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4 years ago

What is the ending inventory for period 8 when the MPS is 0 units?

Business

1 answer:

KatRina [158]4 years ago

6 0

Answer:

Ending inventory = 64 units

Explanation:

Given:

Ending inventory for period 7 = 89 units

Forecast demand for period 7 = 120 units

Forecast demand for period 8 = 20 units

Customer order for period 8 = 25 units

MPS = 0 units

Computation:

Ending inventory = Ending inventory for last period + MPS - maximum from (Forecast demand for Current period ,Customer order for current period)

Ending inventory = 89 units + 0 - maximum from (20 , 25)

Ending inventory = 89 units -25 units

Ending inventory = 64 units

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A rightward shift in aggragate Demand (for US) can be caused by which of the following Increase in consumer waelth, increase in

Rudiy27

Answer:

Option A Increase in consumer wealth

Explanation:

The reason is that when the consumer wealth increases his purchasing power increases which enables him to opt to items which greater in value and also that the person starts satisfying his personal needs and wants which means that the person is spending more and if the person is spending more then the aggregate demand of the product and services will increase. Furthermore the increase in taxes, costs and value of US dollar decreases the demand because it increases the prices of the product and increase in price of the product or services decreases the demand of the product both in the domestic and international market. So the right option is A.

5 0

3 years ago

National Chemical Company manufactures a chemical compound that is sold for $55 per gallon. A new variant of the chemical has be

shepuryov [24]

Answer:

National Chemical Company

New Variant of a Chemical Compound:

The effect on total profit if National produces the new compound variant is that total profit increases by $33,200

Explanation:

a) Data:

Selling price of old chemical = $55

Selling price of fined chemical = $78

Initial demand for the new compound = 8,300 gallons

Refining costs for the new compound = $157,700

b) Calculations:

Profit from new fined chemical = $23 ($78 - 55)

Differential Sales revenue = $190,900 ($23 x 8,300)

Differential processing costs $157,700

Effect on total profit = $33,200

c) Refining a chemical always add some value to the chemical. The additional value added is the differential sales revenue that National generates minus the additional processing costs involved to get the chemical refined.

8 0

3 years ago

Rather than purchase new equipment, the marketing manager argues that the company's marketing strategy should be changed. Rather

Kitty [74]

Answer:

Break-even point (dollars)= $1,104,000

Explanation:

Giving the following information:

The company's new monthly fixed expenses would be $331,200.

Selling price= 24

Unitary variable cost= (772,800/46,000)= 16.8 per unit

With this information we can calculate the break-even point both in units and dollars:

Break-even point= fixed costs/ contribution margin

Break-even point= 331,200/ (24 - 16.8)= 46,000 units

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 331,200/ (7.2/24)= $1,104,000

5 0

3 years ago

Please prepare the multi-step income statement, the statement of stockholders' equity and the classified balance sheet.

goldenfox [79]

Answer:

Operating Income = $53,000

Net Income = $39,000

Ending balance of common stock = $300,000

Ending balance of retained earnings = $95,000

Ending total stockholders' equity = $395,000

Total current assets = $198,000

Net long-term assets = $265,000

Total long-term assets = $285,000

Total assets = $463,000

Total liabilities = 68,000

Explanation:

a. Multi-step Income Statement

Multi-step Income Statement put each revenues and expenditures items into different categories to show gross profit and net income. This can be prepared as follows:

Multi-step Income Statement

For the year ended

Details $

Sales Revenue 545,000

Sales Discount (45,000)

Net Sales Revenue 500,000

Cost of Goods Sold (400,000)

Gross profit 100,000

Operating expenses:

Rent Expense (12,000)

Depreciation Expense (10,000)

Salaries Expenses (25,000)

Operating Income 53,000

Non-operating expenses:

Interest Expense (6,000)

Income before tax 47,000

Income Tax Expense (8,000)

Net income 39,000

Dividend paid (4,000)

Retained earning for the year 35,000

b. Changes in Retained Earnings

Details $ 

Beginning retained earnings 60,000

Retained earning for the year 35,000

Ending retained earnings 95,000

c. Movement in Common Stock

Details $ 

Beginning balance of common stock 250,000

Additional shares issued 50,000

Ending balance of common stock  300,000 

c. Statement of stockholders' equity

Details $ 

Beginning balance of common stock 250,000

Additional shares issued 50,000

Ending balance of common stock 300,000

Ending retained earnings 95,000

Ending total stockholders' equity 395,000

d. Classified Balance Sheet

Classified balance sheet shows each of the componets of assets, liabilities and equity. This can be prepared as follows:

Classified Balance Sheet

As at the year ended

Details $ $ 

Long-Term Assets

Buildings 65,000

Equipment 220,000

Total Long-Term Assets 285,000

Accumulated Depreciation 20,000

Net Long-Term Assets 265,000

Current Assets

Cash 12,000

Accounts Receivable 150,000

Supplies 36,000

Total Current Assets 198,000

Total Assets 463,000

Financed by:

Ending total stockholders' equity 395,000

Current Liability

Accounts Payable 28,000

Long-Term Liability

Notes Payable (Due in 2years) 40,000

Total Liabilities 68,000

Total Equity $ Liabilities  463,000 

Conclusion

As both the Total Assets and Total Equity and Liabilities are each equal to $463,000, it implies the financial statement is accurately prepared since both must always be equal.

7 0

4 years ago

Which of the following statements is FALSE?

Illusion [34]

Answer:C. Smaller stock have lower volatility than larger stock.

Explanation:

Volatility refers to the prones of a stock price to changes in market conditions. The higher the impact of changes in market conditions on a stock the higher the volatility level and the lower the impact of changes in market conditions on a stock price the lower the volatility. However the size of a stock does not necessarily determine the level of his volatility, a

stock may be small but still have a large volatility level and stock may be large and have low volatility level.

6 0

3 years ago