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3 years ago

For a profitable firm, an increase in which one of the following will increase the operating cash flow?

1 answer:

3 0

Employee salaries

The employee salaries is something that comes under the Operating Activities of a business, in its Cash Flow Statement. Therefore an Operating Cash Flow would be Employee Salaries in this case.

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uppose McKnight Corp.'s breakeven point is revenues of $ 1 comma 100 comma 000. Fixed costs are $ 660 comma 000. Requirements 1

ioda

Answer:

1. Compute the contribution margin percentage.

2. Compute the selling price if variable costs are $16 per unit.

$26.67

3. Suppose 65 comma 000 units are sold. Compute the margin of safety in units and dollars.

margin of safety in $ = $633,550
margin of safety in % = 36.55%

4. What does this tell you about the risk of McKnight making a loss? What are the most likely reasons for this risk to increase?

Since the contribution margin is relatively high, this means that the production costs are relatively low (compared to selling price). The associated risks may come from high leverage, e.g. machinery purchased on credit that results in high interest expense. For the most part, having a high contribution margin is generally very good, just ask Apple.

Explanation:

break even point is $ = $1,100,000 (= break even point units x selling price)

fixed costs = $660,000

contribution margin % = (total sales - total variable costs) / total sales

total variable costs = $1,100,000 - $660,000 = $440,000

contribution margin % = ($1,100,000 - $660,000) / $1,100,000 = 40%

variable costs = $16 per unit

0.4 = (x - $16) / x

0.4x = x - $16

$16 = 0.6x

x = $26.67

65,000 x $26.67 = $1,733,550

margin of safety in $ = $1,733,550 - $1,100,000 = $633,550

margin of safety in % = $633,550 / $1,733,550 = 36.55%

4 0

3 years ago

Michael corporation manufactures railroad cars, which is its only product. the standards for the railroad cars are as follows:

adoni [48]

Answer:

$56,000 Adverse

Explanation:

direct materials quantity variance = Aq × Sp - Sq ×Sp

= (6,500×$16) - ((1,500×2)×$16)

= $104,000 - $48,000

= $56,000 Adverse

More materials were used during the month than was expected thus adverse.

3 0

3 years ago

7. Why might some construction workers be paid more than some teachers?<br>

DENIUS [597]

Answer:

hazard pay

Explanation:

in the working field if your job is considered dangerous you get hazard pay for "potentially risking your life" while as ateacher there is not a similar threat.

hope this helped!!

4 0

2 years ago

The eau claire mad cows is a professional hockey team. the regular ticket price for games is $10. however, anyone with a driver'

sergey [27]

<span>This type of price discrimination is group pricing. The people who live in la crosse are all members of the same group, a town. In addition, everyone that is part of the group is getting the same rate. That is why it is group pricing.</span>

8 0

3 years ago

What tools can you use consistently use to resolve value conflicts?

7nadin3 [17]

Answer:

Value conflicts can be defined as the issues which arose when the standard or predicted results are not achieved.

Explanation:

In an organization, a values conflict might arise if decisions are made or actions taken that result in compromising a stated value. Tools to resolve value conflicts.

Ignorance: Ignorance can be useful sometimes. If a mistake is too small which can be ignored or which has not that much affect on the concern topic then it is necessary to ignore.

Mediate it: Sometimes, the small or unnecessary things turn into a big issue which can be dangerous if not mediate properly. Thus correct and timely mediation is a required factor to resolve value conflict.

8 0

2 years ago