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Ganezh [65]
3 years ago
13

A firm practices a chase strategy. Production last quarter was 1000. Demand over the next four quarters is estimated to be 900,

700, 1000, and 1000. Hiring cost is $20 per unit, and layoff cost is $5 per unit. Over the next year, what will be the sum of hiring and layoff costs
Business
1 answer:
asambeis [7]3 years ago
7 0

Answer:

$7,500

Explanation:

last quarter production was 1,000

production for the next four quarters:

  1. 900 ⇒ so 100 will be fired = 100 x $5 = $500 firing costs
  2. 700 ⇒ so 200 will be fired = 200 x $5 = $1,000 firing costs
  3. 1,000 ⇒ 300 will be hired = 300 x $20 = $6,000 hiring costs
  4. 1,000 ⇒ no one will be fired or hired

total firing and hiring costs = $500 + $1,000 + $6,000 = $7,500

When a firm pursues a chase strategy, it means that they are following the quantity demanded which is set by the market. They only follow the demand, they do not attempt to increase or decrease it.

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Credit sales are recorded by crediting an accounts receivable.
Anna35 [415]
The answer to the sentence above is false based on the transaction above. Account Receiveable is an asset account which has "debit" as its natural balance. Recording credit sales will increase the account receivable balance and sales balance, thus an increase in account receivable balance occurs on the debit side.
8 0
3 years ago
What type of risk assessment uses descriptive categories to express asset criticality, risk exposure (likelihood), and risk impa
Sergeeva-Olga [200]

Answer: qualitative

Explanation:

Risk assessment is used in identifying hazards which are likely to result in harm and then determining the appropriate methods to remove such hazard or curtail it.

The type of risk assessment uses descriptive categories to express asset criticality, risk exposure (likelihood), and risk impact is the qualitative risk assessment.

5 0
3 years ago
You just received an offer in the mail to transfer your $5,000 balance from your current credit card, which charges an annual ra
NARA [144]

Answer:

number of payment is 3.05 payment

so correct option is b 3.05 payments

Explanation:

balance = $5000

annual rate r1 = 18.7 % = \frac{0.187}{12} = 0.01558

credit card charging r2 = 5.9% = \frac{0.059}{12} = 0.004917

payments P = $250  month

to find out

How many fewer payments will you have to make to pay off this debt if you transfer the balance to the new card

solution

we first find time t both rate by total balance formula that is

balance =  P * \frac{1-(1+r)^{-t}}{r}    ...........................1

here P is payment and t is time and r is rate

put here all value and find t for r1

balance =  P * \frac{1-(1+r)^{-t}}{r}  

5000 =  250 * \frac{1-(1+0.01558)^{-t}}{0.01558}

take log both side

log 0.6884 = log 1 - log(1+0.01558)^{t}    

t = 24.1519        .................2

and now put here all value and find t for r2

balance =  P * \frac{1-(1+r)^{-t}}{r}  

5000 =  250 * \frac{1-(1+0.00492)^{-t}}{0.00492}

take log both side

log 0.9016 = log 1 - log(1+0.00492)^{t}  

t = 21.1055         .....................3

so by equation 2 and 3

so no of payment will be 24.1519 - 21.1055

so number of payment is 3.05 payment

so correct option is b 3.05 payments

7 0
3 years ago
The Austin Land Company sold land for $85,000 in cash. The land was originally purchased for $65,000. At the time of the sale, $
kompoz [17]

Answer:

The sale implies:

Reduction in asset-land by $65000

An increase in asset cash by $85000

An increase share capital by $20,000

The payment of mortgage means:

decrease in liability by $40,000

decrease in asset by $40,000

Explanation:

First of all, the sale of the land means a decrease in a non-current asset, land by $65,000 as well as an increase in a current asset cash by $85,000 while balancing amount of $20,000, gain on sale of land would increase  retained earnings and ultimately share capital equity.

The payoff of loan of $40,000 reduces long-term liability mortgage by $40,000 and also reduces current asset , cash by the same amount, in other words asset and liability reduce by $40,000 simultaneously.

6 0
3 years ago
Support systems on a service blueprint include all of the following except the _____ .
Gre4nikov [31]

Answer:

server

Explanation:

A service blueprint is a diagram or an illustration of the service process in an organization. It visualizes a company's service process to identify improvement areas to provide a better customer experience.

A service blueprint illustrates the relationship between various service components that interact directly or indirectly with customers. They include customer facings and back-office employees and digital interfaces such as the company website.

3 0
3 years ago
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