A turnover of 7 times represents the company issued and collected trade credit, at the level of its accounts receivable balance, 7 times during the year.
The number of times per year that a company collects its average accounts receivable is referred to as accounts receivable turnover.Accounts receivable turnover is a measure used by accountants and analysts to assess how effectively businesses collect on credit given to customers.
The higher your receivable turnover ratio, the better, because it indicates that your customers pay their invoices on time and that your company collects debts efficiently. A higher turnover ratio also indicates improved cash flow and a more solid balance sheet or income statement.
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Answer:
6,250 units to break even.
Explanation:
Let's call x the number of units needed.
We know the sales price ($200/unit).
We know the cost of production ($120/unit)
And to break even, the Abner Corporation need to cover their fixed costs of $500,000.
That can be modeled like this:
200x - 120x = 500000 (sales price - cost price to get 500K)
we simplify and solve:
80x = 500000 (making $80 profit for each unit)
x = 6,250 units
Abner Corp needs to sell at 6,250 units to break even.
Since it is selling 7,500 units, they are making a profid.
Answer:True
Explanation:
A large portion of product cost relates to direct materials and the number if setups is directly proportional to the length if time require to carry out production. When producing I Small lots,production will take place in small scale and transported in small scale so bearing goods to a consumer with large will involve repeated production and multiple shipping to meet up .
Answer:
Option (d) is correct.
Explanation:
Given that,
Capital stock = 900 units
Saves 20% of its output
Depreciation rate = 10%
Production function, Y = 
= (900)^{\frac{1}{2}}
= 30 units
Therefore, the savings is as follows,
= 20% of output
= 0.2 × 30 units
= 6 units
Hence, the savings is equal to the investment for this small economy or country.
Investment = 6 units
Brungaria's exports have fallen significantly in the current year
Explanation:
The Prime Minister's Economic Advisory Council (PMEAC) provides economic advice , particularly the Prime Minister.
The Committee is an autonomous, non-constitutional, non-permanent body which is responsible for determining the main economic problems which It is faced with from a neutral perspective. This gives recommendations to the Premier on economic matters such as growth, micro-finance and factory production.
The main role of PMEAC is to provide the Prime Minister with a neutral view on economic policy issues. It also draws up a monthly industrial development report to emphasize the PM.
