Answer:
i) Z = 20( 80 ) + 50(20 ) = $2600
ii) $3000
Explanation:
representing products A and B as x₁ and x₂
using the given data
Max ( z ) = 20x₁ + 50x₂ ( optimal product mix for optimal profit ) ---- ( 1 )
0.8 ( x₁ + x₂ ) ≥ 0
0.8x₁ + 0.8x₂ ≥ 0 ------------ ( 2 )
also x₁ ≤ 100 --- ( 3 ) considering the amount to be sold ( sales volume )
based on the availability of raw material
2x₁ + 4x₂ ≤ 240 ----- ( 4 )
resolve equations 2, 3, and 4 graphically
x₁ = 80 units , x₂ = 20 units
back to equation 1
Z = 20( 80 ) + 50(20 )
= 1600 + 1000 = $2600
ii) To increase the number of units of A produced
given that x₁ ≤ 100 and the actual optimal units produced = 80 units
2600 + 20(100-80)
= 2600 + 20(20) = 2600 + 400 = $3000
Answer:
Part a.
Accounts receivable turnover ratio is the shows how many times accounts receivable can be converted in to cash during the period. The formula for calculating the same is given below.
Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
The following table shows the accounts receivable turnover ratio of MCB and ABI:
Particulars MCB ABI
Net sales $5,170 $39,046
Average Accounts Receivable $517 $2,606
Accounts Receivable Turnover rate 10 14.98
Part b.
Day's sale outstanding shows the average number of days taken to collect the accounts receivable. The formula for calculating the same is given below.
Day's sale outstanding = Accounts receivable / Total credit sales × 365
The following table shows the days sale outstanding of MCB and ABI:
Particulars MCB ABI
Net sales $5,170 $39,046
Average Accounts Receivable $517 $2,606
Day's sale outstanding 36.5 24.36
Answer:
The correct answer is A. Reduces private-sector economic risk.
Explanation:
Economic risk refers to the uncertainty produced in the return on investment due to changes in the economic situation of the sector in which the company operates. Thus, by way of example, this risk may come from: the management policy of the company, the policy of distribution of products or services, the appearance of new competitors, the alteration in the tastes of consumers, and so on.
Economic risk is a direct consequence of investment decisions. So the structure of the company's assets is responsible for the level and variability of operating benefits.
Answer:
Fixed cost: Interest on company-issued bonds, Real estate taxes, Executive salaries, Insurance premiums, Wage payments, Depreciation and obsolescence charges, Sales taxes, Rental payments on leased office machinery
Variable cost: Fuel, Shipping charges, Payments for raw materials,
Explanation:
Fixed costs are costs that are not changed regardless of quantity of goods being produced such as rent for equipment, taxes, depreciation and so on.
Variable costs are costs that change with regard to the quantity of goods being produced such as cost of raw materials, cost of packaging and so on.
Example of fixed and variable costs are:
- Fixed cost: Interest on company-issued bonds, Real estate taxes, Executive salaries, Insurance premiums, Wage payments, Depreciation and obsolescence charges, Sales taxes, Rental payments on leased office machinery
- Variable cost: Fuel, Shipping charges, Payments for raw materials,
Answer:
transfer cost $25
Explanation:
The minimum transfer price is equal to the marginal price.
The marginal price, in this case, will be the variable cost, because there is no additional fixed cost related to the transfer:
This should be analyzed like a special order request, only the variable cos matter unless we incur in additional fixed cost.
Marginal Cost = Variable cost: 25
