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Leni [432]
2 years ago
14

A new project would require an immediate increase in raw materials in the amount of $12,000. The firm expects that accounts paya

ble will automatically increase $8,500. How much must the firm expect its investment in net working capital to change if they accept this project
Business
1 answer:
Mariulka [41]2 years ago
6 0

Answer: Increase by $3,500

Explanation:

The Net Working Capital of a company is calculated by subtracting Current liabilities from current assets.

Raw materials are current assets and Accounts Payable are current liabilities.

The Net working capital resulting from accepting this project is;

= 12,000 - 8,500

= $3,500

Net Working capital investment would increase by $3,500.

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The total sales-mix variance in terms of the contribution margin is $2,60,000 favorable.

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A marketing company wants to estimate the proportion of consumers in a certain region of the country who would react favorably t
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The closest to the minimum number of consumers needed to obtain the estimate with the desired precision is (b) 271

Explanation:

When the prior estimate of population proportion is not given , then the formula to find the sample size is given by :-

n=0.25(\frac{z^{*} }{E} )^{2}

where E = Margin of error.

z* = Critical z-value.

As per given , we have

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Put all values in the formula , we get

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