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3 years ago

"which always increase(s) as output increases?"

Business

1 answer:

marta [7]3 years ago

6 0

Answer: d. total cost and variable cost

A variable cost<span> is a company expense that changes in parallel with production output. They rise as production increases.</span>

Total cost<span> refers to the total company expense incurred in producing a particular level of output. Same with the variable cost, it increases as production increases.</span>

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Southern Wear stock has an expected return of 15.1 percent. The stock is expected to lose 8 percent in a recession and earn 18 p

kari74 [83]

Answer:

15.26%

Explanation:

Given:

Expected return = 15.1% = 0.151

Expected loss in recession = - 8% = - 0.08 [negative sign depicts loss]

Expected earning in a boom = 18% = 0.18

Probabilities of a recession = 2% = 0.02

Probabilities of a normal economy = 87% = 0.87

Probabilities of a boom = 11% = 0.11

Now,

Expected return = ∑ (Probability × Return)

0.151 = 0.02 × ( - 0.08) + 0.11 × 0.18 + 0.87 × Return on normal economy

0.151 = - 0.0016 + 0.0198 + 0.87 × Return on normal economy

0.151 - 0.0182 = 0.87 × Return on normal economy

Return on normal economy = 0.1526

= 0.1526 × 100%

= 15.26%

4 0

3 years ago

In Country X a returning tourist may import goods with a total value of $500 or less tax free, but must pay an 8 percent tax on

Morgarella [4.7K]

Answer:

$18.4

Explanation:

Data provided in the question:

Maximum value on which there is no tax = $500

Tax paid on the portion of the total value in excess of $500 = 8% = 0.08

Total value of the goods imported by the returning tourist = $730

Now,

The excess amount of portion on which the tax will be charged

= Total value of the goods imported - Maximum value on which there is no tax

= $730 - $500

= $230

Therefore,

@8% tax rate

Total tax that must be paid on excess portion i.e $230

= $230 × 8%

= $230 × 0.08

= $18.4

7 0

4 years ago

You are analyzing ABC Company, a computer manufacturer. You notice that inventory turnover this year is significantly lower than

nexus9112 [7]

Answer:

ABC Company

1. Observation: Current year's inventory turnover is significantly lower than those of previous years.

Explanations:

1. Lower inventory turnover implies weaker sales for the current period than those of previous years.

2. Lower inventory turnover results from excessive inventory, which increases storage costs and interest expenses.

3. The ratio may also indicate that the demand for the product is declining rapidly. Many reasons can be adduced for this situation. Little marketing efforts, bad product, and lack of product competitiveness.

a) The formula for computing the inventory turnover equals Cost of goods sold/Average Inventory. The ratio shows the number of times goods are sold in a period. When goods are sold more frequently, sales activities increase, including revenue and profit.

2. Observation: Also current year's accounts receivable turnover is significantly lower than in previous years.

Explanations:

1. Billing inefficiency can contribute to lower accounts receivable turnover.

2. Poor credit policy may give rise to inefficient collection process, excessive bad debts, long credit days, bad customers, and lack of incentives to customers to settle their invoices.

3. Lastly, lower accounts receivable turnover may point to declining demand of the product by customers.

b) The formula for calculating the accounts receivable turnover is Net Credit Sales divided by Average receivables. The ratio determines the effectiveness of the company's credit policy.

6 0

3 years ago

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $16,500. Jarden prepares a sche

Anton [14]

Answer:

Jarden Co.

a. The required balance of the Allowance for Doubtful Accounts at December 31, using an aging of accounts receivable is:

= $44,598.

b. Adjusting Journal Entry:

Debit Bad Debts Expense $28,098

Credit Allowance for Doubtful Accounts $28,098

To record the bad debts expense and bring the Allowance for Doubtful Accounts to a credit balance of $44,598.

Explanation:

a) Data and Calculations:

Allowance for Doubtful Accounts, credit balance = $16,500

Accounts Age of Accounts Expected Uncollectible

Receivable Receivable Uncollectible Allowance

Percent

$880,000 Not yet due 1.30% $11,440 ($880,000*1.30%)

352,000 1 to 30 days past due 2.05 7,216 ($352,000*2.05%)

70,400 31 to 60 days past due 6.55 4,611 ($70,400*6.55%)

35,200 61 to 90 days past due 33.00 11,616 ($35,200*33.00%)

14,080 Over 90 days past due 69.00 9,715 ($14,080*69%)

$1,351,680 $44,598

Adjustment:

Ending balance $44,598

Beginning balance $16,500

Bad Debts Expense $28,098

6 0

3 years ago

Given the following data for Harder Company, compute cost of goods manufactured:

Slav-nsk [51]

Answer: Cost of goods manufactured = $520000

Explanation:

Given that,

Direct materials used = $120,000

Beginning work in process = $20,000

Direct labor = $200,000

Ending work in process = $10,000

Manufacturing overhead = $180,000

Beginning finished goods = $25,000

Operating expenses = $175,000

Ending finished goods = $15,000

∴ Cost of goods manufactured = Direct materials used + Beginning work in process + Direct labor - Ending work in process + Manufacturing overhead + Beginning finished goods - Ending finished goods

= $120,000 + $20,000 + $200,000 - $10,000 + $180,000 + $25,000 - $15,000

= $520000

7 0

3 years ago