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expeople1 [14]
3 years ago
6

Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would occur under level production, an

d after tax costs would decline by $36,000, but inventory would increase by $300,000. Wisconsin Snowmobile would have to finance the extra inventory at a cost of 13.5 percent.
A. Determine the extra cost or savings of switching over to level production. Should the company go ahead and switch to level production?

B How low would interest rates need to fall before level production would be feasible?

Business
1 answer:
castortr0y [4]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the image below.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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Which of the following would not be reported as current liabilities on the balance sheet?
olga55 [171]
D. Accounts receivable
6 0
2 years ago
Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows:
GaryK [48]

Answer:

See answer below

Explanation:

1. Degree of operating leverage

Selling price $126,000

Variable cost $50,400

Contribution margin $75,600

Fixed cost $23,000

Net operating income $52,600

Degree of operating leverage = Contribution margin / operating income = $75,600 / $52,600

= 1.44

8 0
3 years ago
Using accrual accounting, expenses are recorded and reported only: _A. when they are incurred and paid at the same time. B. if t
sleet_krkn [62]

Answer:

C. when they are incurred, whether or not cash is paid.

Explanation:

In accrual accounting, expenses are recorded in the moment they are incurred, even if they have not been paid for.

In fact, the term "accrued expense" means an expense that has been incurred, but not yet paid.

One common example of an accrued expense is accrued wages:

Suppose that a firm hires a worker on March 1, for a wage of $1,000 dollars per month, that is due to be paid at the end of the month (March 31). This worker is earning $33 per day. By March 4, the firm should have recorded accrued wages for $132 ($33 x 4 days) even if no payments will be made until March 31.

4 0
3 years ago
Harrison Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information f
nevsk [136]

Answer:                                                                  $

        Retained earnings beginning balance   142,000

        Net loss for the year                                  <u>(14,000)</u>

                                                                              128,000

       Retained earnings ending balance          <u> (122,000)</u>

       Amount of dividend declared                      <u> 6,000</u>

 

Explanation:  In order to calculate the amount of dividend declared, there is need to deduct the net loss for the year from retained retained earnings beginning balance.  Thereafter, we also need to deduct retained earnings ending balance.                                                

8 0
3 years ago
Suppose the U.S. GDP growth rate is faster relative to other​ countries' GDP growth rates. U.S. imports will therefore increase
Leni [432]

Answer:

Option (B) is correct.

Explanation:

If there is an any change in the GDP of a particular nation then as a result this will shift the demand curve. Increase in GDP or an increase in the income level of the people will shift the demand curve for goods rightwards. With the higher level of income, the consumer's demand for goods increases.

Any change in the price level of the goods will affect the quantity demanded for that goods and there is a movement along a demand curve.

5 0
3 years ago
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