Answer:
Explanation:
Inventory turnover = Sales / inventory
Inventory turnover = 28,000,000 / 6,100,000
Inventory turnover = 4.59
Day's sales inventory = 365 / Inventory turnover
Day's sales inventory = 365 / 4.59
Day's sales inventory = 79.52 days
Answer:
c. cease production immediately, because it is incurring a loss.
Explanation:
When a business engages in production it looks to make profit. That is for the production price to be higher than cost incurred in producing the good.
However when the price is lower than the average variable cost as is indicated in the scenario then the firm needs to shut down production in the short term.
Factors that will adversely affect a firm in the short term are price, average total cost, and average variable cost.
Once price is less than average total cost or average variable cost it is better to stop production.
As they are incurring an economic loss
<span>The U.S. has an absolute advantage in producing toys, whereas China has a comparative advantage in producing toys. China does not need Adam Smith's absolute advantage of greater productive efficiency in toys, rather it needs David Ricardo's comparative advantage.</span>
Answer: 10.68%
Explanation:
The partner return on equity will be calculated by using the formula given as:
= (Partner Net income/Average Partner equity) × 100
The Partner’s Net income is $6250
Average partner equity = (Opening partner equity + Closing partner equity) × 100
= ($55,000 + $62,000) / 2
= $117,000 / 2
= $58500
The Partner return on equity will then be:
= 6250 / 58500 × 100.
= 10.68%