Answer:
c) produce in the short run but shut down in the long run.
Explanation:
Option C is correct because the price charged is above the average variable cost which means the firm is still covering its variable cost of production. Moreover, if the firm still continues the same in the long run then it will shut down its operation. But if the price charged is below or equal to average variable cost then the firm will shut down its production even in the short run.
Answer:
Increase in the Federal fund rate
Explanation:
The Federal fund rate may be defined as the interest rate that the bank charges on another bank for an overnight loans. In other words it is the interest charged on the excess reserve that other borrows or lends overnight.
The Federal bank takes help of the Federal fund rates to keep a control on the inflation which encourages healthy economic growth.
In the context, when the economy of a country is experiencing sharp increase in inflation rate, I would recommend to increase the Federal fund rate so as to control the inflation rate being increased.
Both inflation rate and Federal fund rate are related closely to the relative availability of the reserves or the relative scarcity of he reserves in the Federal.
Answer:
See explanation section
Explanation:
Req. A & B
If there is an increase in the net income over the year, the company is in profitability condition. As Omega industries are getting increased net income, it suggests their profitability.
EVM or enterprise value multiplier allows a company to compare the capital structure that the company uses. It is commonly used for valuing a business.
Req. C, D & E
In a financial plan, if the sales increase, it should be because of increasing working capital and fixed assets. We know, additional assets can generate more revenues.
A firm can collect approximately 8% of its annual sales at any given time. It can be found through the following way-
since the days' sales in receivables for 30 days in a year, the percentage of annual sales = (30 ÷ 365) × 100 = 8.22% or 8%
Answer:
$34,050
Explanation:
The total job cost consist of the direct and indirect cost (also known as overheads). The direct cost includes the cost of direct materials, direct labour, direct machine hours etc.
While the manufacturing overheads consist of indirect labour cost, depreciation, etc.
Total Direct costs = $10,000 + $13,000
= $23,000
If the allocate manufacturing overhead at 85% of direct labor cost
Manufacturing overheads = 85% × $13,000
= $11,050
The total cost of Job No. 110
= $23,000 + $11,050
= $34,050