Answer:
c. cease production immediately, because it is incurring a loss.
Explanation:
When a business engages in production it looks to make profit. That is for the production price to be higher than cost incurred in producing the good.
However when the price is lower than the average variable cost as is indicated in the scenario then the firm needs to shut down production in the short term.
Factors that will adversely affect a firm in the short term are price, average total cost, and average variable cost.
Once price is less than average total cost or average variable cost it is better to stop production.
As they are incurring an economic loss
Answer:
<em>Labour rate variance = $260 favourable</em>
Explanation:
<em>The rate variance would be the difference between the standard labour cost of the 2,300 units sold and the actual labour cost</em>
Standard labour cost (3600/1200× 2300)<em> 6,900</em>
<em>Actual labour cost </em><u><em>6, 640</em></u>
<em>labour rate variance </em><u><em> $260</em></u><em> favourable</em>
The variance is favourable because the StuckinMyHouse book company saved $260 as a result of of his actual cost been less than the expected cost.
Answer:
$2.25
Explanation:
Please check the attached image for the full question used in answering this question
Breakeven sales is the quantity sold at which net income is equal to zero.
Breakeven sales = fixed cost / (price per unit - variable cost per unit )
$1,215,000 / ($80 - $35) = 27,000
If Highway 55 Studios can reduce fixed expenses by $60,750, variable cost =
27,000 = ($1,215,000 - $60,750) / ($80 - V)
27,000 = 1,154,250 / ($80 - V)
V = $37.25
Variable cost would increase by : $37.25 - $35 = 2.25
Answer:
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
So, the items reported or not reported is shown below:
1. $75,000 cost of office equipment - not reported
2. $58,000 accumulated depreciation - not reported
3. $20,200 sales price - investing activities - added
4. $3,200 gain on sale of equipment - operating activities - deducted
Answer:
c. high creativity
Explanation:
Narcissistic personality disorder is characterized by the behavior of an individual who has a great need to feel admired, this individual has a mental disorder that leads him to have an exacerbated perception of himself and his characteristics, having a vanity and a sense of very strong self-importance.
The characteristic that narcissists probably have and is associated with the emergence of the leader, but not effectiveness, may be high creativity, as such individuals can be creative in the sense of self-valuing themselves and their personal achievements, leading to even making up stories to feel valued, while the creativity present in a leader is focused on a vision of the business and management of a company and people, so it is correct to say that a leader's creativity aims to make business more efficient and improve working conditions of its employees.
