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vlabodo [156]
3 years ago
6

Select the correct statement regarding fixed costs. Multiple Choice

Business
1 answer:
Ronch [10]3 years ago
8 0

Answer:

The fixed cost per unit decreases when volume increases.

Explanation:

As the name implies the fixed cost are a constant value.

They total cost do not change by the activity of the business

Using common sense we can already notice that if do not change with volume at the total level, it is better to produce as much as possible to generate a better use of the fixed cost.

Now moving to the unit cost, this is calculate by dividing the fixed cost by the volume

\frac{Fixed Cost}{Volume} = Unit Fixed Cost

As the volume increase the quotient decrease because, the same number is divided by a bigger figure.

So the unit fixed cost are smaller.

<u>EXAMPLE</u>

If a factory cost 1,000,000 per month

and only produce 1 chair, then the cost of that chair was 1,000,000

while if the production is 500,000 chairs the cost is 2 per chair.

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Analyse TWO benefits of being employed in an education sector (2×2=4)
chubhunter [2.5K]

Answer:

Benefits of being employed in the education sector include:

1)Being Exposed to Multiple Perspectives:  Jobs in education tend to expose employees to a wide variety of perspectives and many different opinions.

2) Stable Schedule: Employees in the education sector can rely on a reliable work schedule with stable hours and little overtime. In the education sector, you do not have to work over time. The timings are exact and flexible along with the weekends off.

7 0
3 years ago
Suppose your bank account pays interest monthly with an effective annual rate of 6%. What amount of interest will you earn each m
Bess [88]

Answer:

0.4868%

$615.47

Explanation:

Given that

a. EAR = 6%

Thus,

Equivalent monthly rate = (1 + r)^n - 1

Where r = EAR

Therefore

= (1 + 0.06)^1/12 - 1

= 1.0048675 - 1

= 0.0048675 × 100

= 0.4868%

b. Given that

Monthly rate = 0.4868%

Future value = 100,000

Time = 10 years

Recall that

FV annuity formula = C × (1/r) × ([1 + r ]^n - 1)

Where

C = payment

Therefore

100000 = C (1/0.004868) × ([1 + 0.004868]^120 - 1)

C = 100,000/(1/0.004868) × ([1 + 0.004868]^120 - 1)

C = $615.47 per month

4 0
3 years ago
Read 2 more answers
A subsistence economy is one that ________. A subsistence economy is one that ________. meets its needs without working for wage
BigorU [14]

Answer:

The options in the question are not well aligned,find below question with properly aligned options:

A subsistence economy is one that ________.

a. meets its needs without working for wages and purchasing necessities  

b. meets its needs by overfishing lakes and rivers

c. purchases resources for immediate use

d. meets is needs while causing ecosystem destruction

e. purchases goods and services from others

Hence the correct option is A,meets its needs without working for wages and purchasing necessities  

Explanation:

In a subsistence economy,every household provides for its own basic needs,without any need for specialization that leads to exchange.

Specialization is act of engaging in what one knows how to do best, that way efficiency and effectiveness are guaranteed, as every output would have been given a professional touch.

Exchange is the process by which individuals buys their needs from others using money earned from their own specialty as a medium of exchange

5 0
3 years ago
Red Blossom Corporation transferred its 40 percent interest to Tea Company as part of a complete liquidation of the company. In
skelet666 [1.2K]

Answer:

$200,000 and $500,000      

Explanation:

The computations are shown below:

For gain recognized:

= Fair market value of the received land - corporation basis

= $500,000 - $300,000

= $200,000

For land basis received by Red Blossom corporation:

= $500,000

It records only the fair market value of the land, not the land basis for tea Company so only $500,000 would be considered

8 0
4 years ago
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $153,000 Credit sale
rodikova [14]

Answer:

Balance of allowance for doubtful accounts after Bad debt Expense is $2700

Explanation:

given data

Cash sales=  $153,000

Credit sales = $453,000

Selling and administrative expenses = $113,000

Sales returns and allowances= $33,000

Gross profit = $493,000

Accounts receivable = $140,000

Sales discounts = $17,000

doubtful accounts credit balance =  $1,500

solution

we know here Total Bad Debit = 3% of accounts receivable

that is Total Bad Debit =  0.03 × $140,000

Total Bad Debit =  $4200

so here allowance for doubtful account credit balance = $1500

so

Balance of allowance for doubtful accounts after Bad debt Expense will be

Balance of allowance for doubtful accounts =  $4200 - $1500

Balance of allowance for doubtful accounts  = $2700

6 0
4 years ago
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