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3 years ago

How much should be in the reserve for fixed expenses?

Business

1 answer:

olchik [2.2K]3 years ago

8 0

Answer:

The short answer is that your cash reserve should be sufficient for you to feel comfortable running your business. Some experts recommend having three months of expenses. Others recommend six months. I would suggest speaking to your CPA or financial adviser to determine the right number for your business.

Explanation:

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Cari Chair Company manufactures rocking chairs. The estimated number of rocking chair sales for each of the last three months of

tester [92]

Answer:

Production December= 15,000

Explanation:

Giving the following information:

Month Unit Sales

October 10,000

November 14,000

December 15,000

Finished goods inventory at the end of November was 4,000 units.

To calculate the production required for December, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 15,000 + 16,000*0.25 - 4,000

Production= 15,000

4 0

3 years ago

What will happen in the gasoline market now if buyers expect higher gasoline prices in the near future?

Lerok [7]

D.) i had it right on my test

8 0

3 years ago

The price elasticity of demand for a good is likely to be less elastic __________.

mariarad [96]

Answer:

if a change in the price of the good brings about a much smaller change in the quantity demanded for the good.

Explanation:

The price elasticity of demand is a measure of the change in the demand for a good in relation to a change in the price of the same good. Mathematically, the price elasticity of demand for a product is represented as:

Price elasticity = change in the quantity demanded/change in price

The value of price elasticity of demand ranges from 0 to infinity. The price elasticity of demand is

relatively inelastic when the value is less than 1,
unitary elastic when it is equal to 1,
relatively elastic when it is greater than 1,
perfectly inelastic when it is equal to 0, and
perfectly elastic when the value is infinity.

Less elastic price elasticity of demand is equivalent to relatively inelastic price elasticity. This thus means that the price elasticity of demand is less than 1; a percentage change in the price of the good brings about a disproportionately smaller percentage change in the quantity demanded for the good.

4 0

3 years ago

Which of the following statements is CORRECT? a. The present value of a 3-year, $150 annuity due will exceed the present value o

lorasvet [3.4K]

Answer:

Statement a. is correct.

Explanation:

The effective annual rate is always higher than the nominal interest rate, as the formula is clear for any number of periods, for any interest rate:

Effective Annual Rate of return = $(1 + \frac{i}{n})^n - 1$

Further if we calculate the present value of annuity due and ordinary annuity assuming 6 % interest rate, then:

Present value of annuity due =

$(1 + 0.06) \times 150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )$

= 1.06 $\times$ $400.95

= $425.0089

Present value of ordinary annuity = $150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )$

= $150 $\times$ 2.6730

= $400.95

Therefore, value of annuity due is more than value of ordinary annuity.

Statement a. is correct.

5 0

3 years ago

In terms of GNI PPP, excluding Singapore, the wealthiest nations of Southeast Asia are

shutvik [7]

The wealthiest nations of Southeast Asia, excluding Singapore (which is one of the wealthiest countries in the world) are Thailand and Malaysia, with Malaysia being in the 130th position according to GNI (Gross national Income) and Thailand in the 120th position (the higher the number the bigger the GNI). After this it's Indonesia in the 72nd place.

7 0

3 years ago