Answer:
b. discounting
Explanation:
Your sister has just been told that she will be given a $1,000 bonus next year. She is very eager to know its present value. So, she applies the <u>discounting</u><u> </u>process to estimate the present value of her gift.
Discounting: It is a mechanism used for determine the present value of money, which is going to be paid in future. As debtor use this mechanism to delay payment of creditor for a certain period of time in exchange of some fees or charge to be paid. As time value of money change and it does not remain same.
There are mainly three type of discounting:
- Trade discount
- Quantity discount.
- Cash discount.
Hence in the given case, she applies the discounting process to estimate present value of her gift.
Answer:
The correct option is B. False.
Further explanation is given below in the explanation section.
Explanation:
Offer From ABC Company to XYZ Company:
1,000,000 widgets to sell.
Selling Price of 1 widget = $1.00
Total Price = $1,000,000
Counter Offer from XYZ company to ABC Company.
Selling Price = $0.75
Total Price = 0.75 x 1,000,000 = $750,000
But in the end, ABC company sold its widgets to GHK company.
The correct option to this question is false.
This case is false because here ABC sends an original offer of $1 but XYZ sent a counter offer of $0.75. This counter offer was then duly rejected by ABC.
XYZ cannot again confirm and accept the original offer of ABC because they have already rejected your claim and thus XYZ have to wait until ABC make them another offer.
Answer:
Bricktan Inc.
The total contribution margin if Bricktan chooses the most profitable sales mix is:
= $22,350,000.
Explanation:
a) Data and Calculations:
Basic Classic Deluxe
Sales units 100,000 460,000 170,000
Limited production capacity = 110,000 hours
Units per hour 10 8 4
Sales mix 10 8 4
Contribution per unit $15 $25 $55
Contribution per hour $150 $200 $220
Total production hours 10,000 57,500 42,500
Total contribution margin $1,500,000 $11,500,000 $9,350,000
Total contribution = $22,350,000
Answer:
a. 1, 5 and 7
b. Resources will be allocated inefficiently
c. Differing sizes and capacities
d. Benefits due to economies of scale
e. Reduce prices and improve resource allocation.
Explanation:
The correct combination is 1, 5 and 7. The price of a pure monopoly firm is much higher than that of purely competitive firm because the later is a price taker while the former is a price fixer. Because of this, output of monopoly is lower while the profit margin is higher than that of competitive firm.
Assuming that a pure monopolist and a purely competitive firm have the same unit costs. In the case of a pure monopolist, resources will be allocated inefficiently because the monopolist does not produce at the point of minimum Average Total Cost and does not equate price and Marginal cost.
Even though both monopolists and competitive firms follow the MC = MR rule in maximizing profits, there are differences in the economic outcomes because pure competitors lack capacity and are smaller in size while the monopolist has the capacity to expand inorder to maximize profits.
The costs of a purely competitive firm and a monopoly may be different because the monopolist is capable of taking advantage of cost reduction arising from economics of scale. Pure competitors does not experience economies of scale due to their small sizes.
If a monopoly can experience economies of scale, it can reduce prices beyond that of the pure competitor thereby ensuring a more efficient resource allocation.
Answer:
The inventory turnover for the period is 5
Explanation:
Inventory turnover is the ratio which stated that how many times the company replaces as well as sells the stock of goods during a specific year or period.
The formula for computing the inventory turnover is as:
Inventory turnover = Cost of goods sold / Average inventory
where
Cost of goods sold (COGS) = $9,070,000
Average inventory = $1,814,000
Putting the values above:
Inventory turnover = $9,070,000 / $1,814,000
Inventory turnover = 5
