Answer:
The 50.30 days are required to take its credit customers to pay for their purchases.
Explanation:
For computing the average collection period, we have to use the formula of the average collection period.
Average collection period = Average accounts receivable ÷ Credit sales × total number of days in a year
= $107,900 ÷ $783,000 × 365
= 0.13780 × 365
= 50.30 days
We assume 365 days in a year
The cost of goods sold is irrelevant. Thus, it is not considered in the computation part.
Hence, 50.30 days are required to take its credit customers to pay for their purchases.
Answer:
$940 Favorable
Explanation:
Fixed manufacturing overhead budget Variance = Budgeted fixed overhead cost - Actual total fixed manufacturing overhead cost
Fixed manufacturing overhead budget Variance = $71,500 - $70,560
Fixed manufacturing overhead budget Variance = $940 F
So, the fixed manufacturing overhead budget variance for the period is closest to $940 F
Answer:
maximum income is $900
Explanation:
given data
oil change = $20
per day = 40 customer
increase = $ 2
dailer customers = 2
owner charge = $ 2
to find out
income from the business
solution
we know current income is 40 × 20
current income = $800
we consider here price increase x and income as function y
so y = (20 +2x) × ( 40 - 2x) ........1
y = −4x² + 40x + 800
take derivative and put dy/dx = 0 for maximum
dy/dx = -8x + 40
0 = -8x + 40
x=5
so here from 1
y = (20 +2x) × ( 40 - 2x)
y = (20 +2(5)) × ( 40 - 2(5))
y = 30 × 30
y = 900
so maximum income is $900
Answer: 0.755
Explanation:
From the information given, the current per share value of the option if it expires in one year will be calculated as follows:
Firstly, we calculate the present value which will be:
= $28 / ( 1 + 0.05 )
= $28/1.05
= $26.667
The number of options needed will be:
= ( 34 - 28 )/ ( 4-0)
= 6/4
= 1.5
Therefore,
27.80 = (1.5 x Co) + [28 / (1+0.05)]
27.80 = 1.5Co + (28/1.05)
27.80 = 1.5Co + 26.667
1.5Co = 28.0 - 26.667
1.5Co = 1.1333
Co = 0.755
Therefore, the answer is 0.755
