Answer:
The correct answer is the option D: Time value of money.
Explanation:
To begin with, due to the fact that Rock Solid Concrete Company does not offer customers a cash discount for early payment then it is quite obvious that their customers will try to wait to pay their bills on the last day because in that way they will be able of having that money availabe for any issues or inconveniences that could occur during those first days, therefore that those customers apparently <u>understand the importance of time value of the money because if the pay early they will lose that cash and would not have it for any urgencies</u>.
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Answer:
Explanation:
X001 Sales volum = 3000*$20 = $60,000
X002 Sales volum = 3000*$10 = $30,000
Total $90,000
Allocated to X002 based on sales volum is 33.33% (30,000/90,000) of the 60,000, which is $20,000
Cost per unit of X002 is $6.67 ($20,000/3,000). Sells 1000 units, $6.67*1000 = $6670.
Gross profit = Revenue $10,000 - Cost $6670 = $3330 in gross profit
Answer:
Answer B.
Explanation:
EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.
Answer:
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