Answer:
Explanation:
Base on the scenario been described in the question, we use the following method to solve the question
d = 75 lbs/day 200 days per year
D= 15,000 lb/year H= $3/lb/year S= $16/order
Answer:
While taking a capital budgeting decision of source of fund, or the capital project to be chosen, we sometimes use Payback Period
It is defined as the tenure in which the cash flows will realize the cost of project, that is the period in which the entire cost will be paid back.
This provides the information regarding the time after which the project will be profitable, or the time at which it will reach break even.
The payback uses the criteria that if the payback period calculated is less than life of project it shall be accepted, in case it is equal to life of project then there will be no profit no loss, and in case payback is higher than life of project then there will be loss.
Answer:
3.6
Explanation:
The receivables turnover for the year is calculated as;
= Net sales(credit sales) ÷ Average accounts receivables
Average account receivables
= ($200,000 + $220,000) ÷ 2
= $210,000
Therefore, Receivables turnover
= $750,000 ÷ $210,000
= 3.6
Answer:
Fiduciary Duty
1. The two main duties of company directors and top managers are the duty of care and the fiduciary duty of loyalty. The fiduciary duty of loyalty requires that managers act in the best economic interest of the company without engaging in activities that give rise to personal economic conflict.
2. Gaffney did not act ethically in this case. He did not avoid conflict of interest as an officer of Chelsea Corporation.
3. Gaffney and his partners clearly breached their fiduciary duty of loyalty. Within the two years of their employment at Ideal Tape Company, they acted in their personal interest. They were using company resources to conduct researches, setting up a rival company to compete with Ideal.
Explanation:
When a fiduciary duty of loyalty is breached, the corporation can damages. The court will usually base the damages on the salaries of the officer who breached his fiduciary duty within the application period.
Answer:
rise, fall, rise, fall, fall, exchange rate
Explanation:
When there is a change in the level of price it will cause the real value to change as well. This is due to the fact that real value is basically relative price i.e., nominal value adjusted by inflation.
This rise in price effects the demand for exports, which in return falls due to higher goods rates. And the effect is opposite for imports which would now rise. The combination effect of imports and exports results in the change in the net exports which would also fall due to rise in imports and fall in the exports. Overall, this effect is known as the exchange rate effect.
