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3 years ago

Garrett Company provided the following information:

Business

1 answer:

Shalnov [3]3 years ago

8 0

Answer:

Correct option is C

Overall operating income will decrease by $25,000.

Explanation:

Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3

Sum of sales ratio = 2+3 = 5

Common fixed cost:

Product 1 = 2/5×46,000 = $18,400

Product 2 = 3/5×46,000 = $27,600

Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000

Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)

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When a country can produce a product more cheaply than its trading partners, it is known as __________?

Mashutka [201]

When a country can produce a product more cheaply than its trading partners, it is known as: comparative advantage
For example, United States often imported exotic fruits from Brazil. Since Brazil is a tropical country, the cost in producing exotic fruits will be significantly lower compared to growing it in the United States. Therefore, we can say that brazil has a comparative advantage in this product compared to united states.

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3 years ago

Charismatic leaders are often _____ than transactional leaders.

hram777 [196]

I had a quiz like this back in 9th grade, even though what goes in the blank is less predictable. Glad to help :)

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3 years ago

A comparable property sold one month ago for $400,000. That property has a three-car garage, whereas the subject property you’re

tatuchka [14]

Answer:

The use of comparable analysis in real estate considers value of all components of comparable properties, and estimate price based on sum of features of each property.

So for the $400,000 property that has 3 car garage, we will need to find out the value of one garage.

Then since the garage size is the only difference between the two properties, adjust price downwards by deducting the value of one garage.

Explanation:

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3 years ago

A trader sold short a cotton futures contract @ 76.98 cents per pound. Contract size is 50,000 pounds. How much does the trader

shutvik [7]

Answer:

$6360

Explanation:

Contract value when the trader sold short = 76.98c * 50000 = $38,490

Contract value when he closed out his contract = 64.26c * 50000 = $32,130

Since the trader had sold short, he is speculating that the price of the futures contract will go down. The value of the contract did go down (in the traders favor) so the difference in value when he sold short and when he closed out his contract will be the profit gained in dollars. Please note that the initial futures prices are quoted in cents and would need to be converted to dollars by dividing by 100c i.e. 3,213,000c = $32,130

Therefore the profit made by the trader in dollars is $38,490 - $32.130 = $6360

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3 years ago

Assume that cash is paid for rent to cover the next year. The appropriate debit and credit are:

vitfil [10]

Answer:

The correct answer is letter "B": Debit Prepaid Rent, credit Cash.

Explanation:

Prepaid rent is the rent paid in advance. Usually, rent payments are made every month by the beginning of the month but other timeframes can also be agreed upon the lease. Prepaid rent is debited to prepaid assets and credited to accounts payable. When the check for the payment is cut, accounts payable is debited and a cash account is credited.

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3 years ago