference rooted solely in variations between the budgeted and actual activity levels.
Answer:
- Net present value for each project:
For Project A: $37,193
For Project B: $4,629
=> Project A should be selected based on the NPV approach due to its higher NPV.
- The internal rate of return for each project:
For Project A: 20%
For Project B: 12%
=> Project A is preferable when considering the IRR approach as it boasts a higher IRR
Explanation:
- The calculations for net present value are as follows:
For Project A: NPV = -111,000 + (37,116/0.08) x [1-1.08^(-5)] = $37,193
For Project B: NPV = -43,000 + (11,929/0.08) x [1-1.08^(-5)] = $4,629.
- Regarding the internal rate of return;
IRR represents the discount rate that results in an NPV of zero for the project's cash flows. Thus:
For Project A: -111,000 + (37,116/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 20%
For Project B: -43,000 + (11,929/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 12%
