Answer: B- Purchase of the company's own stock
Explanation:
Stock repurchases is a transactions that causes a negative cash flow from financing activities
They don’t use a circular flow chart because it don’t give a precise answer to what they are answering.
Answer:
600 Units
Explanation:
Given:
Opening balance of inventory = 0 units
Ending balance of the month = 800 units
Finished units during the month = 1,200 units
Completed work in progress = 75% = 0.75
Ending work in process inventory = ?
Computation of ending work in process inventory:
Ending work in process inventory = Ending balance of the month × Completed work in progress
= 800 × 0.75
= 600 units
Answer and Explanation:
The computation is shown below;
The Variable cost is
= 55% of $4
=$2.2
Now
Contribution margin per unit
= Sale - Variable cost
= $4 - $2.2
= $1.8 per unit
a.Breakeven point is
= Fixed cost ÷ Contribution margin
In units
= ($702,000 ÷ $1.8)
= 390,000 units
in dollars = (390,000 × $4)
= $1,560,000
b.Margin of safety = Total sales - Breakeven sales
In dollars = ($2,000,000 - $1,560,000)
= $440,000
Margin of safety ratio =Margin of safety ÷ Total sales
= ($440,000 ÷ $2,000,000)
= 22%
If a company is regularly keeping the wages low, it will decrease the Employee’s job satisfaction and Employees will become demoralized. The company cannot expect a high turn-over due to the low performance of employees.
However, the company can keep costs to a minimum.
Hence the only short-term benefit for a company to regularly keeping wages low shall be the Costs reduction.
Hence the correct answer is :
D. The company can keep costs to a minimum.