The following information is available in regard to revenues from Charm City Toys, a customer of the plush toy division of Carmel Manufacturing. Revenues $500,000 Cost of goods sold 400,000 Goods-handling labor 75,000 Goods-handling equipment - depreciation 87,500 Rent 12,500 Marketing support 37,500 Sales-order and delivery processing 12,500 General administration 5,500 Allocated corporate-office costs 5,000 635,500` Operating loss ($135,500) Cost of goods sold, goods-handling labor, marketing support, sales-order, and delivery-processing costs can be saved if the account is withdrawn.
There is no alternate use for warehouse space and goods-handling equipment. Should Carmel Manufacturing continue selling to Charm City Toys?

Technology corp. is considering a $238,160 investment in a new marketing campaign that it anticipates will provide annual cash flows of $52,000 for the next five years. the firm has a 6% cost of capital. what should the analysis indicate to the firm's managers?

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.