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3 years ago

Simon Company’s year-end balance sheets follow.

Business

1 answer:

klemol [59]3 years ago

3 0

Answer:

The answer is given below;

Explanation:

Days sales in inventory-2017= Average Inventory/Cost of goods sold*365

=(115,000+85,000)/2/(458,674)/365

=(100,000/458,674)*365

=80 days

Days sales inventory 2016= (85,000+56,000)/2/(385,686)*365

=(70,500/385,686)*365

=67 days

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5-7 Short Run versus Long Run A firm sells 1,000 units per week. It charges $70 per unit, the average variable costs are $25, an

irina1246 [14]

a. The firm should carry out the activities.

b.The firm should carry out activities until it is covering the cost.

c. The firm should shut down business activities when the price of the product goes below $25 in short-run.

d. The firm should shut down business activities when the price of the product goes below $65 in long-run.

Further Explanation:

Steps taken by the firm in the long run:

The sales price of the product is $70. The total average cost of the product is $65. The firm can cover all its costs (variable and fixed) and generating a profit of $5. So it should continue to carry out its business operations in the short run.

Steps taken by the firm in the long run:

In the long run, all the costs of the firm are variable. In the current case, the fixed cost is around 60% of the total cost. So the firm should attempt to decrease this cost. If the firm can decrease the total cost, it should carry out the business activities. The firm can continue to carry out the operational activities until it is making the profit and covering all the product cost.

The appropriate price for shutting down the business in the short-run:

The firm can shut down the business in the short-run when the price of the product is below $25.

In the short run, the firm can only control the variable cost. The firm can not control the fixed cost of the product. In the given case, the variable cost of the product is $25. Therefore, the firm should shut down the business when the price of the product goes below the variable cost ($25).

The appropriate price for shutting down the business in the long-run:

The firm can shut down the business in the long-run when the price of the product is below $65.

In the long run, the firm can influence all the costs of the business. It can influence the variable cost and the fixed cost of the business. Therefore, it should cover the total cost of the product. Thus, the firm should shut down the business when the price of the product goes below the total cost ($65).

Learn more:

1. Learn more about the variable costing

brainly.com/question/9203162

2. Learn more about the overhead expenses

brainly.com/question/4612804

3. Learn more about the cost of the product

brainly.com/question/1757741

Answer details:

Grade: Senior School

Subject: Economics

Chapter: Decision making (Short-run & Long-run)

Keywords: Short Run, Long Run, sells, units, week, charges, average variable costs, average costs, long run, Why, price, consider, shutting down the long run.

6 0

4 years ago

Joanna received $60,000 compensation from her employer, the value of her stock in ABC company appreciated by $5,000 during the y

Aleks [24]

Answer:

The amount of Joanna's gross income from these items is $60,000.

Explanation:

Gross income = $60,000

Only the compensation from her employee should be considered here. Since the stock is not sold, its appreciation has no value.

A life insurance proceeds is a tax-free item, therefore not to be included in gross income.

Therefore, The amount of Joanna's gross income from these items is $60,000.

3 0

3 years ago

For greater protection and control, researchers recommend which communication channel when managing conflict with a coworker?

Rudiy27

For greater protection and control, researchers recommend effective communication is the communication channel when managing conflict with a coworker.

effective communication is the procedure of changing thoughts, thoughts, reviews, knowledge, and facts so that the message is acquired and understood with readability and cause. when we communicate successfully, each the sender and receiver experience happy.

The seven C's of effective communication is a list of standards for written and spoken communications to make sure that they're powerful. The seven C's are: clear, correct, complete, concrete, concise, considered and courteous.

when effective communication is powerful, it leaves all events worried satisfied and feeling executed. by way of delivering messages sincerely, there is no room for false impression or alteration of messages, which decreases the ability for conflict.

Verbal conversation makes the conveying of mind faster and simpler and is the most successful methods of communication.

talk actually, maintain a fair tone, and make eye touch. preserve your frame language relaxed and open. Wrap up with a precis and then forestall. Summarize your response after which stop talking, although it leaves a silence within the room.

Learn more about effective communication here:- brainly.com/question/26152499

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6 0

2 years ago

If the economy is at full employment and the Federal Reserve undertakes a policy of increasing the money supply at a constant ra

Korvikt [17]

Think through this one:
--The bottom two answers concern budget deficits or surpluses, but the question doesn't tell you anything about tax revenue vs. government spending. So neither of those answers applies.
--The first answer is impossible because the economy is already at full employment, so employment can't increase
--Inflation is the answer. Increasing the money supply by 6% while output is increasing by only 2% means that prices will rise: the money supply is increasing faster than output.

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3 years ago

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Javier’s employer pays for 43% of his annual health insurance premium. Javier pays the remaining balance by having it deducted f

ASHA 777 [7]

His total annual premium is $6,626.53. Simple mathematics can be used to find the solution for the question. Javier received the deducted by $157.38 paycheck, twice a month throughout the year, so he received 24 deducted paychecks in a year. The sum of all the deducted $157.38 amount throughout the year will be the 57% of Javier's total annual health insurance premium, which is $3,777.12 (24 x $157.38). Therefore, dividing $3,777.12 amount with 57% will resulting in the total value of Javier's annual health insurance premium, which is $6,626.53.

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3 years ago

Read 2 more answers