Answer:
The key reason a top level executive would want to open yet another location especially in a place like china where labor and materials is cheaper is <u>minimizing risk of loss.</u>
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Explanation:
Diversification strategies are used to expand firms’ operations by adding markets, products, services, or stages of production to the existing business.
In this case, the top level executive is giving emphasis to lower cost of production at the new location as a reason to expand it operations there and also diversify.
Minimizing risk of loss is his primary motivation because over time, when the already established companies currently running at a deficit which could be in line with the business model, begin to record profit, some might still lag behind but not all of them at once.
If one location performs poorly over a certain period, others may perform better over that same period, reducing the potential losses from concentrating resources capital under fewer locations.
If ABC purchased $500 of merchandise on account. ABC's journal entry to record this transaction includes a:
Debit to Inventory of $500
Credit to Accounts Payable of $500.
Based on the information given if the company purchased merchandise of the amount of $500 on account, the appropriate journal entry to record this transaction is:
ABC journal entry
Debit to Inventory of $500
Credit to Accounts Payable of $500
(To record merchandise on account)
Learn more here:<em>brainly.com/question/14919979</em>
Answer:
Carol should save $672 per month.
Explanation:
Savings is the process of setting aside some part of one's income for the sake of an emergency or for retirement purposes. The best way to budget one's income by economists is: to save at least 20 %, a maximum of 50% should be spent on necessities and the remaining 30% should go towards discretionary items. In our case Carol can budget her income as follows;
<em>Step 1: Determine annual savings</em>
S=20%×N.I
where;
where;
S=savings
N.I=net income
In our case;
S=unknown
N.I=$40300 a year
replacing;
S=(20/100)×40,300
S=(0.2×40,300)=$8,060
<em>Step 2: Determine monthly savings</em>
Monthly savings=annual savings/number of months in a year
where;
Monthly savings=unknown, to be determined
annual savings=$8,060
number of months in a year=12
replacing;
Monthly savings=(8,060/12)=$672 per month
Carol should save $672 per month.
Answer:
LPD's projected gross profit for April is $70.000 (B)
Explanation:
We can define Gross Profit as follows:
<u>Sales - Cost of goods sold</u>
In our case, we need to find the gross profit for April:
Projected Sales: $350.000
Cost of goods: <u> -$280.000 ($350.000 * 80%)</u>
Gross Profit: $ 70.000
The other information can help us to define cash management, because they are related with payments, for example: sales collected, cost payments or cash balance.
The correct answer should be d. Identify the problem.