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4 years ago

1. Choose a real or made up example of a company, and describe at least three variable costs the

Business

1 answer:

Softa [21]4 years ago

4 0

Answer:

Let Sanguine Wines Ltd. refer to a hypothetical company for the purpose. Following would constitute Sanguine Wines Ltd's variable costs:

Raw Material or input prices: The raw material or inputs of sanguine wines limited purchases from suppliers such as dried grapes, sugar and the likes. The price of such inputs is prone to seasonal fluctuation and thus variable
The performance related incentive for employees for number of bottles of wine created, would be variable cost as it would vary with the no of bottles produced.
Discount allowed to distributors which varies based upon the number of bottles purchased by them.
Commission paid to wine salesperson which varies with respect to bottles sold.

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Piazza, a pedestrian, was injured when struck by a vehicle driven by Delaney, who ran a stop sign. At the time of the accident,

Ghella [55]

Answer:

Piazza should sue DGA Corporation because he (or she?) was struck by a company vehicle and the driver was acting within the scope of his normal employment tasks. Piazza might also sue Delaney along with DGA, since DGA is a small corporation and as a corporation is considered a separate legal entity whose shareholder equity might be really low.

Piazza can sue for compensatory damages including pain and suffering, medical bills and lost wages.

6 0

3 years ago

Cash Discount Calculations On June 1, Meadow Company sold merchandise with a list price of $40,000. For each of the sales terms

Step2247 [10]

Answer:

Credit Terms Date Paid Amount received

1 2/10,n/30 June 8 $39,200

2 1/10, n/30 June 15 $40,000

3 1/15, n/30 June 14 $39,600

4 n/30 June 28 $40,000

Explanation:

Sales are made on June 1 with list price $40,000

June 8

The receipt is within the discount period of 10 days, so the amount received will be net of 2% discount as follow

Amount Received = $40,000 x ( 1 - 2%) = $39,200

June 15

The receipt is after the discount period of 10 days, so the full amount will be received as follow

Amount Received = $40,000

June 14

The receipt is within the discount period of 15 days, so the amount received will be net of 1% discount as follow

Amount Received = $40,000 x ( 1 - 1%) = $39,600

June 28

There is no discount offered in this term and credit period of 30 days is given. The cash receipt is within the credit period, So the full amount will be received as follow

Amount Received = $40,000

4 0

3 years ago

The rule of supply and demand says that

LuckyWell [14K]

Answer:

C ) As demand increases,price increases

4 0

3 years ago

Read 2 more answers

Payback period computation; even cash flows LO P1

uranmaximum [27]

Answer:

A. 2.2 years

B. 3.6 years

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

Payback = amount invested / annual cash flows

Payback period is calculated using cash flows. So, the net income has to be changed to cash flows by adding back depreciation.

For the first machine

Straight line depreciation expense = (Cost of asset - salvage value) / number of years

( $520,000 - $10,000) / 6 = $85,000

Cash flow = $85,000 + $150,000 = $235,000

For the second machine, depreciation = ( $380,000 - $20,000) / 8 = $45,000

Cash flow = $45,000 + $60,000 = $105,000

Payback period for machine a = $520,000 / $235,000 = 2.2 years

Pay back period For machine b =

$380,000 / $105,000 = 3.6 years

I hope my answer helps you

3 0

3 years ago

Cherry Creek Development, LP, is a limited partnership that invests in residential real estate projects. Its limited partners in

soldier1979 [14.2K]

Answer:

d. participates in the firm’s management.

Explanation:

A limited partnership is a form of business ownership with two or more partners. Limited partnerships are made up of general partners and limited partners.

The general partner manages the daily business operations. He makes investment decisions on behalf of the enterprise. He has unlimited liabilities to the debts and the liabilities of the business.

A limited partner is also known as silent partner. He does not take part in the management of the business. He has no voting rights. His liability is limited to the total amount of his investments

7 0

3 years ago