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3 years ago

If a customer credit score is within 2 points of the minimum of what the business will accept, should the business extend credit

Business

1 answer:

Eduardwww [97]3 years ago

5 0

Answer:

Explanation:

I wouldn't.

The business has drawn a rigid line in the sand. It has to maintain its standard. I might try and make a deal with the customer. "Come up with x% for a down payment."

If the score is high (like over 750), I would likely stretch my standard. 750 is a pretty high score and if you have that kind of a number, you know how to pay things back.

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Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has bud

beks73 [17]

Answer:

Results are below.

Explanation:

First, we need to calculate the number of processing hours:

Processing hours= (0.25*3,000) + (0.1*6,000) + (0.3*3,500)

Processing hours= 750 + 600 + 1,050

Processing hours= 2,400

Now, we can calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 207,000 / 2,400

Predetermined manufacturing overhead rate=$86.25 per processing hour

To allocate overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Tortilla chips= 86.25*75= 64,687.5

Potato chips= 600*86.25= 51,750

Pretzels= 86.25*1,050= 90,562.5

Finally, the unitary cost:

Tortilla chips= 64,687.5 / 3,000= $21.56

Potato chips= 51,750 / 6,000= $8.63

Pretzels= 90,562.5 / 3,500= $25.88

8 0

3 years ago

Mike Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of retur

Tanya [424]

Answer:

The answer is $7,900

Explanation:

Formula of Residual Income=Net Operating Income-(minimum required rate of return*average operating assets)

Residual income (RI)=$143,700-($970,000*14%)

RI=$7,900

Further we can alsocalculate

Return on investment (ROI)=$143,700/$970,000=14.81%

8 0

3 years ago

Read 2 more answers

Perfect substitutes A. always have indifference curves with slopes of minus1. B. have horizontal indifference curves. C. always

torisob [31]

Answer:

Option (D) is correct.

Explanation:

Perfect substitute goods are the goods which can be used in place of each other.

Perfect substitutes refers to the goods which are having identical characterstics, features and provide the exactly same level of satisfaction.

The marginal rate of substitution for these perfect substitute goods remains constant which means that the trading of one good for the another good is at a fixed rate.

3 0

3 years ago

Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are $1.95 per unit, fi

pashok25 [27]

Answer:

Explanation:

cost of making in-house

Variable cost = 1.95 * 65,000 = 126,750

Related fixed cost = 75,000

Unavoidable fixed cost= 62,000

Total cost of manufacturing = 263,750.

cost of buying

Unit cost = 3.25*65,000 = 211,250

Unavoidable fixed cost = 62,000

Total cost of buying = 273,250 .

Cost of buying is higher than the cost of making

Incremental cost buying = 273,250-263,250 = 9,500

Recommendation

Gilberto should manufacture in - house instead of buying.

4 0

3 years ago

A company has net income of $865,000; its weighted-average common shares outstanding are 173,000. Its dividend per share is $1.3

Elenna [48]

Answer:

c. 21.00

Explanation:

The formula to compute the price earning ratio is shown below:

Price-earnings ratio = (Market price per share) ÷ (Earning per share)

where,

Market price per share is $105

And, the earning per share would be

= Net income ÷ weighted-average common shares outstanding

= $865,000 ÷ 173,000 shares

= $5

Now put these values to the above formula

So, the per share would equal to

= $105 ÷ $5

= 21

7 0

3 years ago