Answer:
The correct answer is C)
Explanation:
Given that the price for bananas is cheaper in Guatemala, suppliers will be driven to make a quick profit just by buying from the Guatemalan market to sell in the Honduras economy.
This, however, will cause the prices of bananas to rise in Guatemala. Because, according to the basic principles of economics, the higher the demand the higher the price.
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Answer: Using the discounted dividend model to estimate the value of the company’s stock, I will choose to evaluate a company that is not expected to distribute any earnings to its stockholders for the next few years.
Answer:
D. $162
Explanation:
We know,
Using high-low method, variable cost per unit = (Highest maintenance expense - Lowest maintenance expense) / (Highest machine hours - Lowest machine hours)
Given,
Highest maintenance expense = $4,360
Lowest maintenance expense = $2,950
Highest machine hours = 2,500 hours
Lowest machine hours = 1,660 hours
Therefore,
Variable cost per unit = $(4360 - 2950)/(2500 - 1660)
Variable cost per unit = 1410/840 = 1.68
Total Fixed cost using lowest machine hours =
Total cost - (variable cost per unit x least machine hours)
= 2,950 - (1.68*1,660)
= $162
Answer: Statement C
Explanation: Selection system is the most important system in an organization as it is related to employing the most important asset, that is, human resource.
If a firm wants to become a high performance, the employees working in it must be efficient in their jobs and it is dependent on selection process.
If the recruiter keeps the process of recruitment completely job related and legal checks are done then it can lead to high performance.
Answer:
$551,074
Explanation:
Sales revenue
Worst case
Budget sales = 2300 units
Estimated sales price = $750
Sales unit = (100%-4%*2300)
2208 units
Sales price = (100%-6%*750)= 705
Sales revenue =2208*705 =$1,656,000
b) Operating cash flow at worst case sales revenue
Variable cost - $260 *(100%-5%)
=$247
Total variable cost = $247* 2208= $545,376
Fixed cost = $589000*(100%-5%)
$559550
Operating cash flow = (1656000-545376-559550) =551,074
