Getting loans, buying things that you have to pay off.. Etc..
Explanation:
The computation of the ending inventory using the each method is shown below:
a. FIFO
Since the 57 units is in physical inventory so 40 units should be taken at $357 i.e from latest purchase and the remaining 17 units is at $342
= 40 units × $357 + 17 units × $342
= $20,094
b. LIFO
Since the 57 units is in physical inventory so 20 units should be taken at $360 and the rest 37 units at $342
= 20 units × $360 + 37 units × $342
= $19,854
c. Weighted average cost method
= Weighted average cost per unit × ending inventory units
where,
Weighted average cost per unit is
= $110,400 ÷ 320 units
= $345
And, the ending inventory units is 57 units
So, the ending inventory is
= 57 units $345
= $19,665
Answer:
If you only pay the minimum each month, your debt might become spread out over a longer period of time and interest charges may increase over time. This is not an effective strategy, and depending on the provider, you may end up paying more that what you needed to pay off.
Explanation:
Hope this helped!
Answer:
The contribution margin ratio will increase.
Explanation:
Giving the following information:
BrewCo sells coffeemakers for $120 each. The firm currently has variable costs per unit of $65. BrewCo can reduce its variable cost per unit to $58.
Contribution margin ratio= (selling price - unitary variable cost)/selling price
New Contribution margin ratio= (120 - 58)/120= 0.52
Old Contribution margin ratio= (120 - 65)/120= 0.46
Answer:
We generally calculate total average cost by dividing total cost / total output units.
In this case, we are not given the output units, but instead we are given the output value, so we should find a percentage from total revenue.
total costs = $4,800,000
total revenue = $20,000,000 + $5,000,000 = $25,000,000
average total cost = ($4,800,000 / $25,000,000) x 100 = 19.2%
This means that for every $100 of revenue, the merged company will spend $19.20.
