Please help correctly all parts or skip Treynor Pie Company is a food company specializing in high-calorie snack foods. It is seeking to diversify its food business and lower its risks. It is examining three companies-agourmet restaurant chain, a baby food company, and a nutritional products firm. Each of these companies can be bought at the same multiple of earnings. The following representsinformation about all the companies.CompanyTreynor PieCompanyGourmet restaurantBaby food companyNutritionalproducts companyTreynor Pie CompanyGourmet restaurantBaby food companyNutritional products companyCoefficient ofVariationa-2. Which company is the least risky?Correlation withTreynor PieCompany1.0Gourmet restaurantTreynor Pie CompanyNutritional products companyBaby food companya-3, Which company is the most risky?1.8Sales(S milions)$164645177Expected Earnings(5 milions)$9a-1. Compute the coefficient of variation for each of the four companies. (Enter your answers in millions (e.g., $100,000 should be entered as ".10"). Round your answers to 3decimal places.)7Treynor Pie CompanyBaby food companyGourmet restaurantNutritional products companyb. Which of the acquisition candidates is most likely to reduce Treynor Pie Company's risk?Gourmet restaurantBaby food companyNutritional products companyStandard Deviationin Earnings($ millions)$ 3.01.41.73.1

The coefficient of variation is a tool for evaluating the relative risk of various investments or…

Answered: a-1. Compute the coefficient of…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 10E

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! Required information [The following information applies to the questions displayed below.] Sub Station and Planet Sub reported the following selected financial data ($ in thousands). Sub Station's business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub's business strategy is to sell the lowest cost sub on the planet. Net sales Net income Total assets, beginning Total assets, ending Choose Numerator 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (i.e. 123,000 should be entered as 123).) Choose Numerator Choose Numerator ÷ = 16 ÷ + .. ÷ + Sub Station $109,049 26,722 75,983 117,971 4 Planet Sub $62,871 4,292 39,999 46,133 Return on Assets Choose Denominator Profit Margin Choose Denominator Asset Turnover Choose Denominator | 11 || Return on Assets Return on assets Profit Margin Profit Margin Asset Turnover Asset Turnover 0 times e 0
The Chromosome Manufacturing Company produces two products, X and Y. The company president, Gene Mutation, is concerned about the fierce competition in the market for product X. He notes that competitors are selling X for a price well below Chromosome's price of P12.70. At the same time, he notes that competitors are pricing product Y almost twice as high as Chromosome's price of P12.50. Mr. Mutation has obtained the following data for a recent time period: PRODUCT X PRODUCT Y Number of Units 11,000 3,000 Direct Materials Cost Per Unit 3.23 3.09 Direct Labor Cost Per Unit 2.22 2.10 Direct Labor Hours 10,000 2,500 Machine Hours 2,100 2,800 Inspection Hours 80 100 Purchase Orders 10 10 Mr. Mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. The overhead costs for his time period consisted of the following items: Overhead Cost Item Amount Inspecting Costs…
The Chromosome Manufacturing Company produces two products, X and Y. The company president, Gene Mutation, is concerned about the fierce competition in the market for product X. He notes that competitors are selling X for a price well below Chromosome's price of P12.70. At the same time, he notes that competitors are pricing product Y almost twice as high as Chromosome's price of P12.50. Mr.Mutation has obtained the following data for a recent time period: Product X Product Y Number of units 11,000 3,000 Direct Materials cost per unit P3.23 P3.09 Direct Labor cost per unit P2.22 P2.10 Direct Labor hours 10,000 2,500 Machine hours 2,100 2,800 Inspection hours 80 100 Purchase orders 10 10 Mr. Mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. The overhead costs for his time period consisted of the following items: Overhead Cost item Amount Inspection Costs P16,200 Purchasing Costs 8,000 Machine Cost…
In 1994, General Mills Incorporated, a $6 billion consumer goods company, acquired Colombo Frozen Yogurt. General Mills Inc. (GMI) believed they could add Colombo frozen yogurt to their existing product lineup to increase net sales with little addition in marketing cost. Frozen yogurt is sold through two distinct segments – independent shops and impulse locations such as cafeterias, colleges, and buffets. Frozen yogurt is the main business for the shops whereas yogurt is incremental to the impulse locations’ main business. GMI’s large sales force already served the impulse market. The financial results in the first couple of years were mixed. Earnings increased slightly and then dropped each year even though sales volume was relatively flat. In total, merchandising costs dropped, while pricing promotion rates escalated. The GMI sales force focused on the impulse segments and pricing promotions were believed to be driving volume increases. However, volume in the shop segment…
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Google Inc. is a technology company specializing in Internet-related products and services, including its famous web search engine. Whirlpool Corp. manufactures home appliances including laundry appliances, refrigerators, and dishwashers. Google has a market - to - book ratio of 3.8. Based on your knowledge of the industries in which these two companies compete, and the determinants of the M/B ratio, would you estimate that Whirlpool's market-to - book ratio is O A. less than Google's M/B ratio of 3.8 O B. approximately equal to Google's M/B ratio of 3.8 O C. greater than Google's M/B ratio of 3.8
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