The answer is To give a sense of luxury
Answer:
No, these two rules are not inconsistent.
Explanation:
A profit-maximizing firm will hire the number of workers such that the wage is equal to the value of the marginal product of labor.
But, a profit-maximizing firm will also produce the quantity of output at the level where price equals marginal cost.
But this does not mean that these two rules contradict or are not consistent. Hiring workers at the level where their wage is equal to the marginal product of labor helps the firm in reaching the point where the price of the product is equal to the marginal cost of production.
Answer:
$ 1733
Explanation:
Cost Marginal Investment in Accounts Receivable = Marginal Investment in Accounts Receivable * firm's required return on investment
Marginal Investment in Accounts Receivable = Average Investments Under proposed Plan - Average Investments Under present Plans
Average Investments in Accounts Receivable = Total variable cost of annual sales / Turn over of account receivables
Turn Over of account receivables = 360/ average collection period.
Using above formula for calculation , Answer = $ 8665 * 20% = $ 1733
Answer:
The answer is:
A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to 4.8 times, suggesting improvement in efficiency.
Explanation:
We have the current Inventory turnover = COGS / Inventory = 41,700/10,000 = 4.17 times
=> An 15% increase in the Inventory turnover will bring the Inventory turnover ratio to: 4.17 x 1.15 = 4.8 times;
Increasing in inventory turnover may be the result of higher sales ( thus higher COGS) or low level of inventory holding - thus limiting the resources spending on idle inventory. So, higher level of inventory turnover in someways suggesting improvement in efficiency.
