Answer:
Industrial Market
Explanation:
In the industrial market, one business acts as a consumer and the other business acts as seller. In this market the purchaser is also the business and the seller is also the business. The consumer business purchases raw materials that is used in manufacturing the end products.
Answer:
Explanation:
Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:
In the simplest form, the net income = Total revenue - total expenses
= Sales revenue - the cost of good sold - insurance expense - depreciation expense - interest expense - income tax expense - salaries and wages expense
= $5,000 - $1,040 - $210 - $415 - $600 - $190 - $750
= $1,795
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
Answer:
Each product will be allocated with 38.30 dollars of manufacturing overhead as both takes 0.81 DLH
Explanation:
To calcualte the overhead rate we need to distribute the expected cost over the expected cost driver, in this case, labor hours:
(39,000 + 8,000) x 0.81 DLH = 38,070 labor hous
$1,800,000 overhead / 38,070 DLH = 47,281323877
the overhead per hour is $47.28
overhead per product:
47,281323877 x 0.81 = 38,29787234 = <u><em>38.30</em></u>
The maximum debt to capital ratio (measured as debt/total invested capital) the firm can use is 44.29%.
<h3>
Maximum debt to capital
ratio:</h3>
TIE:
TIE = EBIT / Interest
EBIT =$450,000 -$355,000
EBIT= $95,000
Interest:
4 = $95,000 / Interest
Interest = $95,000 / 4 = $23,750.
Amount of debt:
Amount of debt=$23,750 / .075
Amount of debt= $316.666.70
Debt Ratio:
Debt ratio= $316,666.70 / 715,000 ×100
Debt ratio=44.289%
Debt ratio=44.29%(Approximately)
Inconclusion the maximum debt to capital ratio (measured as debt/total invested capital) the firm can use is 44.29%.
Learn more about debt to capital ratio here:brainly.com/question/16820767
Answer:
detects potential problems early to prevent their occurrence.
Explanation:
Six Sigma is a quality business management strategy which helps business organizations to improve the quality of processes, products and services by discovering and eliminating defects, variations or errors. It is a strategic business concept that was developed in 1986 by Motorola.
This ultimately implies that, the six sigma approach to quality control detects potential problems early to prevent their occurrence.
Under the six sigma approach, any process that doesn't provide customer satisfaction or causes challenges in an organisation's process should be eliminated from the system in order to produce quality products and services. It allows only 3.4 defective features for every million opportunities and as such expects processes to be defect free 99.99966 percent of the time.
<em>Generally, there are two (2) main methods of achieving the six sigma approach;</em>
<em>1. DMAIC: define, measure, analyze, improve and control.</em>
<em>2. DMADV: define, measure, analyze, design and verify. </em>