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solniwko [45]
3 years ago
6

When you are interpreting financial ratios, it is useful to compare a company's ratios to some form of standard. true?

Business
1 answer:
antiseptic1488 [7]3 years ago
5 0
The statement is true. A financial ratio or also known as the  accounting ratio is a relative size of two chose numerical esteems taken from a venture's monetary articulations. Regularly utilized as a part of bookkeeping, there are numerous standard proportions used to endeavor to assess the general monetary state of a partnership or other association.
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When identical units of an item are purchased at different costs,
Masja [62]
When identical units of an item are purchased at different costs: <span>an inventory cost flow method must be used under both a perpetual and a periodic inventory system.

A perpetual inventory system will update your inventory on hand after each sale or purchase of inventory is made.  A periodic inventory system is updated periodically, meaning, a company will give a time period they would like their sales and purchases to update in and the system will perform that. Both systems are great for a business but it's their option of how they are generated. 
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7 0
3 years ago
Serial Problem Business Solutions LO P4 Business Solutions sells upscale modular desk units and office chairs in the ratio of 3:
stich3 [128]

Answer:

Instructions are below.

Explanation:

Giving the following information:

The selling prices are $1,310 per desk unit and $560 per chair. The variable costs are $810 per desk unit and $310 per chair. Fixed costs are $180,000.

The company sells 3 deks per 2 chairs.

Sales proportion:

Desks= 3/5= 0.6

Chairs= 2/5= 0.4

1) Selling price per composite unit= sales proportion*selling price

Selling price per composite unit= 0.6*1,310 + 0.4*560

Selling price per composite unit=  $1,010

2) Variable cost per composite unit= sales proportion*unitary variable cost

Variable cost per composite unit= 0.6*810 + 0.4*310

Variable cost per composite unit= 610

3) Break-even point (units)= Total fixed costs / Weighted average contribution margin

Break-even point (units)= 180,000/ (1,010 - 610)

Break-even point (units)= 450 units

4) Number of units for each product:

Desks= 0.6*450= 270

Chairs= 0.4*450= 180

5 0
3 years ago
A large life insurance company has decided to switch from using a strong fear appeal to a humorous approach. What are the streng
BlackZzzverrR [31]

Answer:

Explanation:

A fear approach is meant to scare people and make them aware that they are only human and that bad things can happen. This would push them towards buying the insurance package. A humorous approach would focus more and a funny message of why it is important. This change would be targetting the same audience but with a completely opposite message which may not reach people the same way, especially if those individuals do not like the humor aspect of it and are not longer scared from the previous fear strategy that the company would have had.

5 0
2 years ago
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5 per unit. Minor currently produces a
lara31 [8.8K]

Answer:

A special order for 1,125 units generates $1,250 in extra profit. This order (1,500 units) increases profits by $2,000

Explanation:

special order for 1,500 units at $5

regular production 7,500 units at $6

spare capacity 2,500 units (total capacity = 7,500 / 75% = 10,000)

production costs of regular units:

  • variable costs = $3 per unit
  • fixed costs = $1.50 per unit
  • total = $4.50 per unit

new machine is required that costs $1,000

regular fixed costs are not affected by special order

profit from special order:

  • total revenue = 1,500 x $5 = $7,500
  • relevant costs = 1,500 x $3 = ($4,500)
  • new machine = ($1,000)
  • additional profit from special order = $2,000

But Minor only wishes to earn $1,250 from special order, so the number of units should be:

($1,000 + $1,250) / ($5 - $3) = $2,250 / $2 = 1,125 units

6 0
3 years ago
A new campaign gets your attention because the people shown in the ad seem a lot like you. this is known as:
sveta [45]
This promotion is called Advertising. This is when a sponsor or artist introduce a product that may capture the viewers in many forms (e.g emotional, social, personal etc.). This bring good image to the product that will help entice consumers to buy it.-ahnnahly
7 0
3 years ago
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