Answer:
Koski Inc.
Quick Ratio:
Quick Ratio = (Current Assets - Inventory) divided by Current Liabilities
Quick Ratio = $(23,595 - 12,480) / $(17,160 -5,460)
Quick Ratio = 11,115 / 11,700 = 0.95
Explanation:
The quick ratio is a financial metric that shows the short-term liquidity position of a company. It measures the company's ability to settle its short-term obligations using its most liquid current assets. The most liquid assets are cash and near cash current assets.
Inventory is always removed in calculating the most liquid current assets. Inventory will take some time before it can be converted to cash or near cash, given the cash conversion cycle.
The quick ratio is also called the acid-test ratio. It is also considered as more conservative than the current ratio which measures the coverage of current liabilities by all current assets, including inventory.
In our workings, we eliminated inventory from current assets. We also eliminated notes payable which would be rolled over the next year.
The need that the electronic pencil fill is the need to erase errors associated with what has been written down digitally.
<h3>What is the potential market for the product?</h3>
The potential market for electronic pencil is the global digital pen market and the global market as a whole.
<h3>What type of consumer good is electronic pencil product?</h3>
The type of consumer good of electronic pencil product is Specialty products.
<h3> How will you distribute the product?</h3>
One can distribute the product via online platforms such as social media, online stores and marketplace, etc.
<h3> What are the other questions that need to be answered before a decision is made?</h3>
- The lifespan of the product.
- Does it have effect to the human skin
- Is it feasible.
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Answer:
If sales fall by 20% AFC raises 38 cents per paper, i.e. a 25% increase in AFC.
Explanation:
To find the average fixed cost (AFC), we have to sum all fixed costs and divide it by the amount of units produced. Fixed costs are those that don't depend on how much is produced, in this case, rental and labor cost don't depend on output, as you can neither move to a cheaper place nor decrease labor obligations even if the factory had no output (newspapers printed).
We can see that as the output reduced, AFC rose 38 cents per paper or a 25% increase in AFC.
