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3 years ago

What area of expense is best to target when looking for possible ways to cut back on spending

Business

1 answer:

jarptica [38.1K]3 years ago

3 0

Answer:

If we are talking about corporate spending, then it's best to cut overhead costs, because direct labor or direct materials are harder to cut since a cut in these areas would cause a reduction in output production.

If we are talking about personal spending, then, it's best to cut sumptuary expenses like eating out, or taking expensive vacations. Utilities, rent, and debt are harder to cut.

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EA15.

alexgriva [62]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

flexible budget:

direct materials of $2 per unit

direct labor of $3 per unit

manufacturing overhead of $1 per unit.

Fixed costs are $35,000.

20,000 units:

Total direct material= 2*20,000= 40,000

direct labor= 3*20,000= 60,0000

overhead= 1*20,000= 20,000

Total manufacturing costs= $120,000

Fixed costs= 35,000

Total product costs= $155,000

25,000 units:

Total direct material= 2*25,000= 50,000

direct labor= 3*25,000= 75,0000

overhead= 1*25,000= 25,000

Total manufacturing costs= $150,000

Fixed costs= 35,000

Total product costs= $185,000

3 0

3 years ago

Both parties to a valid and enforceable contract must provide consideration. In a contract for the sale and purchase of real est

Wittaler [7]

Answer:

The correct answer is C

Explanation:

The seller consideration is the consideration which is defined as to take the property off the place as well as the market it into the escrow.

For example, if the buyer wants to bought the house, then the buyer will provide an earnest amount of money deposit (it will be the consideration of the buyer), and the seller would agree to sell the home to the buyer (it is the seller consideration).

So, in the agreement of sale and the purchase of the real estate, the seller consideration is to give the property to the buyer.

3 0

3 years ago

What is the yield to maturity of a ten-year, $1000 bond with a 5.2% coupon rate and semiannual coupons if this bond is currently

Anna35 [415]

Answer:

A. 6.82%

Explanation:

Yield to Maturity is a discounting rate which equals all the cash outflows related to bond with the present /current market value of bond. YTM is calculated by trial and error method. Since the options are available in the question, we can use those options to find out correct YTM.

First we are taking YTM 6.82%

Semi-annual YTM = 3.41%

Coupon Interest semi annual = 1000*5.2%*1/2

= $26

No of times interest paid = 10*2

= 20

Present Value of bond

= Coupon Interest*PVIFA (YTM, 20) + Par Value x PVIF (YTM, 20)

= 26*PVIFA (3.41%, 20) + 1000*PVIF(3.41%, 20)

= (26*14.32884) + (1,000*0.511386)

= 372.55 + 511.39

= $884

At YTM 6.82% all the future cash flows of bond is equals to its current value.

Therefore, The correct YTM is 6.82%

4 0

3 years ago

O'Neill, Incorporated income statement for the most recent month is given below. A proposal has been made that will lower variab

topjm [15]

Answer:

c. increase by $2,000

Explanation:

The computation of company net operating income is shown below:-

New amount for Store A variable expenses = Sales percentage × Store A sales

= 0.62 × $100,000

= $62,000

Change in net operating income = (Variable expenses of store A - New amount for Store A variable expenses) - Fixed expenses

= ($72,000 - $62,000) - $8,000

= $10,000 - $8,000

= $2,000 increase

4 0

3 years ago

If suppliers expect the price of their product to fall in the future, then they will

jarptica [38.1K]

...lower the amount of products they create.

8 0

3 years ago

What area of expense is best to target when looking for possible ways to cut back on spending￼

What area of expense is best to target when looking for possible ways to cut back on spending