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3 years ago

Complete the following sentence. When the long run average cost (LRAC) curve has a positive slope, it implies there are:

Business

1 answer:

Andreas93 [3]3 years ago

4 0

Answer:

It implies there are diseconomies of scale.

Explanation:

It implies there are diseconomies of scale in the industry

Because as the quantity of units output increase, the cost also increase. While in economies of scale, the slope for the LRAC will be negative, as each increase in output lowers the cost.

When this occurs, there is a lower change of monopoly in the industry, as the larger firm also faces the larger cost, so the supply tend to be more diverse.

While a, indifined negative slope will generate monopolies as their cost become lower at gerater the output.

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American Inc. had gross sales of $925,000. Cost of goods sold and selling expenses were $490,00 and $220, 000 respectively Ameri

drek231 [11]

Answer:

a. Particulars Amount

Gross sales $925,000

Less: COGS $490,000

EBITDA $435,000

Less: Depreciation $120,000

EBIT $315,000

Less: Interest on notes payable $8,800 (220000*4%)

EBT $306,200

Less: Tax (35%*306200) $107,170

Net Income $199,030

b. Operating cash flow = Net income + Depreciation

Operating cash flow = $199,030 + $120,000

Operating cash flow = $319,030

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3 years ago

You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cas

valkas [14]

Answer:

$2,830,000

Explanation:

Net working capital is calculating by subtracting current liabilities from current assets

current assets = cash and marketable securities + accounts receivable + inventories = $560,000 + $2,000,000 + $2,500,000 = $5,060,000
current liabilities = accrued wages and taxes + accounts payable + notes payable = $610,000 + $910,000 + $710,000 = $2,230,000

net working capital = $5,060,000 - $2,230,000 = $2,830,000

4 0

4 years ago

Saphire Company budgeted the following production in units for the second quarter of the year:April45,000May38,000June42,000Each

olga55 [171]

Answer:

Option (a) is correct

Option (b) is correct.

Explanation:

In April:

Total raw material needed for production:

= Production units × raw material required for one unit of FG pound

= 45,000 × 1

= 45,000 pounds

Closing raw material to be maintained = 30% of 38,000

= 11,400

In May:

Total raw material needed for production:

= Production units × raw material required for one unit of FG pound

= 38,000 × 1

= 38,000 pounds

Raw material to be purchased:

= Total raw material needed for production + Closing raw material to be maintained - Opening raw material

= 38,000 + (42,000 × 30%) - 11,400

= 38,000 + 12,600 - 11,400

= 39,200 pounds

In June:

The Desired beginning inventory for June is equal to the closing inventory of May, i.e, 12,600 pounds.

6 0

3 years ago

Alejandro is one of the leading widget producers in the country. At his current level of production, his total costs amount to $

My name is Ann [436]

Answer:

<h2>Based on the information given in the question,Alejandro's company is producing 20 widgets total.Hence,the answer is option c. or 20.</h2>

Explanation:

In Microeconomics,the average total cost of production is calculated by dividing the total cost of production by the number or quantity of output produced by any firm or company.In other words,Total cost of production divided by the average cost of production is the total number or quantity of output produced by any firm or company.
Here,the average total cost of production is given as $250 and the total cost of production is $5000.
Therefore,based on the formula to estimate average total cost of production,total number of widgets produced by Alejandro's firm= $\frac{5000}{250}=20 widgets$ .Thus,the total number of widgets produced by Alejandro's company is 20.

8 0

4 years ago

Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

defon

Answer and Explanation:

No. Account titles and explanation Debit Credit

(a) Cash $2,304

Service Charge Expense($2,400 * 4%) $96

Sales Revenue $2,400

No. Account titles and explanation Debit Credit

(b) Cash $57,024

Service Charge Expense($59,400 * 4%) $2,376

Accounts Receivable $59,400

4 0

3 years ago