In a highly automated manufacturing company, labor costs vary considerably with volume of production.

A company uses the retail method to estimate inventories. The following information is for the first six months of the current y

Tanya [424]

Answer:

The correct answer is $240,000.

Explanation:

According to the scenario, given data are as follows:

Beginning inventory at cost = $70,000

Beginning inventory at retail = $100,000

Net purchases at cost = $270,000

Net purchases at retail = $360,000

Total sales = $320,000

According to the LIFO method.

Particulars Cost Retail Cost/Retail Ratio

Beginning inventory $70,000 $100,000 70%

Net purchases $270,000 $360,000 75%

Total Inventory $340,000 $460,000

Total sales $320,000

Ending inventory ( Estimated )

($360,000-$320,000)× 75% $30,000

$70,000 × 70% $70,000

Ending inventory at cost $100,000

Estimated cost of goods sold $240,000.

Hence the correct answer is $240,000.

7 0

3 years ago

Which type of data do researchers collect the personal interviews?

STALIN [3.7K]

Answer:

The correct answer is "Face-to-face interviews".

Explanation:

Face-to-face surveys or interviews are an important way of gathering information used throughout survey methodology.
Throughout these interviews, research teams are collecting location information from participants across one cooperation or bonding. This method of collecting information seems to be unique or even just highly personalized.

7 0

3 years ago

Capital One produces a single product, which it sells for $8.00 per unit. Variable costs per unit equal $3.20. The company expec

serious [3.7K]

Answer:

Capital One's current break-even point in terms of number of units for the month is 1500 units

Explanation:

Break-even point in terms of number of units is the sales units required such that the company makes neither gain nor loss

break-even point in sales units=fixed costs/contribution margin per unit

fixed costs is $7,200

contribution margin=sales price per unit-variable cost per unit

sales price per unit is $8

variable cost per unit is $3.20

contribution margin=$8-$3.20=$4.80

break-even point=$7,200/$4.80=1,500 units

The correct option is A ,1500 units

4 0

4 years ago

In what way can the use of ROI as a performance measure for investment centers lead to bad decisions? How does the residual inco

GREYUIT [131]

Answer:

The correct answer is:

If ROI is used to measure performance, an investment center manager can reject a profitable investment opportunity whose rate of return is higher than the company's required rate of return but is less than the current ROI of the company, business.

The residual income approach overcomes this because any situation like this, will result in residual income.

Explanation:

ROI (Return On Investment) is the economic value generated as a result of the performance of different marketing activities. With this data, we can measure the return we have obtained from an investment.

One of the most important things to keep in mind when we carry out an Inbound Marketing strategy is to check your results and measure your profitability.

ROI is very useful to evaluate this profitability. It becomes the relationship between marketing investment and the benefits generated, whether direct sales or obtaining potential customers.

Calculating the ROI is essential to make the decision of future investments. We will have the information we need to evaluate which projects are more profitable. In addition, they mark the path we have to follow in the future.

Investment risk decision making requires knowing the probability distribution of the cash flows of each project. However, this is not enough when it comes to choosing between different alternative projects. Thus, the final decision may be different for each individual investor depending on the profitability-risk combination that is considered most appropriate. This implies the need to complete the above information by considering the investor's attitude towards risk.

8 0

3 years ago

Evidence of sharing profits is prima facie evidence of partnership existence unless the profits are: a. wages or rent. b. not sh

levacccp [35]

Answer: A. Wages or rent

Explanation: A business partnership is an association of two or more people to conduct a business. The partners pool their funds and also partake in profits or losses that might result in running the business. The contract of a partnership that states that one exist could be express or implied, written or oral.

Generally, the receipt of profits from a business is evidence of a partnership. However, when it is repayment of a debt, wages, rent, or an annuity that is received as a share of profit, such transactions do not lead to a legal inference that a partnership exists since they are considered “protected relationships”. Therefore, evidence of sharing profits is prima facie evidence of partnership existence unless the profits are wages or rent.

5 0

3 years ago