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2 years ago

What condition is being met when goods are being produced and sold at the lowest possible average cost?

1 answer:

6 0

The condition that is being met is PRODUCTIVE EFFICIENCY. Productive efficiency refers to a situation in which production is carried out without waste. In this situation, when the average cost of production is reduce to the barest minimum, the economy will be operating on the production possibility frontier.

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Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina

34kurt

Answer:

The estimated inventory at the end of February is $73400 as shown below

Explanation:

Beginning Inventory $57,800

Plus: Net purchases $120000

Freight-in $2,700

Cost of Goods Available for Sale $180500

less: Cost of Goods Sold

Net Sales$180000

Less Estimated Gross Profit $81000

Estimated Cost of Goods Sold $99000

Estimated Inventory before Theft 81500

Less: Stolen Inventory 8,100

Estimated Ending Inventory 73400

Gross profit $180000*45%=$81000

8 0

3 years ago

Problem 14-13 Calculating the WACC [LO3] Dinklage Corp. has 4 million shares of common stock outstanding. The current share pric

sleet_krkn [62]

Answer:

WACC = 8.97%

Explanation:

total value of equity = $70 x 4,000,000 = $280,000,000

cost of equity:

$70 = $4.4935 / (Re - 4.5%)

Re - 4.5% = 6.42%

Re = 10.92%

total value of debt:

$75 million x 0.95 = $71,250,000

YTM = {70 + [(1,000 - 950)/25]} / [(1,000 + 950)/2] = 72 / 975 = 7.3846%

$60 million x 1.07 = $64,200,000

YTM = {60 + [(1,000 - 1,070)/8]} / [(1,000 + 1,070)/2] = 51.25 / 1,035 = 4.9517%

weighted cost of debt = ($71,250,000 / $135,450,000 x 7.3846%) + ($64,200,000 / $135,450,000 x 4.9517%) = 3.8845% + 2.347% = 6.2315%

total value of the firm = $280,000,000 + $135,450,000 = $415,450,000

equity weight = $280,000,000 / $415,450,000 = 0.674

debt weight = 1 - 0.674 = 0.326

WACC = (0.674 x 10.92%) + (0.326 x 6.2315% x 0.79) = 7.36% + 1.605% = 8.965% = 8.97%

8 0

3 years ago

Accounting subject , please help me

suter [353]

SORRY BUT I DONT NOW

DO YOU WANT BE FRIEND WITH ME?

6 0

2 years ago

The management at Climate Action Development needs to recruit campaign managers for its Renewable Energy Project. They are looki

Rzqust [24]

Answer: (E) Personality

Explanation:

According to the question, the personality is one of the characteristics of the person that refers to the behavior, emotions, thinking and feelings in the environment.

By evaluating the personality of the individual person we can judge there ability and understand their characteristics.

It is also known as the personality psychology for evaluating the characteristics of the person for recruiting the right candidate for the specific profile by testing the individual person personality factor.

Therefore, Option (E) is correct.

5 0

3 years ago

Truman Co. sells a large number of common household items, while Stapleton sells a small number of expensive items. The two comp

slava [35]

Answer:

Truman has a higher inventory turnover ratio and Stapleton has a higher gross profit ratio ( D )

Explanation:

Truman sell a large number of common household items ( assuming 100 unit )

while Stapleton sells a small number of expensive items ( assuming 20 units )

lets assume : Truman sells at $5 per unit and Stapleton sells at $50 per unit

with the above assumptions

Truman gross profit ratio = $5 * 100 units = $500

Stapleton gross profit ratio = $50 * 20 units = $1000

from the above assumptions you can deduce that the gross profit made by Stapleton is higher although he sells a smaller amount of goods while Truman has a higher Turnover because of its higher number of sold units

4 0

3 years ago

What condition is being met when goods are being produced and sold at the lowest possible average cost​?

What condition is being met when goods are being produced and sold at the lowest possible average cost?