Answer:
Thus to maximize profit, Santora Company should manufacture Bread machine only.
The unit of Bread machine can be produced in 2,000 machine hours is 8,000 units
Explanation:
The profit for Toaster Ovens and Bread Machines is $10 and $90 respectively; thus
six toaster ovens per machine hour will generate profit of $60 = ($10 *6)
four bread machines per machine hour will generate profit of $360 = ($90 *4)
In the same machine hour the profit from Bread machines are significantly higher then Toaster over. Thus to maximize profit, Santora Company should manufacture Bread machine only.
The unit of Bread machine can be produced in 2,000 machine hours is 8,000 units (= 2,000 * 4)
The profit for 8,000 units of Bread machine is $720,000 = (8,000 * $90)
Answer:
$1,667
Explanation:
Given that,
Savings account at the beginning of the year = $2,000
Price level at the beginning of the year = 100
Price level at the end of the year = 120
Price level increases from 100 to 120
Therefore, what was worth $120 earlier, is not worth only $100.
Hence, $120 at the beginning of the year is worth = $100 at the end of the year
$1 at the beginning of the year is worth = ($100 ÷ $120) at the end of the year
Savings of $2,000 at the beginning of the year is worth:
= ($100 ÷ $120) × $2,000
= 0.833 × $2,000
= $1,667
Therefore, the real value of the savings is $1,667.
Answer:
German companies do not recognize the profit <u>until the project is completely finished and they have been paid.</u>
Explanation:
German companies prepare their accounting balances under IFRS standards (common for all EU member countries) and German GAAP.
Under IFRS standards, revenue must be recognized when the business satisfies a performance obligation.
German GAAP is very prudent in determining profits, that is why they are only recognized once a project is completely finished and it has been completely paid.
Some specific German rules are to starting to change due to globalization, but others are still subject to legal requirements.