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3 years ago

Which one of the following is a working capital decision?

Business

1 answer:

CaHeK987 [17]3 years ago

6 0

Answer:

E. How much cash should the firm keep in reserve?

Explanation:

The working capital is the capital decision that is a decision that the firms take to combine the policies and the techniques for the management. And also state how the form should keep and use its resources or reserves and also is a measure of the liquidity of the firm and gives the inventors more information to the analysis.

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A manufacturer has monthly cost of 60,000 and a production cost of 10$ for each unit produced. The product sells for $15/unit.

Andreyy89

Answer:

a. What is the cost function.

C(x) = 10x + 60,000

b. What is the revenue function.

R(x) = 15x

c. What is the profit function.

P(x) = R(x) - C(x) = 15x - 10x - 60,000 = 5x - 60,000

Compute the profit loss corresponding to production level of 10,000 and 14000.

10,000 units produced:

P(10,000) = 5(10,000) - 60,000 = 50,000 - 60,000 = -$10,000

14,000 units produced:

P(14,000) = 5(14,000) - 60,000 = 70,000 - 60,000 = $10,000

4 0

2 years ago

Read 2 more answers

Milar Corporation makes a product with the following standard costs: The company applies variable overhead on the basis of direc

dedylja [7]

Answer:

-$3,547 unfavorable

Explanation:

For the computation of labor rate variance for January first we need to find out the standard direct labor cost which is shown below:-

Standard Direct labor cost = Produced units × Standard quantity of direct labor × Standard price of direct labor

= 3,440 × 0.8 × $33

= $90,816

Labor rate Variance = Standard direct labor cost - Actual labor cost

= $90,816 - $94,363

= -$3,547 unfavorable

Therefore for computing the labor rate variance we simply applied the above formula.

7 0

2 years ago

A stock has an expected return of 14.3 percent, the risk-free rate is 3.9 percent, and the market risk premium is 7.8 percent. w

AysviL [449]

The beta of this stock is 1.33

Given,

Expected Stock Return = 14.3%

Risk free rate of interest = 3.9%

Market Risk Premium = 7.8%

In order to calculate the beta of the stock, a formula is used-

Expected stock return = Risk free rate + beta x ( market return - risk free rate)

Thus, by putting values in the formula, we get

14.3% = 3.9% + beta × 7.8%

Subtract 3.9% from both sides,

14.3% - 3.9% = beta × 7.8%

Or, 10.4% = beta × 7.8%

Thus, after dividing both sides by 7.8%, we get

Beta = 10.4 ÷ 7.8 = 1.33

Therefore, Beta is 1.33

To learn more about stock here:

brainly.com/question/24239991

#SPJ4

7 0

1 year ago

Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.

Alenkinab [10]

Answer: Check attachment

Explanation:

Note that, in the attachment, the total expense was calculated as the addition of the selling expense and the general and administrative expenses. This will be:

= $49700 + $34110

= $83810

Operating income was calculated as:

= Gross profit - Total expenses

= $107200 - $83810

= $23390

Check the attachment for further details.

4 0

3 years ago

WAN YOU TELL THE DIFFERENCE?

mash [69]

Answer:

Why is this so long I don't understand

sorry

8 0

2 years ago