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Natali [406]
3 years ago
6

A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 15,000 uni

ts of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?
Business
1 answer:
Leni [432]3 years ago
4 0

Answer:

The capacity utilization rate for month of October is 72.83%.

Explanation:

FORMULA FOR CALCULATING CAPACITY UTILIZATION RATE -

= ACTUAL CAPACITY / MOST EFFICIENT CAPACITY

GIVEN INFORMATION -

Actual capacity for month of October - $10,925

Most efficient capacity - $15,000

Putting these values in formula -

= $10,925 / $15,000

= .7283

Now multiplying it by 100 to convert it in to percentage

= .7283 x 100

= 72.83%

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Answer:

The stockholder's equity will be increased by $500

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3 years ago
Your parents put $300 into an account paying 11 percent interest for you when you were ten. Ten years later they tell you that y
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Answer:

The balance in the account = $851.8

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.

This implies compounding the initial amount invested ($300) at the given interest rate(11%) for 10 years.This will be done as follows:

<em />

FV = PV × (1+r)^(n)

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3 0
3 years ago
• what are the four characteristics of capital acquisition and repayment cycle that significantly influence the audit?
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A project with a negative NPV should not be chosen because it isn't profitable. NPV is calculated by taking the present value of all cash flows over the life of a project. Then, the present value of cash flows is subtracted from the investment's initial investment

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