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3 years ago

An increase price caused no change in quantity demanded. Thus, demand must be

Business

1 answer:

NNADVOKAT [17]3 years ago

8 0

Answer:

Perfectly inelastic

Explanation:

A demand is perfectly inelastic when quantity demanded does not change in response to a change in price.

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Helena Furnishings wants to sharply reduce its cash conversion cycle. Which of the following steps would reduce its cash convers

Lelechka [254]

Answer:

Option B. The company reduces its days sales outstanding (DSO).

Explanation:

As we know that:

Cash conversion Cycle = Receivable days + Inventory days - Payable days

Option A says that the increasing inventory without increasing sales will reduce the cash conversion then it is incorrect because increase in inventory keeping sales constant, increases the inventory days which will increase the cash conversion cycle. So the statement is incorrect.

Option B says that the reduction in Days Sales Outstanding which is also known as receivable days will result in decrease in cash conversion cycle then it is correct because we can see from the equation that reduction in receivable days will reduce the cash conversion cycle.

Option C says that the paying bills sonner by keeping the sales same will decreases the cash conversion cycle then it is again incorrect because reduction in payable days increases the cash conversion cycle.

Option D and E are incorrect because option B is the only statement that is correct.

7 0

3 years ago

What are the importance of gross margin pricing?

JulijaS [17]

Answer:

Companies use gross margin to measure how their production costs relate to their revenues. For example, if a company's gross margin is falling, it may strive to slash labor costs or source cheaper suppliers of materials. Alternatively, it may decide to increase prices, as a revenue increasing measure.

3 0

3 years ago

Read 2 more answers

Omega.com sold 25 jet skis for $7000.which cost$5000 The entry to record the sale would be

Hoochie [10]

If the company sold 25 jet skis at $7,000 each the total value of the sale is $175,000. The correct way to record this transaction would depend on how the sale was paid for.

If the jet skis were paid for with cash the entry is going to be a debit to Cash for $175,000 and a credit to Sales for $175,000. If they were sold on account the entry is going to be a debit to Accounts Receivable for $175,000 and a credit to Sales for $175,000.

5 0

3 years ago

Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter HD

viktelen [127]

Answer:

Explanation:

1 2 3 4 5

sales 15500 7420 8260 10130 19220

Inventory 2200

Ending

inventory 2968 3304 4052 7688

Production 16,268 7756 9008 13766

Total production = 46,798

Workings

Ending inventory

Quarter 1 =40%*7420

Quarter 2 40%*8260= 3304

Quarter 3 40%*10130=4052

Quarter 4 40%* 19220=7688

Production formula

Quarterly sales + ending inventory - opening inventory

Please note that the ending inventory of a quarter is the opening inventory of the next quarter

3 0

3 years ago

An investment project provides cash inflows of $1,350 per year for eight years. a. What is the project payback period if the ini

sleet_krkn [62]

Answer:

It will take 3 years and 55 days to cover the initial investment.

Explanation:

Giving the following information:

Cash flows= $1,350

Initial investment= $4,250

The payback period is the time required to cover the initial investment:

Year 1= 1,350 - 4,250= -2,900

Year 2= 1,350 - 2,900= -1,550

Year 3= 1,350 - 1,550= -200

Year 4= 1,350 - 200= 1,150

To be more accurate:

(200 / 1,350)= 0.15*365= 55 days

It will take 3 years and 55 days to cover the initial investment.

6 0

3 years ago