Learning Objective 4 - Prepare Financial Statements

Multiple Select Question Select all that apply Which of the following are facility-level activities? Human resource hiring fairs

Olenka [21]

The full question is:

Which of the following are facility-level activities? (select all that apply)

a. Paying factory insurance

b. Setting up factory equipment

c. Arranging for shipping products to a customer

d. Property taxes on plant

Answer:

Paying factory insurance

Property taxes on plant

Explanation:

Facility level activities are defined as those activities that cannot be traced to a particular product, but are carried out to maintain the general operations of a business. They are also called business sustaining activities.

Examples include depreciation, cost of security, cost of maintenance and taxes.

These activities need to be executed seamlessly by the business if they want to maintain efficiency of the production process. For example if machines are not maintained according to maintenance schedule, they can breakdown and cause delays in production.

7 0

3 years ago

Read 2 more answers

The Inferior Goods Co. stock is expected to earn 13% in a recession, 7% in a normal economy, and lose 6% in a booming economy. T

Natalka [10]

Answer:

Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%

Explanation:

Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.

Item Prob Earn

Booming 20% -6%

Normal 55% 7%

Recession 25% 13%

Ok, now let´s calculate the expected rate of return.

$ExpectedReturn=(0.2*(-0.06))+(0.55*0.07)+(0.25*0.13)$

$ExpectedReturn=-0.012+0.039+0.033=0.059$

So the expected rate of return of the stock is 5.90%

Best of luck.

8 0

3 years ago

Discuss any 5 measures introduced by the government to fight poverty in south Africa

Sergeeva-Olga [200]

Answer:

<h3>⭐Programmes that will lessen poverty in the long term include: education and capacity development, land redistribution, promoting economic development and job creation, building houses, providing water, sanitation and electricity, and building schools and clinics.</h3>

5 0

3 years ago

HURRY!!!!!!!!!!!!!!!!!!!!!

max2010maxim [7]

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7 0

3 years ago

Shelhorse Corporation produces and sells a single product. Data concerning that product appear below:

zloy xaker [14]

Answer:

See explanation section.

Explanation:

Requirement 1

At first we have to find the original net income.

Shelhorse Corporation

Contribution format income statement

For the year ended, December 31, 20YY

Sales Revenue (6,100 × $260) = $1,586,000

Less: Variable expense (6,100 × $91) = $555,100

Contribution Margin = $1,030,900

Less: Fixed Expense $366,000

Net Operating Income = $664,900

Requirement 2

As the marketing manager believes that a $23,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales, the new sales volume = 6,100 + 150 = 6,250 and new fixed expense = $366,000 + $23,000 = $389,000

Shelhorse Corporation

Contribution format income statement

For the year ended, December 31, 20YY

Sales Revenue (6,250 × $260) = $1,625,000

Less: Variable expense (6,250 × $91) = $568,750

Contribution Margin = $1,056,250

Less: Fixed Expense = $389,000

Net Operating Income = $667,250

The effect on the company's monthly net operating income of this change = $667,250 - $664,900 = $2,350

5 0

3 years ago