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mariarad [96]
3 years ago
10

Kendra’s Quilts makes custom baby quilts embroidered with the baby’s name and date of birth. The company is considering the purc

hase of a new embroidery machine that costs $75,000. The increased efficiency of the new machine would allow the company to increase revenue by 50%, from $250,000 to $375,000 annually. Direct labor costs would increase by $15,000, and fixed costs (not including depreciation on the machine) would increase by $12,500. Factory rent is $12,000 per year. Should the company purchase the machine?
Business
1 answer:
maxonik [38]3 years ago
8 0

Answer:

They should purchase the machine.

Explanation:

Giving the following information:

The company is considering the purchase of a new embroidery machine that costs $75,000. The increased efficiency of the new machine would allow the company to increase revenue by 50%, from $250,000 to $375,000 annually. Direct labor costs would increase by $15,000, and fixed costs (not including depreciation on the machine) would increase by $12,500.

Effect on income= 125,000 - 75,000 - 15,000 - 12,500= $22,500

They should purchase the machine.

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There were initially two satellite radio providers in the U.S. market, Sirius and XM Radio. The firms merged to form one firm, a
Delicious77 [7]

Answer: a. The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers.

Explanation:

A merger occurs when two companies comes together and becomes one. This is done in order to expand the recah of a company, gain a market share, and also expand into new segments.

The plausible reasons for the limited impact of the merger will be because the merger will lead to the operation at a higher capacity which will ensure that there's cost reduction through economies of scale which will be beneficial to the consumers.

7 0
3 years ago
The rate of interest agreed upon contractually charged by a lender or promised by a borrower is the​ ________ interest rate. A.
finlep [7]

Answer: The correct answer is d) NOMINAL

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It is the contractual interest rate charged by a lender or promised by the borrower.

3 0
3 years ago
Based on the following data, what is the amount of current assets? Accounts payable……………………………………………………….. $62,000 Accounts rece
Vlad1618 [11]

Answer:

The amount of current assets are $252,000

Explanation:

Current assets: The current assets are those assets who are converted into cash within one year. Like - accounts receivable, cash, inventory, prepaid insurance, etc.

The total amount of the current assets are shown below:

= Accounts receivable + Cash + Inventory +  Short-term investments + Prepaid insurance

= $100,000 + $70,000 + $80,000 + $2,000

= $252,000

The other items represent current liabilities, long term liabilities, intangible assets, and the fixed assets so, we do not consider them in the computation part.

4 0
3 years ago
Which of the following accounts would not appear on a schedule of cost of goods manufactured?
kotykmax [81]

The following accounts would appear on a schedule of cost of goods manufactured- Depreciation of factory equipment

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<u>The cost of goods manufactured (COGM) schedule</u> is used to calculate the cost of all the items produced during a given reporting period.

<u>The cost of good manufactured schedule</u> gives companies an idea about their production cost(i.e whether it is too high or low) in relation to the sales they are making

<u>The formula to calculate the COGM i</u>s:

Add: Direct Materials Used

Add: Direct Labor Used

Add: Manufacturing Overhead

Add: Beginning Work in Process (WIP) Inventory

Deduct: Ending Work in Process (WIP) Inventory

= COGM

7 0
3 years ago
Regardless of income or wealth, setting aside some portion of current income regularly for future use helps in developing good _
sdas [7]

Regardless of income or wealth, setting aside some portion of current income regularly for future use helps develop good income savings.

Personal saving is the money left over after people spend their money and pay their taxes. The personal saving rate is the percentage of disposable income that people save. This rate is used to learn about Americans' financial health and to forecast consumer behaviour and economic growth. the average saving rate by income or wealth class The dotted line represents the frequently stated 4% number, which comprises the poorest 90% of income earners. The top 10% to top 1% of income earners save about 12%, which I find relatively low. Only the top 1% holds a fantastic 38%.

Learn more about Personal saving here:

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5 0
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