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maxonik [38]
3 years ago
11

George and Dan's political consulting firm is losing money, but it is more than covering its variable costs. What is the most ac

curate statement we can make about it?
Business
1 answer:
aniked [119]3 years ago
3 0

Answer:

- It will go out of business in the long run.

Explanation:

If George and Dan's political consulting firm is losing money, but it is more than covering its variable costs, then the most accurate statement we can make about it is that: It will go out of business in the long run.

In the SHORT RUN, as long as the firm is covering variable costs, it means that the firm is able to generate normal profit or contribution that takes care of part or all of its fixed costs. It will stay in business

<u>In the LONG RUN, the firm will only continue to operate if it can make normal profits</u>

<u>Normal profit occurs when the difference between a company's total revenue and combined explicit and implicit costs are equal to zero.</u>

<u>Since George and Dan's political consulting firm cannot cover fixed costs, it will go out business in the long run.</u>

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The following are the transactions for the month of July. Units Unit Cost Unit Selling Price July 1 Beginning Inventory 40 $ 10
Agata [3.3K]

Answer:

                                                  (a) FIFO             (b) LIFO           (c) weighted

                                                                                                   average cost:

Cost of goods available for sale $2,600            $2,600              $2,600

Ending inventory                            1,540                1,500                  1,516      

Sales                                             $1,400              $1,400                 1,400  

Cost of goods sold                        1,060                 1,100                  1,083  

Gross profit                                    $340                $300                   $317        

Explanation:

a) Data and Calculations:

                                                Units    Unit Cost      Unit Selling       Price

July 1 Beginning Inventory        40          $ 10                                      $400

July 13 Purchase                     200              11                                     2,200

July 25 Sold                           ( 100 )                                $ 14            (1,400)

July 31 Ending Inventory         140

July 31 Goods available          240

Average unit cost = $10.83 ($2,600/240)

FIFO:

Cost of goods available for sale  $2,600 ($400 + $2,200)

Ending inventory                             1,540 (140 * $11)

Sales                                              $1,400 ($14 * 100)

Cost of goods sold                         1,060 (40 * $10 + 60 * $11)

Gross profit                                      $340

LIFO:

Cost of goods available for sale  $2,600 ($400 + $2,200)

Ending inventory                             1,500 (40 * $10 + 100 * $11)

Sales                                              $1,400 ($14 * 100)

Cost of goods sold                          1,100 (100 * $11)

Gross profit                                      $300

Weighted Average:

Cost of goods available for sale  $2,600 ($400 + $2,200)

Ending inventory                             1,516 (140 * $10.83)

Sales                                              $1,400 ($14 * 100)

Cost of goods sold                          1,083 (100 * $10.83)

Gross profit                                      $317

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Ultimate Company is a defendant in a lawsuit alleging damages of $3 billion. The litigation is expected to continue for several
Goshia [24]

Answer:

Option B.

Explanation:

A loss contingency refers to a charge to expense for what is considered to be a probable future event, such as an adverse outcome of a lawsuit. A loss contingency usually gives the person who is reading an organization's financial statements an early warning of a payment which is impending, and which is related to a likely obligation.

In the scenario presented above, we can see that Ultimate Company is involved in a lawsuit and might be expected to pay $3 billion, this reflects the situation of a loss contingency which should be disclosed in notes to Ultimate Company's financial statements.

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3 years ago
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Explanation:

In the Precipitation Map of Washington, the dark orange section indicates low rainfall in the region. Using the Shaded Relief Map of Washington, you can tell that this area is flat, possibly a plain. These areas normally don't get a lot of moisture. The Washington Precipitation Map has regions that are dark purple and dark orange. This means that they both get a lot of rain every year. If you look at these areas on the Washington Shaded Relief Map, you can see that these areas with a lot of rainfall are mountainous.

On the Washington Precipitation Diagram, purple/blue means more rain, and orange/red means less rain. Washington's Shaded Relief Map shows the mountains (br)

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3 years ago
Forest Components makes aircraft parts. The following transactions occurred in July.
rjkz [21]

Answer and Explanation:

Answer and explanation attached

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Cost of goods manufactured =ending finished goods+cost of goods sold -beginning finished goods= $553000

Beginning work in progress inventory=

Ending work in progress + cost of goods manufactured + materials returned - manufacturing overhead applied- issued raw materials-direct labour wages =$105490

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3 years ago
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Reptile [31]

Answer:

the government

Explanation:

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