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faltersainse [42]
3 years ago
14

Over a five-year span, the ABC Co. reduced the amount of labor it hired. At the same time, the marginal productivity of labor in

creased. Which of the following COULD explain this observation? (a)the law of diminishing marginal returns (b)labor saving technical change (c)organizational innovation (d)All of the above.
Business
1 answer:
tankabanditka [31]3 years ago
5 0

Answer: D. All of the above

Explanation: The three options listed could explain why the productivity of labor increased with a reduction in the quantity of labor hired. The law of diminishing returns states that as more and more inputs of production are added, a time comes in when additional inputs causes no corresponding increase in productivity. At points like this a reduction in the input added would restore productivity.

Reducing the amount of labor obviously is a labour saving technical change. Changes in organizational innovation can also result in changes in productivity.

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Some financial experts recommend people create their personal budgets as follows: 50% on
AURORKA [14]

Answer: 592.614

Explanation:

She should spend 592.614 on wants because 592.614 is 30% of 1975.38

8 0
3 years ago
Horten Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make
Aneli [31]

Answer:

Horten Sporting Goods Corporation

                                    TR                BR

a. Cost per unit         $66.98        $62.08

b. Price of Badminton Racquets = $80.70

Explanation:

a) Data and Calculations:

                                   Tennis              Badminton

                                Racquets              Racquets

Units produced          70,000                 30,000

Direct costs:

Direct materials      $17.10 per unit      $14.80 per unit

Direct labor             33.50 per unit        23.10 per unit

Category       Estimated   Cost Driver                         Amount of Cost Driver

                          Cost                                                      TR         BR      Total

Unit level       $736,000 Number of inspection hrs   15,900  7,100  23,000

Batch level      353,800  Number of setups                     83       39        122

Product level   152,500  Number of TV commercials       4          1            5

Facility level   630,000   Number of machine hrs  30,600 39,400 70,000

Total           $1,872,300

Overhead Rates:

Inspection  = $32 ($736,000/23,000) per inspection hour

Equipment setup = $2,900 (353,800/122) per equipment setup

TV commercials = $30,500 ($152,500/5) per commercial

Depreciation = $9 ($630,000/70,000) per machine hour

Overhead Allocation:

                                                        TR                  BR                    Total

Inspection  = $32                     $508,800       $227,200       $736,000

                               ($32*15,900)           ($32*7,100)

Equipment setup = $2,900       240,700            113,100         353,800

                                ($2,900*83)            ($2,900*39)

TV commercials = $30,500      122,000            30,500          152,500

                               ($30,500 *4)            ($30,500 *1)

Depreciation = $9                    275,400          354,600         630,000

                              ($9 * 30,600)            ($9 * 39,400)    

Total allocated expenses   $1,146,900        $725,400     $1,872,300

Units produced                        70,000           30,000

Overhead cost per unit         $16.384           $24.18

Cost per unit:

                                    TR                BR

Direct materials        $17.10         $14.80

Direct labor               33.50           23.10

Overhead cost          16.38            24.18

Total cost per unit $66.98        $62.08

Cost of Badminton = $62.08

30% markup =              18.62

Price =                        $80.70

7 0
3 years ago
The deprecation method that charges more expenses in earlier years than in later years is
vlabodo [156]
Double-declining balance. Keep in mind there are three main ways to depreciate: straight-line, units of production, and double declining balance. Straight-line means depreciating the same amount every year. Units of production is based off your production levels for the year. Double declining means you depreciate more in earlier years (2 times your straight-line rate) and depreciate less in later years. 
4 0
3 years ago
Read 2 more answers
Splish Brothers Inc. issues $4.8 million, 5-year, 7% bonds at 102, with interest payable on January 1. The straight-line method
Radda [10]

Answer and Explanation:

The Journal entries are shown below:-

Interest expense Dr, $316,800

Premium on bonds payable Dr, $19,200 ($96,000 ÷ 5)

            To Interest payable $336,000    ($4,800,000 × 7%)

(Being interest expense and bond premium amortization is recorded)

Here we debited the interest expenses and premium on bonds as it increased the expenses and we credited the interest payable as it also increased the liabilities

5 0
3 years ago
What is the weighted average cost of capital (WACC) for ABC Limited which has the following capital structure? $5m of equity wit
katrin2010 [14]

The weighted average cost of capital (WACC) for ABC Limited is 12.63%

The weighted average cost of capital(WACC) of a firm is the average cost of finance incurred by the firm on all its sources of finance.

It is determined as the sum of the cost of each source of finance multiplied by their respective weights in the firm's capital structure.

By weights, I mean the percentage of funding each source contributes to the total finance available at the firm's disposal.

WACC=(weight of equity*cost of equity)+(weight of mezzanine finance*cost of mezzanine finance)+(weight of debt*cost of debt)

weight of equity=equity finance/total finance

cost of equity=15%

weight of mezzanine finance=mezzanine finance/total finance

cost of mezzanine finance=9.5%

weight of debt of finance=debt finance/total finance

total finance=$5m+$2m+$1m

total finance=$8m

WACC=($5/$8*15%)+($2/$8*9.5%)+($1/$8*7%)

WACC=12.63%

Find further guidance on weighted average cost of capital's computation in the link below:

brainly.com/question/25566972

#SPJ1

7 0
2 years ago
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