Sorry I don’t know but thank for the point
When a firm prepares financial reports by using absorption costing, <span>profits may decrease with increased sales even if there is no change in selling prices and costs. When you absorb costs that means all of the manufacturing costs are absurd by the units produced. The final cost of the inventory will include direct matters, labor and both variable and fixed overhead to product the units. </span>
Credit utilization is the amount of credit owed compared to the total credit limit. Since there are two cards, we have to add the credit balances of both cards, then divide that by the total credit limit of both cards.
TOTAL CREDIT BALANCES:
=$410 + $510
=$920 total credit balance
TOTAL CREDIT LIMIT:
=$1000 + $1000
=$2000 total credit limit
CREDIT UTILIZATION:
=total balance ÷ total limit
=$920 ÷ $2000
=0.46 credit utilization
PERCENT:
to find percent multiply decimal by 100 (or move decimal two places to the right)
=0.46 x 100
=46% credit utilization
ANSWER: The overall credit utilization is 46% (which is quite high- the higher the utilization, the higher the credit risk to credit lenders).
Hope this helps! :)
