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PtichkaEL [24]
3 years ago
15

If the real rental price of capital is $10,000 per unit and the real cost of capital is $9,000 per unit, to maximize profits a f

irm should: add to its capital stock. keep its capital stock unchanged. let its capital stock shrink. reduce the real rental price of capital.
Business
1 answer:
Phoenix [80]3 years ago
8 0

Answer:

Add to its capital stock.

Explanation:

Rental firms earn profit by buying goods and renting them out at a price higher.The advantage of owning capital is the real rental price of capital for the units of capital owned and rented.

In this case, the real rental price of capital is $10,000 per unit where as the real cost of capital is $9,000 per unit. This means the firm is getting a profit from the business of $1000 per units assuming interest on their loans, cost of loss/ gain  on the price of capital and depreciation costs are taken care.To maximize profit at this level, the firm can increase capital stock by buying more goods and renting them out at the current real rental price of capital.

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A customer has submitted a claim to have his cell phone replaced at no charge. However, the customer’s warranty expired 11 month
erica [24]

Answer:

(I)

b. Use the reasons-before-refusal plan.

(II)

a. Keep the refusal respectful, sensitive, and upbeat.

b. Disclose all reasons for the refusal.

d. Provide alternatives that encourage the customer to continue business with you.

Explanation:

  • In the first case, the best strategy to adopt is that of presenting the "reasons-before-refusal" plan. This means that before conveying a negative message to the client, you explain the reasons of why this message necessarily has to be like that. By reading the reasons first, the customer will be more likely to agree with your assessment of the situation.
  • In the second example, these are all strategies that you can use to ensure that the letter you are writing is kind and appropriate. In this letter, it is important to be respectful, sensitive and upbeat in order for the customer to know that you are taking his claim seriously. Moreover, you should be able to disclose all the reasons for the refusal so that the person is well-informed of the situation. Finally, you should be able to provide alternatives to the customer, as this might allow him to continue having business with you.
6 0
2 years ago
Prepare Job-Order Cost Sheets, Predetermined Overhead Rate, Ending Balance of WIP, Finished Goods, and COGS At the beginning of
vova2212 [387]

Answer and Explanation:

1. The computation of overhead rate based on direct labor cost is shown below:-

Overhead rate = Overhead applied × 100 ÷ Direct labor cost

= 888 × 100 ÷ 1,200

= 74%

2. The Preparation of job-order cost sheet for the four jobs is shown below:

Particulars                Job 86        Job 87        Job 88        Job 89

Beginning balance $6,888       $6,820

Direct materials       $3,000      $7,000         $2,100          $1,500

Direct labor              $800          $6,000        $900            $500

Applied overhead  

is 74% of direct labor $592           $4,440       $666            $370

Total                          $11,280       $24,260      $3,666      $2,370

3. The computation of ending balances of Work in Process and Finished Goods is shown below:-

Work in process of Job 88 = $3,666

Finished goods = Total of Job 86 + Total of Job 89

= $11,280 + $2,370

= $13,650

4. The computation of the Cost of Goods Sold for March is shown below:-

Cost of goods sold is

= Job 87

= $24,260

7 0
2 years ago
Operating data for Swifty Corporation are presented below. 2022 2021Sales revenue $830,700 $634,900 Cost of goods sold 529,000 4
Anastaziya [24]

Answer and Explanation:

The preparation of the vertical analysis is presented below:

Particulars       Amount           %      Amount    %

Sales                 $830,700 100      $634,900 100

Less:

Cost of goods sold $529,000 63.7    $415,000 65.4

Gross Profit          $301,700 36.3     $219,900 34.5

Less:

Selling Expenses $124,700 15.0       $73,600 11.6

administrative expenses $78,800 9.5   $53,900 8.5

Total Operating

expenses               $203,500 24.5 $127,500  20.9

Income before

income taxes         $98,200          11.8  $92,400  14.5

Less:

Income tax expenses $33,500 4.0    $23,400  3.7

Net Income               $64,700 7.8     $69,000 10.8

Working note

The percentage is like

= Items value ÷ sales × 100

Like for cost of goods sold

= $529,000 ÷ $830,700 × 100

= 63.68%

It is same applicable for other items also

7 0
3 years ago
Economic systems differ according to which two main characteristics?
nikitadnepr [17]

Answer:

A.

Explanation:

Economic systems refers to the different ways in which a government moves and distributes the resources that the country needs, including labor, capital, entrepreneurs, physical resources and information resources. That being said the two main characteristics that explains how they differ would be who owns the factors of production which are the 5 stated above, and the methods used to coordinate economic activity.

4 0
2 years ago
If you were running a company, describe at least two things you would do to improve its productivity
ddd [48]
If I was running a company, I would spend more time to work on training because the more your trained, the more you can make (Quality is also better if more trained). I would give days off because my workers won’t make as much if they are tired.
8 0
3 years ago
Read 2 more answers
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