Answer: Option B
Explanation: In simple words, economic growth refers to a situation when an economy produces more output in the current year as compared to the previous year.
The economic growth could happen from a number of factors. However in the given case, the growth in output is happening without any increase in input. This can only occur when the technology has been improved or the labor productivity has been increased.
Only under the above instances one can have more output than the previous level without increasing the input.
Hence from the above we can conclude that the correct option is B.
payable = money owed by a company to its creditors
receivable = money owed to a company by its debtors.
Answer:
(a) Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
Cost of Inventory 4,900
Cost of goods sold 13850
(b) Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
Cost of Inventory 6,300
Cost of goods sold 12450
(c) Compute the gross margin for each method.
Sales = 36,000
FIFO
Gross profit Margin = (36000 - 13850) / 36000 = 61.5%
Gross profit Margin = (36000 - 12450) / 36000 = 65.4%
Explanation:
The working is attached in an MS Excel file with this answer. Please find it.
Answer:
The correct answer is letter "C": I, II and III.
Explanation:
Portfolio Turnover estimates the fund's percentage of assets that its manager buys and sells for over one year. <em>Portfolio turnover can affect the return of the portfolio, as transaction costs such as commissions and fees are drawn from the assets of the fund</em>. Usually, fund managers who trade securities aggressively try to increase their commission.
<em>Higher portfolio turnover rates imply incurring in higher capital gains translated in higher returns overall but come along with higher taxes that must be paid equally among investors. Both benefits and liabilities are allocated evenly among entrepreneurs into the investment.</em>
Solution :
a). At the break even units, the total contribution margin = fixed expenses
We know that : (Selling price - variable cost) x units sold = fixed expenses
i.e. (20-14)x = 225,000
6x = 225,000
x = 37,500
Therefore, the number of units sold, x = 37,500
So, the break even analysis = 37,500 x 20
= 750,000
b).
= 30%
The Breakeven sales =
= 750,000
c).
= 37.5%
d). Units needed :
units
Therefore, the sales required = 62,500 x 20
= 125,000