Answer: See explanation
Explanation:
Based on the scenario in the question, there will be a debit to interest receivable in the amount of:
= $51600 × 6%/12
= $51600 × 0.06/12
= $51600 × 0.005
= $280
Interest revenue will also be credited in the amount of $280
Debit: Interest receivable $280
Credit: Interest revenue $280
Answer:
The operating income for the year is $97,000
Explanation:
For computing the operating income, first, we have to calculate the cost of goods sold. The formula to compute the cost of good sold is shown below:
= Beginning merchandise inventory + Purchases during the year - Ending merchandise inventory
= $33,200 + $92,000 - $35,000
= $90,200
Now, the operating income would be
= Sales - the cost of good sold - selling and administrative expenses
= $262,900 - $90,200 - $75,700
= $97,000
Answer:
The correct answer is b. Take advantage of economies of scale and scope by opening a chain of lower priced economy hotels that leverage the Coastal Haven brand image.
Explanation:
The economy of scale refers to the power that a company has when it reaches an optimum level of production to produce more at a lower cost, that is, as production in a company grows, its costs per unit produced are reduced. The more it produces, the less it costs to produce each unit.
In other words, it means that if in a production function the quantity of all inputs used is increased by one percentage, the output produced can increase by that same percentage or increase by greater or lesser amount than the same percentage. If it increases by the same percentage, we would be faced with constant economies of scale, if it were in more, they would be growing economies of scale, if it were in less, in decreasing economies of scale.
In microeconomics, economy of scale is understood as the advantages in terms of costs that a company obtains thanks to the expansion and good synergies that it has applied to its competitive environment
.
The concept of "economies of scale" serves for the long term, and refers to reductions in unit cost as the size of an installation and the levels of input utilization increase. The usual sources of economies of scale are the inventory (large-scale purchase of materials through long-term contracts), management and logistics (increasing the specialization of managers), financial (obtaining lower interest costs in bank financing), marketing and technology (benefiting of the scale yields in the production function).
Answer: The answer is Yes. This is because you have a choice to accept or decline.
