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3 years ago

Why do you think it is important to choose the correct Business organization

1 answer:

3 0

Not choosing the correct business organization to set up would become very costly for an individual hoping to start operations and this would result in business failure even before the business began operations.

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Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for

Novay_Z [31]

Answer:

Joe's Pizza Parlor

The highest number of workers that Joe will hire if he must pay each one $35 a day is

4 workers.

If he wants to maximize his profits without satisfying customers' demand, Joe can choose to work with 2 or 3 workers. However, he can renegotiate the worker's wages downwards.

Explanation:

a) Data and Calculations:

Price of pizza = $5

Wage per worker = $35/day

Number of Workers 0 1 2 3 4 5

Pizzas Baked Per Day 0 12 18 24 30 32

Total revenue 0 60 90 120 150 160

Marginal revenue 0 60 30 30 30 10

Marginal cost of labor 0 35 70 105 140 175

Profit 0 25 20 15 10 -15

7 0

3 years ago

According to the Break-Even EBIT analysis, shareholders are ____ off with debt when EBIT is _____ the Break-Even EBIT level

Kobotan [32]

Answer:

Answer B.

Explanation:

EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.

3 0

3 years ago

Consider the following financial statement for Heir Jordan Corporation. HEIR JORDAN CORPORATION Income Statement Sales $ 48,500

sp2606 [1]

Answer:

HEIR JORDAN CORPORATION

Income Statement

Sales $ 48,500 * 120%....................58,200

Costs 34,500 * 120%........................41,400

Taxable income $ 14,000...............16,800

Taxes (35%) 4,900 ...........................5,880

Net income $ 9,100 ........................10,920

Dividends $ 2,900 ..(31.87%)..........3,480

Former Addition to retained earnings 6,200

New Addition to retained earnings 7,440

Explanation:

Consider the following financial statement for Heir Jordan Corporation.

HEIR JORDAN CORPORATION

Income Statement

Sales $ 48,500 * 120%....................58,200

Costs 34,500 * 120%........................41,400

Taxable income $ 14,000...............16,800

Taxes (35%) 4,900 ...........................5,880

Net income $ 9,100 ........................10,920

Dividends $ 2,900 ..(31.87%)..........3,480

Former Addition to retained earnings 6,200

New Addition to retained earnings 7,440

Pay out ratio is 31.87% of Net income which is derived by Dividends/Net Income

4 0

3 years ago

The following information is from the materials requisitions and time tickets for Job 9-1005 completed by Great Bay Boats. The r

Nata [24]

Answer:

Total cost for Job 9-1005 = $ 5,085

Explanation:

Calculation for total cost for Job 9-1005

Direct materials

Q-4698 $1,250

Q-4725 $1,000

Total Direct material cost = $ 2,250

Direct labor

W-3393 $ 600

W-3479 $ 450

W-3559 $ 300

Total direct labour Cost = $ 1,350

add: Overhead cost 110% of total direct labor cost: $1,350×110%= $1,485

Total Cost on Job is: $2,250+$1,350+$1,485 = $5,085

5 0

3 years ago

There are two common measures of economic growth: (1) increases in real GDP over some period of time and (2) increases in real G

Komok [63]

'There are two common measures of economic growth: increases in real GDP over some period of time and increases in real GDP per capita over some time period.

This statement is True.

Gross domestic product is a monetary measure of the market value of all final goods and services produced and sold by a country in a given period of time. Due to its complex and subjective nature, this indicator is often revised before being considered a reliable one.

GDP = private consumption + private gross investment + government investment + government expenditure + (exports – imports). GDP is usually calculated by a country's national statistical agency according to international standards.

GDP measures the monetary value of the final goods and services produced in a country (that is, purchased by final consumers) over a specified period of time (such as a quarter or a year). Counts all electricity generated within a country's borders.

Learn more about GDP brainly.com/question/1383956

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7 0

1 year ago