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2 years ago

Match each term with the correct definition.

Business

1 answer:

JulijaS [17]2 years ago

6 0

Answer:

1. Economics - The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.

2. Opportunity cost - The next-best thing that must be forgone in order to produce one more unit of a given product.

3. Marginal analysis - Making choices based on comparing marginal benefits with marginal costs.

4. Utility - The pleasure, happiness, or satisfaction obtained from consuming a good or service.

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LO 7.2Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700

iogann1982 [59]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Sales in units:

January= 3,000

February= 2,000

March= 2,500

April= 2,700

May= 2,900

The required ending inventory is 20% of the next month's sales, and the beginning inventory on January 1 was 600 units.

The production budget for each month is calculated using the following formula:

Production= sales + desired ending inventory - beginning inventory

Production budget:

January:

Sales= 3,000

Ending inventory= (2,000*0.2)= 400

Beginning inventory= (600)

Total= 2,800

February:

Sales= 2,000

Ending inventory= (2,500*0.2)= 500

Beginning inventory= (400)

Total= 2,100

March:

Sales= 2,500

Ending inventory= (2,700*0.2)= 540

Beginning inventory= (500)

Total= 2,540

April:

Sales= 2,700

Ending inventory= (2,900*0.2)= 580

Beginning inventory= (540)

Total= 2,740

5 0

3 years ago

Cindy's Car Wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes

enyata [817]

Answer:

$500 is the correct answer.

Explanation:

5 0

2 years ago

Silk Company issued $500,000 of 7%, 10-year bonds on one of its interest dates for $431,850 to yield an effective annual rate of

Rudiy27

Answer:

interest expense 38,866.5 debit

discount on bond payable 3,866.5 credit

cash 35,000 credit

Explanation:

The effective method calculates the interest expense considering the carrying value and the market rate. Then, the difference with the coupon payment is amortization of the premium or discount

carrying value (issued price of the bonds) 431,850

market rate: 9%

interest expense: 431,850 x 9% = 38,866.5

coupon payment 500,000 x 7% = 35,000

this is the cash outlay for the bonds

Difference: 38,866.5 - 35,000 = 3,866.5

As the proceeds are lower than face value, this is a discount.

5 0

3 years ago

Outsourcing decision:-Walker, Inc. currently manufactures 4,000 motors for its electric scooters annually. Direct material costs

user100 [1]

Answer:

Walker shall continue to make such motors as there will be savings of $5,600

Explanation:

Variable cost per unit

Direct material = $44,000/4,000 = $11

Direct labor cost = $16,000/4,000 = $4

Variable overhead = $5

Total variable overhead = $20

Total Fixed cost = ($18 - $5) $\times$ 4,000 units = $52,000

Total cost of manufacturing = $52,000 + $20 $\times$ 4,000

= $52,000 + $80,000 = $132,000

In case of buying

Fixed cost = $52,000 $\times$ 80% = $41,600

Variable cost = $24 $\times$ 4,000 = $96,000

Total cost in case of buying = $137,600

Since the cost of buying motors is expensive than manufacturing, Motors shall be manufactured by Walker Inc.

In that case it saves = $137,600 - $132,000 = $5,600

7 0

3 years ago

The board of directors of a corporation: Multiple Choice Are elected by the corporate registrar. Are responsible for day-to-day

hram777 [196]

Answer:

Are responsible for and have final authority for managing corporate activities.

Explanation:

Here are the complete options

The board of directors of a corporation:

a) Are elected by the corporate registrar.

b) Are responsible for day-to-day operations of the business.

c) Do not have the power to bind the corporation to contracts, due to lack of mutual agency.

d) May not also be executive officers of the corporation, due to the separate entity principle.

e) Are responsible for and have final authority for managing corporate activities.

A corporation is a business that is owned by shareholders. The corporation is a separate legal entity and so it can sue and be sued, pay taxes and own assets.

Advantages of a corporation include :

1. they have unlimited liabilities

2. they have unlimited life. the business doesn't end even after the death of the owners unlike a sole proprietorship

3. they have more access to capital

Disadvantages of a corporation include :

high cost of setting up

Earnings to shareholders are taxed twice

Managers of a corporation :

are elected by the shareholders of the firm
they are responsible for and have final authority for managing corporate activities.

6 0

2 years ago