Answer:
see below
Explanation:
A firm may either opt to shutdown or declare bankruptcy if its making losses. A shutdown will involve ceasing operations and disposing of assets to pay creditors. Declaring bankruptcy shields the business from debt obligations or seizing of assets by its creditors.
Many businesses opt to declare bankruptcy because shutting down is costly. Except for properties, other assets are likely to be liquidated at costs below their book value. With the burden of debts shelved for some time, a business has a chance of bouncing back to profitability. A loss-making firm whose price is above the average variable cost should continue operating.
The main thing Vinnie did wrong was have multiple credit cards, and it say sin the question 'had fun with them' he probably did not monitor how much money he was spending.
Answer:
b. 65,000 units
Explanation:
The number of units of products y must sell to yield an annual profit of $90,000 is computed as;
Break even point in sales units = (Fixed cost + Targeted profit) / Contribution margin
Given that ;
Fixed cost = $300,000
Targeted profit = $90,000
Contribution margin = $15 - $9 = $6
Therefore,
Break even point in sales units = ($300,000 + $90,000) / $6
= 65,000 units
The number of units of products y must sell to yield an annual profit of $90,000 is 65,000 units.
Answer:
$20 million is expected to have cash balance at the end of the year.
$39 million is the maximum possible investment funds that company is expected to invest.
Yes it is true net cash flow is likely to decrease in the next quarter if the company allows customer to pay in 90 days instead of 60 days.
Answer and Explanation:
The computation is shown below:
a. The standard cost is
Fo material
= $1,243,000 ÷ 565,000 units
= $2.20 per unit
And, for labor it is
= $1,638,500 ÷ 565,000 units
= $2.90 per unit
b. The budgeted cost would be remian the same as the total cost i.e. $1,243,000 and $1,638,500
Hence, the same would be considered and relevant
