Parr Hardware Store had net credit sales of $6.5mil and cost of goods sold of $5mil for the year. The Accounts Receivable balanc
1 answer:
Answer:
Accounts Receivables Turnover Ratio = = 10 times.
Explanation:
Accounts Receivables Turnover ratio =
Here Net Credit Sales = $6.5 million
Accounts Receivables Opening Balance = $600,000
Accounts Receivables Closing Balance = $700,000
Average Accounts Receivable Balance =
Accounts Receivables Turnover Ratio = = 10 times.
This shows that accounts receivables are on an average 1/10th of credit sales.
Final Answer
Accounts Receivables Turnover Ratio = = 10 times.
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Answer:
The total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is <u>C(x) = 0.004x^2 + 90x + 8,500</u>.
Explanation:
Given,
C '(x) = 0.008x + 90 ................................... (1)
To obtain the the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month, we obtain the integral of equation (1) as follows:
C(x) = (0.008 / 2) x^2 + 90x + F
C(x) = 0.004x^2 + 90x + F .......................... (2)
Where F is the constant.
Since total cost is the addition of the total cost and total variable cost, the F in equation (2) represents the total fixed cost per month.
Since the fixed costs incurred by Carlota are $8500/month, this implies that F = 8,500.
Substituting F = 8,500 into equation (2), we have:
C(x) = 0.004x^2 + 90x + 8,500 <-------------- Total cost per month
Therefore, the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month is <u>C(x) = 0.004x^2 + 90x + 8,500</u>.