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Semenov [28]
3 years ago
10

Because Mei-ling has had such a successful first few months, she is considering other opportunities to develop her business. One

opportunity is the sale of fine European mixers. The owner of Generous Supply Co. has approached Mei-ling to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately RM575, and Mei-ling would sell each one for RM1,150. Mei-ling comes to you for advice on how to account for these mixers.
Mei-ling asks you the following questions.
1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" Why?
2. "I’ve learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?"
3. "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"
Business
1 answer:
rosijanka [135]3 years ago
7 0

Answer:

1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" Why?

The mixers will be part of merchandise inventory since Mei-ling is purchasing them and will later resell them at a higher price and hopefully make a profit. Products classified as supplies or equipment are used by the company in their day to day activities and are not meant for resale.

2. "I’ve learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?"

The perpetual inventory system is much better than the periodic inventory system, but it is also more expensive to use. Depending on the number of mixers that are going to be sold, you can do it hand or use a computer software which would make things much easier, but you need to spend time (labor) and money to do so.

If Mei-ling is expecting to sell only a small number of mixers, then she could use a periodic inventory system which is much more simple and is only updated every certain period of time (monthly, quarterly, semiannually or annually). This is a cheaper system but it is the best alternative.

3. "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"

Even if you use the perpetual inventory system, you will eventually need to physically count your inventory in order to make sure that the records have been properly made, but you could do it once or twice a year. Again it depends on the total units that she expects to have in inventory.

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In order to produce a new product, a firm must lease equipment at a cost of $100,000 per year. The managers feel that they can s
bezimeni [28]

Answer:

$73 = unitary variable cost

Explanation:

<u>To calculate the unitary variable cost that will yield the break-even point, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

50,000= 100,000 / (75 - unitary variable cost)

3,750,000 - 50,000unitary variable cost= 100,000

3,650,000 = 50,000unitary variable cost

$73 = unitary variable cost

5 0
3 years ago
A monopoly industry:A. has very significant barriers to entry. B. faces a downward sloping demand curve. C. produces a product f
Kryger [21]

Answer:

The correct answer is option E.

Explanation:

A monopoly is a market where there is only single producer or seller. There are restrictions on entry in the market. The firms in the monopoly are price makers. That is why they have a downward sloping demand curve.

There are no close substitutes for the product and there is only one seller in the monopoly.

The firm may earn profit or loss or profits in the short run based on its revenue and cost conditions.

So, all the options given are correct.

7 0
3 years ago
Other things being equal, foreign governments and corporations would demand ____ U.S. funds if their local interest rates were s
inessss [21]

Other things being equal,foreign governments and corporations would demand <u>More</u> U.S.funds if their local interest rates were suddenly higher than U.S. rates.For a given foreign interest rate level,foreign demand for U.S. funds is <u>inversely </u>related to U.S.interest rates.

Answer: More;inversely

<u>Explanation:</u>

U.S. funds represent the funds that are available for borrowing and interest rates means cost of those borrowings.Other countries can buy U.S funds.There is inverse relationship between U.S. interest rates and foreign  demand for U.S. funds.If U.S. interest rates are higher than a given foreign interest rate, than foreign governments will demand less of U.S funds because it will be costlier.But on the other hand if U.S.interest rates are less than a given foreign interest rate,than other countries will demand more of U.S. funds because it will be cheaper for them.

So demand curve for U.S funds and U.S interest rates is downward sloping.It has negative slope.

5 0
3 years ago
WILL GIVE BRAINLIEST !!!!!
sergij07 [2.7K]
You can spend money on things you need first instead of the things you want. Most people spend their pay on things that they want rather than getting something they need this leads to financial problems. Another way is to put at least $20 in the bank every paycheck. This way if something bad happens and you need to pay for it then you have the extra money in your bank. Daily spending can be a bad thing because you are constantly spending and never saving money, and life is full of surprises so you need to save money as well for preparation. 

Hope this helped. Have a great day!
4 0
3 years ago
Read 2 more answers
Various financial data for Year 1 and Year 2 follow. Calculate the total productivity measure and the partial productivity measu
Ber [7]

Answer:

See below

Explanation:

With regards to the above, the formula for total productivity measure is

= Output Sales( Total output) / Total Input

Total productivity measurement for Last year.

Output sales = $200,000

Total input = Input labor + Raw materials + Energy + Capital + others

= $30,000 + $35,000 + $5,000 + $50,000 + $2,000

= $122,000

Therefore, total productivity measure

= $200,000/$122,000

= 1.64

Total productivity measurement for this year

Output sales= $220,000

Total input = Input labor + raw materials + energy + capital + others

= $40,000 + $45,000 + $6,000 + $50,000 + $3,000

= $144,000

Therefore, total productivity measure

= $220,000/$144,000

= 1.53

Partial productivity for last year

Output sales = $200,000

Input = Input labor + raw materials + capital

= $30,000 + $35,000 + $50,000

= $115,000

Partial productivity measure = $200,000/$115,000

= 1.74

Partial productivity measure for this year

Output sales = $220,000

Input = Input labor + raw materials + capital

= $40,000 + $45,000 + $50,000

= $135,000

Therefore, partial productivity measurement for last year

= $220,000/$135,000

= 1.63

The above measures indicates that there is a reduction in total productivity measures from last year to this year. Same applies to partial productivity measures for both years.

8 0
3 years ago
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