Answer:
$13,725
Explanation:
The movement in the warranty payable account over a period is as a result of the warranty expense for the period and the warranty payments made during the period.
Given that the company estimate warranty expense at 4.5% of sales, the estimated warranty for the period is the expense recorded in the income statement. This is equivalent to
= 4.5% * $305,000
= $13,725
Answer: 2 years
Explanation:
The payback period is the amount of time that is needed for the required cash inflow of a project to offset the initial cash outflow that the business offsets. The payback period is when the initial outlay of an investment is recovered. There are two different methods used to calculate payback period. We have the average method and the subtraction method.
In the above question, the payback period is solved as follows:
Labour cost decreases by 10% for each unit.
Therefore,
= $10 × 10%
= $10 × 0.1
= $1 per unit.
In order to recover $2000, the business needs to sell the following;
= 2000/1
= 2000units.
If Eric sells 1000 units per year of Emu, it will take:
2000/1000= 2years
In conclusion, the payback period of the investment is 2 years.
Buffer of inventory can absorb variations in flow rates by acting as a source of supply for a downstream step.
<h3>
What is a buffer?</h3>
- In manufacturing, a buffer is used to account for fluctuations in the production process. Consider a buffer as a means to guarantee that your production line will continue to function normally even if unexpected circumstances arise.
- Having enough supplies on hand to ensure smooth operations is one example of a buffer in manufacturing. To help stabilize any fluctuations they encounter with their supply and demand chains, production capabilities, and lead times, manufacturers will often keep inventories of the raw materials and supplies needed for production on hand, as well as occasionally inventories of finished goods awaiting shipment.
- Without the proper buffers, manufacturing procedures may sluggish, which would result in more costs and lower profitability.
To know more about buffer with the given link
brainly.com/question/19093015
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Answer: "intellectual capital" .
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