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3 years ago

Economies of scale:

Business

1 answer:

gregori [183]3 years ago

5 0

Answer:

are achieved when a firm reduces its average cost of production as it produces more.

Explanation:

Economies of scale is reduction in the average cost as production increases due to the large size of the firm which makes it more efficient.

It is large firms that enjoy economies of scale.

Economies of scale can be achieved by buying supplies in large quantities. When firms buy in large quantities, they enjoy discounts which reduces their average cost. This is a form of internal economies of scale.

I hope my answer helps you.

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Mobray Corp. is experiencing rapid growth. Dividends are expected to grow at 32 percent per year during the next three years, 22

KatRina [158]

Answer:

$1.3794

Explanation:

The computation of the projected dividend for the coming year is shown below:

Last year dividend paid = Do

Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32

Dividend in Year 2 (D2) = Do ( 1+g)^2 = Do × 1.32^2

Dividend in Year 3 (D3) = Do ( 1+g)^3 = Do × 1.32^3

Dividend in year 4 , (D4) = D3 × (1+g) = Do × 1.32^3 × 1.22

Now the price at year 4 is

P4 = D4 × (1+g) ÷ ( R-g )

= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )

= Do × 100.08

Use Gordon Growth Model

The Current Price of Stock is

= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4

$78 = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)

$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )

Do = $1.045

Now

Projected Dividend for Year 1 is

= Do × 1.32

= $1.045 × 1.32

= $1.3794

8 0

3 years ago

Using the percentage-of-sales method, the estimated total uncollectible accounts are $7,322. The Allowance for Uncollectible Acc

xenn [34]

Answer:

B. $9,957.

Explanation:

The computation is adjusted amount for Uncollectible account expense is shown below:

= The estimated total uncollectible accounts + debit balance of Allowance for uncollectible accounts

= $7,322 + $2,635

= $9,957

For computing the adjusted amount we added the estimated total uncollectible accounts and the debit balance of Allowance for uncollectible accounts

8 0

3 years ago

Benefits of setting objectives for a company

In-s [12.5K]

Answer:

Help them evaluate the business' growth

Explanation:

When they set objectives, they can look at it later on and check if they had reached their goal. So they can see how far they've reached as a business.

8 0

3 years ago

Mattice Corporation is considering investing $720,000 in a project. The life of the project would be 11 years. The project would

lbvjy [14]

Answer:

The Project should be rejected.

The Net present value is lower than zero. Meaning the returns on the investment yields a loss, as we are not able to cover our initial investments.

Explanation:

The Present value of the inflow and outflow should be considered before deciding the viability of the project.

Using the Net Present Value approach, we will want to consider against the outflows and at a certain cost of capital/rate of return if this projects meets at least the minimum threshold of breaking even. At this point the net cash flow would be at least zero for the project to be accepted.

Kindly review the document attached for detailed workings.

3 0

3 years ago

For February, sales revenue is $900,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising e

FinnZ [79.3K]

Answer:

Option A

Total selling expenses for the month of February=$245,600

Explanation:

<em>The selling expenses include all the expenditure incurred in respect of activities revolving around the marketing and distribution of goods to the final consumer.</em>

<em>These expenditures may be fixed or variable in nature</em>

DATA

Sales revenue - $900,000;

Sales commission - 5%× 900,000 = 45000

Sales manager salaries - 96,000

Advertising expenses - 80,000

Shipping expenses - 2% × 900,000 = 18000

Miscellaneous selling expenses = 2100 + (1/2× 1%× 900,000) =6600

Total selling expenses for the month of February

= 45000 + 96,000 + 80,000+ 18000 + 6600 = $245,600

Total selling expenses for the month of February=$245,600

6 0

3 years ago