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3 years ago

HELLLPPP What are fixed assets?

2 answers:

8 0

Fixed assets are mostly things every businessman or company buys. There are the things they use specifically for there company. Companies use them until they just wear out, get broken, or get old.

Example: Most Clothes store companies buy lots of cloth hangers. They buy them in order to hang all the cloths in the store. These hangers are used for a long period. They only are stopped using if broken.

Hope this helps!

-Your Brainly User.

Julli [10]3 years ago

3 0

Hey there, here is my brief explanation for you:

Fixed assets are mostly things that are purchased to use for a long period of time. These items are used in business and can be classified as property, plant, or equipment. Fixed assets are things that are bought and meant not to be sell-able or at least not easily. Fixed assets are bought for personal business use and usually are not likely to be sold.

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Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs o

Gnesinka [82]

Answer:

Using equation method we have,

Sales - variable cost = Fixed Cost

Let number of units be X, at break even then,

$150 X - ($60 + $18) X = ($480,000 + $240,000)

$150 X - $78 X = $720,000

$72 X = $720,000

X = $720,000/$72 = 10,000 units.

Using contribution income statement

Contribution margin per unit approach = Selling price - Variable cost = Contribution = $150 - $60 - $18 = $72 per unit

Total fixed cost = Fixed Manufacturing cost + Fixed Selling & Administrative

= $480,000 + $240,000 = $720,000

Break Even Point = $\frac{Fixed\ Cost}{Contribution\ Per\ Unit}$

= $\frac{720,000}{72} = 10,000$

Contribution margin Income Statement:

Sales value = $150 $\times$ 10,000 = $1,500,000

Less: Variable Cost

Manufacturing = $60 $\times$ 10,000 = ($600,000)

Selling Expense = $18 $\times$ 10,000 = ($180,000)

Contribution Margin = $720,000

Less: Fixed Cost

Fixed Manufacturing Cost = ($480,000)

Fixed Selling Expense = ($240,000)

Profit = $0

8 0

4 years ago

AllCity, Inc., is financed 39 % with debt, 11 % with preferred stock, and 50 % with common stock. Its cost of debt is 6.1 %,

elena-14-01-66 [18.8K]

Answer:

Cost of debt (Kd) = 6.1%

Cost of preferred stock = Dividend paid

Current market price

= $2.53

$33

= 0.0767 = 7.67%

Risk-free rate (Rf) = 2.2%

Beta (β) = 1.11

Market risk premium (Rm - Rf) = 6.7%

Cost of equity (Ke) = Rf +β(Rm - Rf)

Cost of equity (Ke) = 2.2 + 1.11(6.7)

Cost of equity (Ke) = 9.637%

WACC = Kd(D/V)(1-T) + Kp(P/V) + Ke(E/v)

WACC = 6.1(39 /100)(1 -0.35) + 7.67(11/100) + 9.637(50/100)

WACC = 1.55 + 0.84 + 4.82

WACC = 7.21%

Explanation:

In this case, cost of debt has been given. Cost of preferred stock is calculated as current dividend paid divided by current market price.

Cost of equity is calculated based on capital asset pricing model, which is Risk-free rate plus beta multiplied by the market risk premium.

WACC equals after-tax cost of debt multiplied by the proportion of debt in the capital structure plus cost of preferred stock multiplied by the proportion of preferred stock in the capital structure plus cost of equity multiplied by proportion of equity in the capital structure.

4 0

4 years ago

Identify and explain two reasons why effective communication within a business is important to the management

steposvetlana [31]

Answer:

Why effective communication within a business is important to the management?

In order to attain your objectives, it is critical to communicate well during negotiations. Within the business, communication is also crucial. Effective communication can aid in the development of a positive working connection between you and your employees, which can enhance morale and productivity.

Explanation:

It Builds and Maintains Relationships: Positive interactions with people help to form and maintain relationships. Communication will be crucial in this process; without it, it would be difficult to build and maintain fruitful partnerships. Communication is an important component of any relationship. Two people cannot be friends until they begin to communicate with one another. A supervisor-underling relationship is similar, in that the boss should be able to explain how to do his job to a new office worker.

It Facilitates Innovation: Collaboration and innovation inside the unit or organisation can be improved when employees feel free to express themselves. Employees, for example, will be able to share their ideas on how to improve a company process. Furthermore, if employees are unable to communicate their ideas owing to a lack of communication skills, the idea is unlikely to be fully implemented.

3 0

2 years ago

Gregson production is keenly aware of the need to daily strive to produce goods and services more effectively than its competito

katrin [286]

I think there should be an options to choose. Anyway I think, I've got what you mean. I think that the answer is: to achieve this standard, gregson's management strives to maintain quality and efficiency.

8 0

3 years ago

The term given to units that represents the number of completed units that is equal, in terms of production inputs, to a given n

SIZIF [17.4K]

Answer:

The answer is EQUIVALENT UNITS (not included as an option).

Explanation:

Equivalent units are the complete units that could have been produced or manufactured during a period of time given the amount of manufacturing inputs (materials, labor) used.

For example, we have 100 nits that are 40% completed in relation to direct labor and direct materials, we could say that we have 40 equivalent units.

4 0

3 years ago