Answer:
If the units are reworked, income will increase by $5,800.
Explanation:
Giving the following information:
Number of units= 1,000
Sell as-is= $4.3
Rework cost= $2.8
Selling price= $12.9
<u>Because the original cost will remain constant in both options, we will not take them into account.</u>
Sell as-is:
Effect on income= 1,000*4.3= $4,300
Rework:
Effect on income= 1,000*(12.9 - 2.8)
Effect on income= $10,100
If the units are reworked, income will increase by $5,800.
Answer:
if the loss is less than fixed costs
Price exceeds the average variable cost.
Explanation:
If a business is making losses and wants to shut down operations, it will need to keep paying the fixed cost component.
In a case where the loss made from running the business is less than the fixed cost that will be incurred, it is better for the business to keep producing in the short run. The cost of closing up will be higher.
Also the business should stay open if the price of a product is higher than its average variable cost. This is because as production increases the positive contributing margin will eventually exceed cost incurred. This can be achieved by scaling production upward.
Answer:
True
Explanation:
A public limited company can pay cash dividends to its shareholders for their contribution to the company. Therefore, the statement "West Company paid cash for dividend" is correct.
No other form of organization cannot pay dividends. They can pay a share of profit or extra benefits. Only in the corporation, especially in public limited, shareholders are given a cash dividend by its management body.
Answer:
A lot of different businesses could meet his needs. Many are illegal but one is to do delivery work for various restaurants.
Explanation:
