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3 years ago

When a business owner is asked how the business is doing and she replies,

Business

1 answer:

Rama09 [41]3 years ago

5 0

Answer:

That we are no profit and loss position.

Explanation:

Breakeven point is the point at which the company is at no profit no loss position. If the lady is saying that we are breaking even, its one explanation is that all that we have earned has covered all of our costs. The second explanation is dependant on the fixed cost considered. If the fixed cost considered is for whole of the year and we are breaking even at the 8th month then the contribution in the next four months would be 100% profit.

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Which of the following is TRUE regarding the economic order quantity (EOQ) model? A. Demand rate is dependent on order quantity.

Oduvanchick [21]

Answer:

D. Holding cost per unit per year is dependent on the selling price per unit.

Explanation:

The formulas are shown below:

Economic order quantity:

= $\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

The number of orders would be equal to

= Annual demand ÷ economic order quantity

The average inventory would equal to

= Economic order quantity ÷ 2

The total cost of ordering cost and carrying cost equals to

Ordering cost = Number of orders × ordering cost per order

Carrying cost = average inventory × carrying cost per unit

If in the question, the carrying cost is given in the percentage than the per unit cost is come after multiplying it with the selling price per unit

5 0

3 years ago

Assume the corporate tax view of capital structure. Your unleveraged cost of capital is 13%. Your corporate tax rate is 30%. You

sergejj [24]

Answer:

C. 11.05%

Explanation:

The computation of the cost of capital under the proposed leveraging is shown below;

cost of capital is

=Debt÷ value of leverged firm × ((unlevered cost of capital × (1 - tax rate))

=800 ÷ 1600 × ((13% + (13%) × (1 - 30%)))

= 11.0500%

hence, the cost of capital is 11.05%

8 0

3 years ago

What is true about hotel management companies?

abruzzese [7]

they generally manage hotels for a fee

5 0

2 years ago

On April 1, 2019, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What

emmainna [20.7K]

Answer:

The insurance expense on the annual income statement for the year ended December 31, 2019 will be D. $337.50

Explanation:

The company paid the $1,350 premium on a three-year insurance policy.

The insurance expense per year = $1,350/3 = $450

From April 1, 2019 to December 31, 2019, the company had bought the insurance for 9 months.

The insurance expense on the annual income statement for the year ended December 31, 2019 = $450/12x9 = $337.5

6 0

3 years ago

Flex Co. uses a periodic inventory system. The following are inventory transactions for the month of January: 1/1 Beginning inve

Radda [10]

Answer:

The total cost of goods sold = $37,500

Explanation:

Given:

Beginning inventory = 10,000 units at $3

Purchase inventory = 5,000 units at $4

Purchase inventory = 5,000 units at $5

Sale inventory = 10,000 units at $10

Total inventory units = [10,000 + 5,000 +5,000]

Total inventory units = [20,000]

Total Cost of inventory units = [(10,000×$3) + (5,000×$4) + (5,000×$5)]

Total Cost of inventory units = [$30,000 + $20,000 + $25,000]

Total Cost of inventory units = [$75,000]

Average price per unit = Total Cost of inventory units / Total inventory units

Average price per unit = $75,000 / 20,000

Average price per unit = $3.75

The total cost of goods sold = 10,000 units sold × $3.75

The total cost of goods sold = $37,500

3 0

3 years ago