Answer:
A. The crossover point in units is 9000 units
B. Alternate B or Proposal B should be chosen
Explanation:
a.
Let x be the number of units.
The profit equation for option 1 can be written as (20-11)x - 62000
The profit equation for option 2 can be written as (20-14)x - 35000
The crossover point is where both optons yield equal profit thus equation 1 = equation 2.
(20-11)x - 62000 = (20-14)x - 35000
9x - 62000 = 6x - 35000
9x - 6x = 62000 - 35000
3x = 27000
x = 27000 / 3
x = 9000 units
b.
At 8300units,
Profit from proposal A is = 9(8300) - 62000 = 12700
Profit from proposal B is = 6(8300) - 35000 = 14800
Thus option B is more profitable at this unit.
The limited partnership should be adopted by the individuals.
The following information related to the limited partnership is as follows:
- It existed at the time when two or more partners are gone for the business altogether but the limited partner should be liable to the maximum amount they invested.
- It involved the limited partners & the general partner that have the non-limited liability.
Therefore we can conclude that the limited partnership should be adopted by the individuals.
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Answer:
21.28%
Explanation:
Note: <em>Assuming 365 day year</em>
Cost of giving up cash discount = [Discount rate / (1-Discount rate)] * 365 / [Credit period - Discount period]
Cost of giving up cash discount = [0.02/(1-0.02)] * [365/(45-10)]
Cost of giving up cash discount = [0.02/0.98] * [365/35]
Cost of giving up cash discount = 0.0204082 * 10.42857
Cost of giving up cash discount = 0.212828
Cost of giving up cash discount = 21.28%
The expected completion time of a project is 40 weeks and the variance of its critical path activities is 9.Project completion time is 42.0325 weeks.
Variance of its critical path activity 9 weeks.
Therefore, Standard deviation of its critical path activity = Square root ( variance) = Square root (9) = 3
Project completion time with 5% certainty means probability of project completion - 0./5 Corresponding z value for probability of 0.75 = NORMSINV ( 0.75) = 0.6745
Therefore, project completion time with 75% certainty = Expected completion time of the project .
Value x Standard deviation of critical path activity = 40 weeks * 0.6745 x 3 weeks = 40-2.0235 = 42.0325 weeks
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Answer: The matching principle (B)
Explanation:
Matching principle states that all expenses must be recorded in the same period as the revenue that was earned
