Answer:
C. $(44 comma 000)
Explanation:
The computation of cash flow from investing activity is shown below:
Purchase of equipment for cash ($63,000)
Sale of equipment ($19,000)
Net cash flow from investing activity = - $63,000 + $19,000 = - $44,000
In this activity, the purchase of fixed assets should be negative as it is an outflow of cash whereas the sale of fixed assets should be positive as it is an inflow of cash.
Companies with a high degree of operating leverage (DOL) tend to have a higher percentage of fixed costs, which remain largely constant regardless of production volume, whereas companies with a low degree of operating leverage tend to have cost structures with a higher proportion of variable costs that are closely related to production volume.
A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. Businesses with high operating leverage generate revenues with low variable costs and large gross margins. Operating leverage is used to calculate a company's break-even point, which also helps identify the appropriate selling prices to pay all costs and turn a profit. Businesses with substantial operational leverage must pay a higher monthly amount of fixed costs regardless of whether they sell any units of product. The potential risk from forecasting risk, where a relatively modest inaccuracy in sales forecasting can be compounded into huge errors in cash flow predictions, increases with the level of operating leverage.
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Answer: Description, Date, and Amount.
Answer:
The correct answer is letter "B": the suppliers of raw materials to the firm are unable to maintain quality standards.
Explanation:
Vertical integration takes place when a corporation buys and manages other firms along its supply chain. Vertical integration has two types: backward and forward. In <em>backward </em>vertical integration, a company such as a manufacturer owns companies that supply inputs (for example, raw materials) to ensure quality standards in the manufacturing process of the business. In <em>forward </em>vertical integration, a company owns another company in the supply chain to get closer to the end-customer.
Answer:
Computer Inc should produce and sell 500 charging cords since their contribution margin is the highest, resulting in a gross profit of $8 per unit x 500 units = $4,000. And produce and sell 650 flash drives with a contribution margin of $7 per unit which results in a gross profit = $7 x 650 units = $4,550.
Explanation:
Companies must focus on producing and selling the products that generate them the largest profit.
