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max2010maxim [7]
3 years ago
7

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

Business
1 answer:
zalisa [80]3 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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Plz solve its timed!!!
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Answer:

Revaluation of assets and liabilities

Explanation:

The main adjustments required at the time of a partner from a partnership firm: Change in the profit sharing ratio. Accounting treatment of goodwill.

5 0
2 years ago
Maggie called her insurance agent after estimating the damages. She had already spent $2,000 on pumping out the water and repair
Sonja [21]

The correct answers are B, E and D

6 0
3 years ago
Read 2 more answers
Which government agency has the authority to ban or seize potentially harmful products and set severe penalties for violation of
Natali5045456 [20]
Answer: (a) FOOD AND DRUG ADMINISTRATION (FDA)

Food and Drug Administration (FDA) is a federal agency of the USA that protects and promotes public health. It also looks over food safety, drug safety, etc. various laws are included in FDA such as Public Health Service Act, Federal Anti-Tampering Act, etc.
4 0
3 years ago
On January 1, 2017, Culver Company issued 10-year, $2,140,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into
Dvinal [7]

Answer:

a) diluted earnings per share = 0

Explanation:

Diluted earnings per share (DEPS) is a recalculation of the basic EPS. The difference between DEPS and EPS is, EPS represents the current position of earnings per share. No changes in number shares and/or earnings in the future are incorporated in the basic EPS.

Whereas DEPS is a representation of  not only the current position of earnings and shares but also includes the commitments an entity has already made whose occurrence may result in an increase/decrease in the amount of earnings and/or number of shares. For example, in the question Culver Company has issued 10-year convertible bonds which right now have no impact on basic EPS but if in the future these bond holders exercise their right of conversion, this would result in an increase in number of ordinary shares hence decreasing/diluting the basic EPS. The entities use DEPS to show shareholders the impact of such commitments on the basic EPS to improve their decision making.

So in 2017 none of the bonds were converted therefore no diluted earnings per share is calculated in 2017.

If all of the bonds were converted in 2017 the DEPS would have been calculated as follows:

The formula for calculating DEPS is as follows;

DEPS = (Net income + interest savings) ÷ number of ordinary shares + increase in ordinary shares as a result of conversion.

Tax savings as a result of conversion=$128400 ($2140000×6%). Because if bond holders convert into ordinary shares then Culver company will not have to pay them interest and hence the amount of interest is saved.

Increase in ordinary shares upon conversion= 29960 ($2140000÷$1000=2140 bonds. Each bond is convertible into 14 shares therefore, 2140×14=29960).

Now Lets calculate DEPS as follows;

DEPS = ($296000+$128400) ÷ 91000+29960

DEPS =$424400÷120960

DEPS = $3.5

5 0
3 years ago
Kenneth Corporation expects to incur indirect overhead costs of $166,400 per month and direct manufacturing costs of $22 per uni
Eva8 [605]

Explanation:

The computation is shown below:

1.  For Predetermined overhead rate

Predetermined overhead rate = (Total estimated manufacturing overhead for 4 months) ÷ (Total number of units)

where,

Total estimated direct manufacturing cost is

= $166,400 × 4 months

= $665,600

And, the total number of units is

= 4,700 units + 8,700 units + 4,300 units + 7,900 units

= 25,600 units

So, the predetermined overhead rate is

= $665,600 ÷ 25,600 units

= $26 per unit

2. Now the allocated cost for each month is shown below:

For January

= 4,700 units × $26

= $122,200

For February

= 8,700 units × $26

= $226,200

For March

= 4,300 units × $26

= $111,800

For April

= 7,900 units × $26

= $205,400

c. Now the total cost per unit is

= $22 + $26

= $48 per unit

5 0
3 years ago
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