<u>Solution and Explanation:</u>
<u>As per the given data:</u>
Quarter 1 = 90000, Quarter 2 = 90000, Quarter 3 = 60000, Quarter 4 = 140000
a. Quarterly production rate is calculated as follows:
Q = ( 90000 + 90000 + 60000 + 140000 ) divide by 4
after calcualting the above equation, we get, = 95000 gallons per quarter tin order to meet the demand.
b. Anticipation inventory:
1 st quarter = 95000 minus 90000 = 5000 gallons
2 nd quarter = 95000 minus 90000 = 5000 + 5000 in prior quarter = 10000 gallons
3 rd quarter = 95000 minus 60000 = 35000 + 10000 in prior quarters = 45000 gallons
4th quarter = 140000 minus 450000 minus 95000 = 0 gallons.
Answer: decrease
Explanation:
The money multiplier is the amount of money generated by banks with each dollar of reserves. The reserves is the amount of deposits which the Federal Reserve wants banks not to lend but rather hold. The money multiplier is therefore the ratio of deposits to the reserves in the banking system.
The money multiplier shows the ratio of the increase or decrease in money supply in relation to the increase or decrease in deposits. During the Christmas period, people draw lots of money out of their accounts to buy presents and other things. This will lead to a decrease in the money multiplier.
Answer:
11,125 units
Explanation:
Particulars Units
Beginning WIP (2500*0.75) 25% is completed 1,875
Units started and completed during the month 8500
[10,000 -1500 as ending Inventory]
Ending Inventory [1500*0.50] <u>750</u>
Equivalent units <u>11,125</u>
So, the equivalent units for conversion costs during October is 11,125 units
Answer:
a. Division's margin = Net operating income / Total sales
Division's margin = $4,069,146 / $32,948,550
Division's margin = 0.1235000
Division's margin = 12.35%
b. Division's turnover = Total sales / Average operating assets
Division's turnover = $32,948,550 / $9,027,000
Division's turnover = 3.65 times
c. Division's return on investment = Division margin * Division turnover
Division's return on investment = 12.35% * 3.65 times
Division's return on investment = 45.08%
