Answer:
Mainline should recognize a revenue of $32 million in 2012.
Explanation:
percentage-of-completion method:
Total Expenses = $60 million
Expenses during the Year 2012 = $24 million
Percentage of complition = 24/60
= 40%
Revenue can be recognised = $80 million*40%
= $32 million
Therefore, Mainline should recognize a revenue of $32 million in 2012.
Answer:
A mix hedge reduces levels of expensive FG inventory while slightly increasing component inventories.
A mix hedge is a planning technique which supports increased production flexibility
Explanation:
Hedging inventory implies a level of inventory that is kept to shield against unexpected event such as breakdown of machines,strikes,surge in demand for product or non-availability of raw materials due to disruption in supplier's business.
However, mix hedge is required to ensure the right of mix of inventories at every point in time so as to avoid investing more than required resources in inventory by keeping low volume of expensive items of inventory and at the same time increasing the number of inventories kept overall,such that risk associated with inventory can be shared by a number of items of inventory instead of a single line of inventory.
Answer:
The flood shifts the supply to the left.
The increase in healthcare costs shifts the supply curve to the left.
Explanation:
An increase in the cost of production inputs (increase in health costs) or a decrease in the availability of resources (the flood reduced the firm's production capability), will shift the supply curve to the left.
A leftward shift of the supply curve will lower the quantity supplied and will increase the price of the good at every level of demand.
Which of the following is classified as an equitable remedy?
Answer: B. Reformation
