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scZoUnD [109]
3 years ago
9

Two products, QI and VH, emerge from a joint process. Product QI has been allocated $28,300 of the total joint costs of $49,000.

A total of 2,300 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $12 per unit, or it can be processed further for an additional total cost of $10,300 and then sold for $14 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?
Business
1 answer:
Mrac [35]3 years ago
8 0

Answer:

Gain from selling at the split-off point = $12 * 2,300

Gain from selling at the split-off point = $27,600

Gain from Processing further = $14 * 2,300 - Processing cost ($10,300)

Gain from Processing further = $ 32,200 - $10,300

Gain from Processing further = $21,900

<u>Overall profit</u>

= $27,600 - $21,900

= $5,700 (Decrease in overall profit )

Hence, if product QI is processed further and sold, then overall profit will be decreased by $5,700

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Mandarinka [93]

Answer:

b. Debt ratio

Explanation:

The liquidity ratio includes the current ratio, quick ratio, etc

where,  

Current ratio = Total Current assets ÷ total current liabilities

And, Quick ratio = Quick assets ÷ total current liabilities  

where,  

Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)  

These two ratios check the liquidity of the business organization whereas debt ratio shows a relationship between the total liabilities and the total assets. It checks the leverage of the firm whether it is capable to repay the borrowed amount or not

Hence, option b is correct

4 0
3 years ago
AB When considering two mutually exclusive projects, the firm should always select the project whose internal rate of return is
Mnenie [13.5K]

Answer:

False

Explanation:

If an investment project can be repeated, i.e. its life cycle can be extended by reinvesting, the NPV of the project will change.

When considering two mutually exclusive projects, the NPV method should always be considered before the IRR as a means of evaluating which project should be carried out.

3 0
3 years ago
Read 2 more answers
The following information is provided by Adametz​ Company: WIP​ Inventory, January 1 0 units Units started 7 comma 600 Units com
nikklg [1K]

Answer:

The equivalent units for conversion​ costs= 6,912 units

Explanation:

<em>The weighted average method of valuation would be used to determine the the equivalent units for conversion​ costs</em>

<em>Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked. </em>

Equivalent unit = Degree of completion × Units of inventory

<em>Items                                       units                                    Equivalent unit</em>

Completed   unit                     3,300       3,300× 100 =       3.300

Closing work in progress       4,300        4,300×  84%=      <u>3,612 </u>

Total equivalent units                                                           <u>6,912 </u>

The equivalent units for conversion​ costs= 6,912 units

7 0
3 years ago
A furniture factory's employees work overtime to finish an order that is sold on January 31. The office sends a statement to the
Lana71 [14]

Answer:

January

Explanation:

The overtime wages should be expensed in January as in the month of february, wages will be accrued and it will be liablity for employer.

The overtime worked in month on january should be paid in january itself and overtime expense should be included in wages payable in the month of January. When wages are paid, the owner of the factory should debit the wages payable account and cash account should be credited as amount of casg paid to the employees. Wages are considered as operating expenses of factory.

4 0
3 years ago
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Inessa05 [86]

Answer:

one-to-one Unary

Explanation:

It is one-to-one binary  relationship because one student is grouped with one student only. Unary because they have the same relationship in the university  and share the same class and learning procedures.

In binary relationships there are various entities for example in this situation if the university or colleges were different then it would have been binary .

In the given question only one student is teamed up with one student therefore it is one to one not one to many.

7 0
3 years ago
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