Answer:
c. The firm will make an additional $4200 in income per day if it sells taco shells instead of tortillas.
Explanation:
Tortilla daily revenue: $8000
Tortilla daily cost: $22500
Taco shell daily revenue: $26,700
Taco shell daily cost: $8000 + $4200 = 12200
Additional income if Taco Shells sold instead of Tortillas: $26,700 - 22,500 = $4200
Answer:
<u>e. owners of sole proprietorships can lose all their personal assets if the business is sued or fails.</u>
Explanation:
<em>Remember</em>, in a sole proprietorship form of business ownership, the owner's personal assets are not usually separated from the business since the business isn't viewed as a separate legal entity.
Hence, in a case where the business incurs liability or sued/fails, <u>the owner's personal assets can be targeted in the lawsuit and may lead to loss of </u><u>all their personal assets.</u>
The reason why the manager wants the person with 6 months of experience is the fact that a person with 30 years of experience is overqualified for an entry level position.
<h3>What is an entry level position?</h3>
An entry level position is a job that is designated for the people that have just left school.
The kind of people that are fitted for such positions are those that have just graduated from the university.
The person with 30 years of experience does not fit into this category.
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To meet the target the projected output level for next year required is 712,750.
What is sales budget ?
A sales budget is a financial strategy that projects the entire income of a business over a given time frame. To forecast the performance of the company, it relies on two factors: the volume of products sold and the price at which they are sold.
The calculation of the production level required to accomplish the goals for the following year is presented below:
Ending Inventory (662,000 ÷ 12 × 1.5) 82,750
Sales Budget 662,000
Total inventory required 744,750
Less Beginning Inventory -32,000
Production 712,750
Question:
Waterloo, Ltd. manufactures a component used in aircraft navigation systems. Demand has been strong and the executive staff at Waterloo is planning for next year. Yesterday, you were called into a budgeting meeting where production plans are being reviewed. You learn that the inventory policy at Waterloo is to hold one and one-half months’ worth of sales (to avoid issues with transportation disruptions). The sales budget for next year is 662,000 units, spread evenly over the year. Because of an unexpected increase in demand, inventory at the end of this year is expected to be only 32,000 units. The capacity of the plant is 702,000 units annually.1. What production level next year will be required to meet the targets? (Do not round intermediate calculations.)
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