The Managers of Herwhno Want to Introduce a New Product

question 11

Multiple Choice

The managers of Herwhno want to introduce a new product line. The financial performance of the company for the most recent year is given below: $$\begin{array} { | l | l | } \hline \text { Sales } & £ 63,300,000 \\\hline \text { Less variable costs } & £ 36,720,000 \\\hline \text { Contribution } & £ 26,580,000 \\\hline \text { Less fued expenses } & £ 22,720,000 \\\hline \text { Net profit } & £ 3,860,000 \\\hline \text { Divisional capital employed } & \$ 23,200,000 \\\hline\end{array}$$
The company estimates that the required return on investment should be a minimum of 12%.
Details of new product line
The sales manager estimates that sales for the new product will be 420,000 units per annum if the selling price is £5.20 per unit. Variable costs are estimated to be £2.86 per unit. Fixed costs will increase by £900,000.
A budget of £2,000,000 has been agreed for investment in new machinery.
-Calculate the Residual Income after the new investment is accepted

• A)£918,800.
• B)B.-£918,000.
• C)£1,100,000.
• D)£2,140,000.

Identify practices that make products environmentally friendly or unfriendly.

Understand the ethical responsibilities of operations managers throughout the product life cycle.

Understand the functions of different parts of the brain and how they relate to behavior and cognitive functions.

Recognize the symptoms and consequences of damage to specific brain regions.

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Definitions:

Schlieffen Plan

A German military strategy developed before World War I to quickly defeat France and then turn east against Russia.

Trench Warfare

A method of combat during World War I in which opposing troops fought from systems of trenches dug into the ground.

Battle of the Marne

A significant First World War battle near the Marne River in France in 1914, which resulted in a victory for the Allies, halting the German advance towards Paris.

Triple Entente

An alliance formed in the early 20th century between France, Russia, and Great Britain, which played a significant role in the build-up to World War I.