Answer:
marginal resource cost is equal to their MRP
Explanation:
A business's profit will maximize when its marginal resource cost equals its marginal revenue product.
Marginal revenue product calculated by multiplying the marginal physical product (MPP) times the marginal revenue (MR), e.g. an additional worker can produce 10 units and each unit costs $10, MRP = 10 x $10 = $100
Marginal resource cost is the cost of using an additional unit of input, e.g. cost of hiring an additional worker.
Answer: Embed company culture
Explanation: Company culture refers to the values and beliefs of an organisation that runs at every level of the operations. Every employee of the organisation have to work by following that company culture.
In the given case, Greg is trying to make a communication channel in the organisation so that every employee can get a sense of the company culture that runs in the workplace.
Hence we can conclude that he is trying to embed the company culture.
Answer:
Number of units to be sold = 150000
So option (b) is correct option
Explanation:
We have given net income = $400000
Unit sales price = $20
Unit variable cost= $12
Total fixed cost $800000
Units must be sold to earn net income of $400,000 =
So number of units to be sold = 150000
So option (b) is correct option
Answer:
True
Explanation:
Small Business face different operational and managerial circumstances compared to <em>established</em> business.
Off-the-shelf accounting software may not be consistent with these circumstances rendering it cumbersome or unsuitable.
Thus a customized accounting software is most suitable to meet the needs for small businesses
To calculate:
1) Net income (loss) for 2010.
2) Operating cash flow
Solution: 1)
Sales = $850000
Less: Cost of goods sold = $610000
Gross profit = $240000
Less: Administrative and selling expenses = $110000
Earning before Interest, Tax and Depreciation = $130000
Less: Depreciation = $140000
Earning before Interest and Tax (EBIT) = ($10000)
Less: Interest expense = $85000
Earning before tax (EBT) = ($95000)
Less: Tax = $0 (as company is having negative EBT or loss hence no tax)
Net loss = $95000
2) Operating cash flow
EBIT + Depreciation - Tax
Wherein, EBIT = Earning before Interest and Tax
($10000) + 140000 - 0 = $130000
