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seropon [69]
3 years ago
5

Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finis

hed improperly. Fancy can sell the tables as seconds for $305,000 or spend an additional $315,000 to refinish them and sell them for $605,000.
Which of the following is not relevant to management's decision regarding refinishing the tables or selling them as is?
a) The additional $300,000 revenue that can be generated if the tables are refinished.
b) The $355,000 manufacturing cost of the tables already incurred.
c) The additional $315,000 cost to refinish the tables.
d) The effect of selling "seconds" on Fancy's reputation as a fine-furniture manufacturer.
Business
1 answer:
Law Incorporation [45]3 years ago
7 0

Answer:

b) The $355,000 manufacturing cost of the tables already incurred.

Explanation:

The Business has already incurred this expense in making the coffee tables, this can not be done. Therefore, it does not make sense to consider this when considering whether to complete the

Tables, or sell them as they now are

All other points contribute either directly or indirectly to the decision that the company is about to take in this regard.

So, the correct answer is b

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The Fisher formula is expressed as _____ where R is the nominal rate, r is the real rate, and h is the inflation rate.
Elis [28]

Hello !

Answer :

The Fisher formula is expressed as 1+R = (1 + r) x (1+ h) where R is the nominal rate, r is the real rate, and h is the inflation rate.

3 0
2 years ago
In January 2016​, currency held by individuals and businesses and​ traveler's checks was ​$1,347 ​billion; checkable deposits ow
Zielflug [23.3K]

Answer:

M_1 = $3111

M_2 = $12409

Explanation:

    Given data:

Amount of currency held  =  $1347 billion

checkable deposit $1347 billion

saving deposit $8189 billion

small time deposit $400 billion

market fund $709 billion

Saving deposit in the form M2 and M1

M_1 =  currency held as individual and traveller check +  checkable deposit

       = $1347 + $1764

M_1 = $3111

M_2 = M_1 +  saving deposit _ time deposit + maket funds

       = $3111 + $8189 + $400 + $709

M_2 = $12409

3 0
3 years ago
Debt analysis Springfield Bank is evaluating Creek​ Enterprises, which has requested a $ 3 comma 620 comma 000 ​loan, to assess
stepan [7]

Answer:if the debt ratio is lower,the loan request should be granted but if it is higher the loan request should not be granted by the bank.

Explanation:

Debt ratio is a financial ratio which shows the ability of a firm to pay their debt as they fall due.lenders are more concerned with the liquidity position of a firm in order to guarantee the solvency of the firm whenever a loan is granted to such a firm. The debt ratio is used to know the financial leverage of a firm and the financial risk involved in lending to such firm. When a firm is said to be highly leverage it means that such a firm will find it difficult to pay their debt as they fall due because the liabilities in their balance sheet is more than their assets. Debt ratio is calculated as

Total Liabilities/ Total Assets

The Debt ratio is calculated from the Liabilities and Asset figures obtained from their balance sheet. When it is calculated, lower ratio is more preferable than higher rato because it means that a firm will find it easy to settle their debt to their lenders as that debt fall due.but a higher ratio is an indication that such firm will not be able to meet their debt obligation to their lenders as they fall due. Therefore, when a firm has a higher debt ratio it is not advisable to grant a loan to such a firm by the bank. As regard the loan request of Creek Enterprises from Springfield bank, if the debt ratio of Creek Enterprises is lower, the loan should be granted but if it is higher the bank should not grant the loan.

5 0
3 years ago
The employees of Pi's Pizza, a local pizza restaurant, feel that the owners and managers really try to follow the ethical polici
weeeeeb [17]

Answer: (C) Ethical climate

Explanation:

 The ethical climate is one of the organizational based atmosphere where the company basically focuses on the employees ethical values, laws and the environment that helps in making different types of complex decisions.

The main purpose of the ethical climate in an organization is that it helps in maintaining the values, principle and the moral of the company employees.

According to the given question, the Pi's pizza is one of the restaurant that maintain the ethical climate by follow the various types of ethical policies. Therefore, Option (C) is correct answer.  

7 0
3 years ago
An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery c
Nikolay [14]

Answer:

$172.25

Explanation:

initial outlay for the project = -$350

cash flow years 1-5 = [($300 - $135 - $70) x (1 - 36%)] + $70 (depreciation expense) = $60.80 + $70 = $130.80

using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:

=NPV(8%,130.80,130.80,130.80,130.80,130.80) - $350 = $522.25 - $350 = $172.25

we can also do it manually:

NPV = -$350 + $130.80/1.08 + $130.80/1.08² + $130.80/1.08³ + $130.80/1.08⁴ + $130.80/1.08⁵ = $172.25

6 0
3 years ago
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