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MrMuchimi
3 years ago
9

Red Hot Inc. and Maverick Cycles Inc. are two competing motorcycle companies. While Red Hot's Cost of goods sold/Revenue is 63.4

percent, the Cost of goods sold/Revenue of Maverick Cycles is 54.2 percent. What do you infer from this financial data?
a- Red Hot is less efficient than Maverick Cycles in producing goods.
b- Red Hot has a higher profit margin than Maverick Cycles.
c- Red Hot and Maverick Cycles have achieved a competitive parity.
d- Red Hot is able to command a greater price premium for its products than Maverick Cycles
Business
1 answer:
kykrilka [37]3 years ago
6 0

Answer:

a- Red Hot is less efficient than Maverick Cycles in producing goods.

Explanation:

Given data

The Red Hot's Cost of goods sold/Revenue = 63.4%

And, the Cost of goods sold/Revenue of Maverick Cycles = 54.2%

By considering the above information, we can see that in the red hot case, the percentage is higher whereas in the maverick cycles the percentage is lower than reflecting the less efficient in the red hot case as the cost value that is incurred for producing the goods and services is higher than the sales revenue while in another case, the cost is lower as compared to the red hot

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it is NOT 30 days

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A firm incurs $35,000,000 of actual OH costs. It has a PDOH rate of $450 per machine hour and 100,000 machine hours were actuall
ella [17]

Answer:

c.  Debit: Overhead Control $10,000,000  

Credit: Cost of Goods Sold $10,000,000

Explanation:

The journal entry to close the overhead account is presented below:

Overhead Control A/c Dr $10,000,000

       To Cost of Goods Sold A/c  $10,000,000

(Being the overhead account is closed)

The computation is shown below:

= Applied overhead - actual overhead

where,

Applied overhead equal to

= $450 × 100,000 machine hours

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And, the actual overhead is $35,000,000

So, the amount would be

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5 0
3 years ago
On July 14 joseph invested $12000 in a fund that was growing at 5% compound semi annually
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Answer:

$12,300

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I will assume that Joseph invested in the fund on July 14, 2013.

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since the fund is going to earn interests again on July 14, 2014, the value on march 14 is the same = $12,300

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3 years ago
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Answer:

B. Annuity due

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Annuity Due

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It is a series of payments that is made or received over a predetermined period of time.

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