The correcto answer for this question is the letter c
Answer:
None of the fixed costs are avoidable. Therefore the company now loses all the fixed costs and the positive contribution margin.
Explanation:
Giving the following information:
Wood Aluminum Hard Rubber
Total Sales $65000
Variable expenses (58000)
Contribution margin 7000
Fixed expenses (22000)
Net income (loss) (15000)
Effect on income= -22,000 - 7,000= -29,000
None of the fixed costs are avoidable. Therefore the company now loses all the fixed costs and the positive contribution margin.
Answer: b. Its quick ratio decreases.
Explanation:
The Quick ratio is calculated net of inventory to determine if a company can cover its current liabilities with its more liquid current assets. The formula is to subtract Inventory from the Current Assets and then divided that by the Currency liabilities.
The Quick ratio will be less than before because the number of current assets will not change but the amount of current liabilities will change as the goods were purchased on credit. With a larger denominator, the resultant ratio will be less than before.
A property is a belong of any person. The items would most likely be enforced by the forced sale of a property is judgment.
<h3>How are judgments been enforced?
</h3>
In terms of wages, a judgment creditor uses authorization from the court in a document. Due to this authorization, the judgment creditor directs the police to seize a portion of your wages. The police, in turn, notifies the person involved.
This is the same when it comes to property. A judgement by a court often stands in the sales of any property.
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