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alexandr1967 [171]
3 years ago
11

High-End Fashions, Inc., bought a production line of ankle-length skirts last year at a cost of $500,000. This year, however, mi

niskirts are hot in the market and ankle-length skirts are completely out of fashion. High-End has the option to rebuild the production line and use it to produce miniskirts with a cost of $300,000 and expected revenue of $700,000. How should the company treat the cost of $500,000 of the old production line in evaluating the rebuilding plan
Business
1 answer:
castortr0y [4]3 years ago
6 0

Answer:

the $500,000 that the old production line costed must be treated as a sunk cost. Sunk costs are costs that have already been incurred and the firm cannot recover them no matter what they do. in this case, since ankle-length skirts are out of fashion, the production is useless and is worth $0.

Explanation:

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Your project requires new software. The IT department is going to research options to identify the best solution to work with yo
kondaur [170]

<u>Answer: </u>Consult

<u>Explanation:</u>

RICA is the acronym for Responsibility, Inform, Consult and Accountability. For different projects different categories are provided based on their requirement of involvement in the project. In the new project the IT department in the company provides inputs such as new software application. This work falls under consult in RICA matrix.

Responsibility is based on completion of the given work. Accountability to provide a final answer for the work done. Consult is providing feedback and contribution to the activity. Inform to person who requires information update.

8 0
3 years ago
Suppose a banking system has $100,000 in deposits, a required reserve ratio of 25 percent, and total bank reserves for the whole
scoundrel [369]

Answer:

$0

Explanation:

Given that,

Deposits = $100,000

Required reserve ratio = 25 percent

Total bank reserves = $25,000

Required reserve ratio refers to the ratio of deposits that are kept with the federal reserve.

Required reserves:

= Deposits × Required reserve ratio

= $100,000 × 0.25

= $25,000

Excess reserves:

= Total reserves - Required reserves

= $25,000 - $25,000

= $0

So, there is no excess reserves in this economy.

Money multiplier:

= 1/Required reserve ratio

= 1/0.25

= 4

Therefore, the total money creation potential of this deposit is zero.

8 0
3 years ago
On April 18, Riley Co. made a short-term investment in 440 common shares of XLT Co. The purchase price is $56 per share and the
Alika [10]

Explanation:

General Journal

April 18

Debit Short-term Investments 25,030

Credit Cash 25,030

(440x$56= 24,620+390) = 25,030

May 30 ,

Debit Cash 572

Credit Dividend Revenue 572

1.30×440= 572

8 0
2 years ago
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mamaluj [8]

Answer:

Semi-strong form efficiency.

Explanation:

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6 0
2 years ago
It is estimated that between 1899 and 1924, about 2.1 million italians left the u.s. while almost ____ million arrived.
Semmy [17]
<span>About 3.8 million persons arrived in Italy during the period 1899 and 1924. This amount is far greater that the amount that left during that period.</span>
5 0
3 years ago
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