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3 years ago

The costs and revenues associated with two alternatives are listed below:

Business

1 answer:

Fudgin [204]3 years ago

6 0

Answer:

The correct option is A,alternative 2 because it has a higher profit

Explanation:

The profit analysis of both alternatives is done below:

Alternative 1 Alternative 2

Projected revenue $100,000 $125,000

Costs:

unit level costs $20,000 $30,000

Batch-level costs $20,000 $25,000

Product-level costs $15,000 $15,000

facility-level costs $10,000 $10,000

total costs $65,000 $80,000

Profit(revenue-total costs) $35,000 $45,000

The correct answer is option A,as option 2 has a higher profit of $45,000 compared to alternative 1 of $35,000

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Select the correct answer

Amiraneli [1.4K]

I believe the answer is A

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3 years ago

The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the indu

yan [13]

Answer:

4.50%

Explanation:

Note:<em> Question is incomplete but very similar one is attached as picture below</em>

Current ROE = Net Income / Equity = $21,000 / $280,000 = 7.50%

Current Inventory = $210,000

Target Current ratio = 2.70

1. Current assets at target Current ratio = Current Liabilities * Target current ratio = $70000 * 2.70 = $189,000

2. Reduction in Inventories = Present Current assets - Current assets under target current ratio

Reduction in Inventories = $14000 + $70000 + $210000 - $189000

Reduction in Inventories = $105000

3. Reduction on common equity using sale of inventory = Current Equity - reduction

Reduction on common equity using sale of inventory = $280,000 - $105,000

Reduction on common equity using sale of inventory = $175,000

4. Change in ROE = New ROE - Current ROE

Change in ROE = [21000 / 175000] - 7.50%

Change in ROE = 12% - 7.50%

Change in ROE = 4.50%

4 0

3 years ago

Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would b

Arlecino [84]

Answer: Threat

Explanation:

The threat is one of the important factor in the SWOT analysis that is basically used for analyzing the main causes of the damages in an organization, products and the venture. The threats can be defined as external or in a negative way.

The SWOT is stand for the strengths, weaknesses, opportunities, and the threats and these are the techniques for evaluating the four main aspects of the business.

According to the given question, the implementation of the new government regulations are reducing the availability of the raw materials and this is known as the external organization threat in the given SWOT analysis.

Therefore, Threat is the correct answer.

3 0

3 years ago

David��s salary totals $79,000 per year. he can expect to pay federal income tax at a rate of 23.60%. how much money will david

Slav-nsk [51]

C. $18,644 is the correst answer. Hope this helped

8 0

3 years ago

Read 2 more answers

ndicate whether each of the following costs should be classified as a product cost or as an SG&A cost in accordance with GAA

Leokris [45]

Answer:

Explanation:

The product cost is a combination of direct material cost, direct labor cost, and the manufacturing overhead cost. The manufacturing overhead cost is an indirect cost which is related to the factory expenses.

And, the SG&A cost is a sales, general ,and admin costs incurred to advertise the company's products so that it can accomplish its sales targets which can build a good reputation in the market.

So, the categorization is shown below:

Direct materials used in a manufacturing company. = Product cost

Indirect materials used in a manufacturing company. = Product cost

Salaries of employees working in the accounting department. = sales, general ,and admin costs

Commissions paid to sales staff. = sales, general ,and admin costs

Interest on the mortgage for the company’s corporate headquarters. = sales, general ,and admin costs

Indirect labor used to manufacture inventory. = Product cost

Attorney’s fees paid to protect the company from frivolous law suits. = sales, general ,and admin costs

Research and development costs incurred to create new drugs for a pharmaceutical company. = sales, general ,and admin costs

The cost of secretarial supplies used in a doctor’s office. = sales, general ,and admin costs

Depreciation on the office furniture of the company president. = sales, general ,and admin costs

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3 years ago