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4 years ago

Economies of scale give an advantage to what type of company? (Select the best answer.)

Business

1 answer:

zalisa [80]4 years ago

6 0

Answer:

A company that makes many sales

Explanation:

Economies of Scale refer to the cost advantage , a firm experience when it increases its level of output. This advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost.

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One of the most important applications of ratio analysis is to compare a company's performance with that of other players in the

wlad13 [49]

Answer: a. percentage change analysis.

B. Blue Hamster Manufacturing Inc.’s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.60 to 0.38.

D. A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors

Explanation:

1. The analysis which has to do with the calculation of the growth rates of all items from balance sheet and the income statement which is relative to a base year is referred to as the percentage change analysis.

2. The statements that can be included in the analysis report from the question include:

• Blue Hamster Manufacturing Inc.’s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.60 to 0.38

• A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors.

4 0

3 years ago

Dash of Style, a leather products company in the U.S, imported leather goods worth $ 10,000 from China. When the consignment rea

navik [9.2K]

Answer:

.... the company had to pay a tax on the imports.

Explanation:

8 0

3 years ago

Read 2 more answers

Which of the following is a potential benefit of inflation?

Vsevolod [243]

Potential benefit of inflation will be the D More business profits.

During inflation, the average cost of the products that exist in the market would be increased.Because of this, the average net income of the businesses that produced it will also be increased.

4 0

3 years ago

Emerald corporation's current ratio is 0.5, while ruby (emerald's competitor) company's current ratio is 1.5. Both firms want to

ruslelena [56]

Answer:

b. Only Emerald Corporation's current ratio will be increased.

Explanation:

Given that

Emerald current ratio is

= 0.5 i.e. = 0.5 ÷ 1

now in case when the current liability is doubles , so the current assets is

= 0.5 + 1 = 1.5

And, the cuurrent liabilities is

= 1 + 1

= 2

so new ratio is

= 1.5 ÷ 2

= 0.75

Now

Ruby current ratio is

= 1.5

i.e. = 1.5 ÷ 1

Now in case when the current liability is doubled,

the current assets is

= 1.5 + 1

= 2.5

And, current liabilities is

= 1 + 1

= 2

Now new ratio is

= 2.5 ÷ 2

= 1.25

Therefore the emerald current ratio is rised from 0.5 to 0.75

And, the Ruby's ratio has decline from 1.5 to 1.25

7 0

3 years ago

TH Manufacturers expects to generate cash flows of $129,600 for the next two years. At the end of the two years the business wil

arsen [322]

Answer:

Vo = C1 + C2 + V2

1 + k (1 + K)2

Vo = $129,600 + $129,600 + $3,200,000

1 + 0.14 (1 + 0.14)2

Vo = $113,684.21 + $2,562,019.08

Vo = $2,675,703.29

The correct answer is C

Explanation:

The current value of the business equals cashflow in year 1 divided by 1 + K plus the aggregate of cashflow and sales value in year 2 divided by 1 + k raised to power 2.

7 0

3 years ago