If productivity increases significantly and demand is not very elastic, what is likely to happen?

Garden Variety Flower Shop uses 900 clay pots annually. The pots are purchased at $2 each. Annual carrying costs per pot are est

wel

Answer:

EOQ= 255 units

Explanation:

Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.

To calculate the EOQ, we need to use the following formula:

Economic order quantity (EOQ)= √[(2*D*S)/H]

D= Demand in units

S= Order cost

H= Holding/carriying cost

EOQ= √[(2*900*20)/0.6]

EOQ= 255 units

5 0

3 years ago

Doing a budget makes ____________________________ less likely.

ehidna [41]

Answer:

The answer is put is bankruptcy if there aren't any choices

8 0

3 years ago

Carla Vista Co.’s trial balance at December 31 shows Supplies $8,780 and Supplies Expense $0. On December 31, there are $2,120 o

kolbaska11 [484]

Answer:

Explanation:

The adjusting entry is shown below:

On December 31

Supplies expense A/c Dr $6,660

To Supplies A/c $6,660

(Being supplies account is adjusted)

The supplies expense is computed by

= Supplies balance - supplies on hand

= $8,780 - $2,120

= $6,660

We simply debited the supplies expense account and credited the supplies account for $6,660

6 0

4 years ago

Which customers help in the profitability and growth of an organization? Both external and customers help in the profitability a

Tom [10]

Answer:

Satisfied and Loyal customers help in the profitability and growth of an organization.

Explanation:

When a company produces a product, they put their best in the design, process, manufacturing and dispatching of the product, so that their target customers use this product and gets satisfied. When consumers get the product of exactly their needs, they try to buy it again and again and becomes the loyal customers of that specific company. Such customers are the permanent customers of that organization and they are ready to pay for the product, thus helps in the profitability of the organization. Also when they talk about the product to other people, they become the marketing agents of the company, thus helping the company to grow. In this way, satisfied and loyal customers help in the profitability and growth of an organization.

8 0

4 years ago

Pomona Corporation issued 60,000 shares of $3 par value common stock at $21 per share and 9,000 shares of $30 par value, ten per

aleksandrvk [35]

Answer:

a.

Dr Cash 2,025,000

Cr Common stock 180,000

Cr Preferred stock 270,000

Cr Additional paid-in capital - common stock 1,080,000

Cr Additional paid-in capital - preferred stock 495,000

( to record the issuance of common stock and preferred stock)

Dr Treasury stock 46,000

Cr Cash 46,000

(to record repurchased of 2,000 common shares at $23 per share)

b.

Dr Cash 42,000

Cr Treasury stock 34,500

Cr Additional paid-in capital ( Treasury stock) 7,500

( to record 1,500 common stock sold at $28 per share)

c.

Dr Cash 10,000

Dr Additional paid-in capital ( Treasury stock) 1,500

Cr Treasury stock 11,500

( to record 500 common stock sold at $20 per share)

Explanation:

a.

*Issuance:

Cash receipt = Common stock unit price x number of common stock issued + Preferred stock unit price x number of preferred stock issued = 2,025,000

Common stock account and preferred stock account will be recorded as par value x number of stock issued. Thus: Common stock account = 60,000 x 3 = 180,000; Preferred sock account = 9,000 x 30 = $270,000

Additional paid-in capital common stock account balance and Additional paid-in capital preferred stock account balance each is equal to the difference between unit sell price and par value times number of stock issued. Thus: Common stock account = 60,000 x 18 = 1,080,000; Preferred sock account = 9,000 x 55 = $495,000.

* Repurchased:

Cash spent on repurchased = no of repurchased x repurchased unit price = 2,000 x 23 = $46,000

b.

Cash receipt ( Debit) = no of common stock sold x unit selling price = 1,500 x 28 = $42,000

Treasury stock will be credited at the amount equal : repurchased price x no of common stock sold = 23 x 1,500 = $34,500

The difference will be credited into Additional paid-in capital ( Treasury stock) $7,500

c.

Cash receipt ( Debit) = no of common stock sold x unit selling price = 500 x 20 = $10,000

Treasury stock will be credited at the amount equal : repurchased price x no of common stock sold = 23 x 500 = $11,500

The difference will be debited into Additional paid-in capital ( Treasury stock) $1,500.

7 0

3 years ago