Answer: $6.00
Explanation:
From the question, we can see that the productivity in the United States is (45/9) = 5 times higher than that of Mexico.
Therefore, the wages in Mexico should be 5 times lower than the wages paid to the workers in the United States. This will be:
= $30.00 / 5
= $6.00
Therefore, in order for the firm to reduce its wage cost per unit of output by moving to Mexico, the wages in Mexico must be below $6.00 per hour.
Answer:
The expenses of the finance lease and operating lease are equal
Explanation:
A lease is an agreement wherein the the lessor allows the lessee to use an asset for a fixed period in return for periodical lease rentals.
Leases are of two types, operating and finance. In the latter, the lessee has the option to buy the asset on lease, at the end of the lease term at a very reduced value. In case of operating lease, the lessor remains the owner upon the termination of lease.
Expenses refer to lease rental payments made by the lessee to the lessor. Considering, the lessor wants a desired rate of return from leasing activity, the lease rentals under both would be structured to give him the same desired return.
This means, the expenses of both finance and operating lease would be equal.
Answer:
Small/large
Explanation:
A transaction could be a small or large unit of work that must either be totally finished or stopped
Answer and Explanation:
The journal entry for the recording of sales and sales tax payable is shown below:
Accounts Receivable $3,472
To Sales $3,200
To Sales tax payable $192 ($3,200 × 6%)
To Local tax payable $80 ($3,200 × 2.5%)
(Being the sales and sales tax payable is recorded)
For recording this we debited the account receivable as it increased the asset and credited the sales, sales tax and local tax as it increased the revenue and liabilities
Answer:
The answer is option A) Diversification merits strong consideration whenever a single-business Is faced with diminishing market opportunities and stagnating sales in its principal business company
Explanation:
Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories. It aims to maximize returns by investing in different areas that would each react differently to the same event.
It's important to diversify among different asset classes. Different assets such as bonds and stocks will not react in the same way to adverse events. A combination of asset classes will reduce your portfolio's sensitivity to market swings. Generally, bond and equity markets move in opposite directions, so if your portfolio is diversified across both areas, unpleasant movements in one will be offset by positive results in another.
