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allochka39001 [22]
3 years ago
15

What is it meant by economies of scale?

Business
1 answer:
joja [24]3 years ago
8 0
Economies of scale refers to the cost advantage that emerges or become visible with higher or improved output of a product. There is an inverse relationship between the quantity proposed and per unit fixed costs therefore, if the product or good is produced in large or high quanity the per unit fixed cost goes down because it can already be shared with other large number of goods. There are two types of economics of sale, the internal and of course the external.
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The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in
spin [16.1K]

Question Completion:

Condensed Balance Sheet:

Cash                                      $115,000

Other assets                          760,000

Total assets                         $875,000

Accounts payable               $232,000

Ferris, loan                               43,000  

Hardwick, capital                   270,000

Saunders, capital                   170,000

Ferris, capital                         160,000

Total liabilities and capital $875,000

Answer:

The Partnership of Hardwick, Saunders, and Ferris

Proposed Schedule of Liquidation:

Net proceeds from sale of assets          $526,000

Share of net proceeds:

Hardwick    4/10 * $526,000 $210,400

Saunders   3/10 * $526,000  $157,800

Ferris         3/10 * $526,000  $157,800 $526,000

Explanation:

a) Data and Calculations:

Condensed Balance Sheet:                

Cash                                      $115,000    

Other assets                          760,000

Total assets                         $875,000

Accounts payable               $232,000

Ferris, loan                               43,000  

Hardwick, capital                   270,000

Saunders, capital                   170,000

Ferris, capital                         160,000

Total liabilities and capital $875,000

Schedule of Assets Disposal:

Cash                                                         $115,000    

Other assets:

40% of $760,000 ($304,000) sold for  230,000

60% of $760,000 ($456,000) sold for  456,000

Proceeds from disposal, including cash 801,000

Settlement of Accounts Payable          -232,000

Settlement of Ferris, loan                        -43,000

Net proceeds                                          526,000

                                  Hardwick   Saunders      Ferris

Capital accounts      $270,000   $170,000   $160,000

Final settlement          210,400     157,800      157,800

7 0
3 years ago
A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the
eduard

Answer:

$17.9469

Explanation:

Calculation for what dollar wage must be paid in the third year

Since the first year is tend to be the base year in which the real wage and nominal wage are both $15 per hour in that year.

The real wage is suppose to increase by 2 percent in the second year which means that the real wage in year two will be $15.30 ($15 * 1.02) per hour.

In a situation where the real wage was supposed to also increase by 2 percent in the third year, this means that the real wage in year three will be $15.606 ($15.3 * 1.02) per hour.

Therefore In order for us to find the nominal wage in third year , we have to index the real wage in order for it to adjust for inflation. Thus the nominal wage in third year will be $17.9469($15.606 * 1.15).

Therefore what dollar wage must be paid in the third year will be $17.9469

3 0
3 years ago
The benefits of operating a business as a limited liability corporation include all of the following EXCEPT ________.
N76 [4]
<span>The benefits of operating a business as a limited liability corporation include all of the following EXCEPT the business cannot be sued by another party. In an LLC you are not able to be sued by another party. An LLC is similar to a partnership and a sole-prioprietorship with the interworking of a corporation. In an LLC there is a tax break given by following the partnership and sole-proprietorship methods. Due to the tax breaks, an LLC is a popular business model that many small businesses use. </span>
5 0
2 years ago
____ reading will increase your focus and concentration, help you understand the reading, and prepare you to study.
Studentka2010 [4]

Answer:

Active.

Explanation:

Active reading can be defined as a process which typically involves an individual being focused on his or her study. It is aimed at acquiring knowledge and understanding of a particular subject or topic without distractions.

Hence, active reading will increase your focus and concentration, help you understand the reading, and prepare you to study.

5 0
3 years ago
Dee's made two announcements concerning its common stock today. First, the company announced that the next annual dividend will
amid [387]

Answer:

The value of the stock at the given discount rate is $9.5

Explanation:

Here, we are interested in calculating the value of the stock at the given discount rate.

To do this, we employ a mathematical formula;

Value of the stock = Expected dividend ÷ (discount rate-growth rate)

According to the question, we identify the following;

Expected dividend = $1.58

Growth rate(negative) = -1.15% = -1.15/100 = -0.0115

Discount rate = 15.5% = 15.5/100 = 0.155

Plugging these values into the equation, we have;

Value of the stock = 1.58 ÷ (0.155 - (-0.0115)

Value of the stock = 1.58/(0.155 + 0.0115)

Value of the stock = 1.58/0.1665 = $9.5

5 0
3 years ago
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