Answer:
D. FreshDirect shares warehouse space with farmers and livestock producers
Explanation:
FreshDirect does not share its own resources with the supplier in order to get a lower rate. If it does that , he would be practicing a business model which has different entities attached to each other to work for greater goal.
Here, this is not the case. FreshDirect tends to look for out of the box ways to lower supplier cost but "FreshDirect shares warehouse space with farmers and livestock producers" is not one of those ways.
Answer:
A prospectus is not required because the initial public offering happened 5 years ago
Explanation:
A prospectus is a legal document which is to be filled by Securities and Exchange Commission (SEC) that reflects the details with respect to the investment offering to the public in terms of stocks, bond, mutual funds, etc
On the other hand the initial public offering is the offering done by the company for the first time to the public related to the investment
Since in the question it is mentioned that the customer purchased the shares of stock but its initial public offering is done 5 years ago so no prospectus is required
Answer:
An investment readily convertible to a known amount of cash
Explanation:
Cash equivalents are items usually recognized in the balance sheet along with cash (then names Cash and cash equivalent) that are readily or easily convertible to cash at an amount that is measurable.
Examples of cash equivalents include commercial papers, bank certificate of deposit, treasury bills usually with a tenor of 3 months or less etc.
Cash equivalents are assets and help improve the company's liquidity.
Answer:
C. No, it will increase cost by $100.
Explanation:
Z Corp. can make three individual deliveries to three different customers at a cost of $500 each
Given that:
Cost of shipment = $1300
Cost of each delivery = $500
Stop of charge = $100 per stop
Total cost if for individual delivery to three different customers = 3($500) = $1500
Since they are three different customers, the total stop charge = 3($100)
cost for consolidating them into one shipment= $1300 + 3($100) = $1300 + $300 = $1600
Therefore there is an increase in cost of $1600 - $1500 = $100
Answer:
a. $9,338
b. 0.363
Explanation:
a. Contribution Margin = Sales - Variable Cost
Where Sales = $25,700
Variable Cost = Food & Packaging + Payroll + 40% x General, Selling and Administrative expenses
V.C. = 8,982 + 6,500 + 40% * 3,700
V.C = 8,982 + 6,500 + 1,480
= $16,362
Therefore, Contribution Margin = Sales - Variable Cost
= $25,700 - $16,362
=$9,338
b. McDonald's contribution margin ratio = Contribution Margin / Sales
= $9,338 / $25,700
= 0.363
