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faltersainse [42]
3 years ago
6

Compute the dollar amount of working capital that can be reduced at year-end if the ending heel raw material inventory is cut by

half.
Business
1 answer:
erica [24]3 years ago
4 0

Answer:

Note: The full question is attached as picture below

a.                                               No of units Cost per unit   Total Cost

Beginning Inventory      1,200                     $8            $9,600  

Add Purchase                            35,000                  $8            $280,000  

Inventory available for              36,200                  $8             $289,600  

production

Less Inventory transferred to    33,200                 $8             $265,600  

production  (16,600 Pairs*2 Heels)

Ending Inventory                        3,000                  $8             $24,000

b. Working capital will be reduced by: (3,000*$8)/2 = $12,000

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Answer:

<u>$50</u>

<u>Explanation</u>:

In the production function, Q = K0.5L0.5,

K denotes the fixed input in the short run.

First, we calculate the total cost:

Cost of Capital= 25 x $1 = $25

Cost of Labor (for a start 25 workers are used)= 25 x $1 = $25

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Since the price of the solar panels is $100, substrating from the total cost $50 (100-50) we get $50 profit per unit of solar panel.

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3 years ago
Moyas corporation sells a single product for $20 per unit. last year, the company's sales revenue was $300,000 and its net opera
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Net operating income was $24000
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5 0
3 years ago
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Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.80. The required return on an index fund tha
navik [9.2K]

Answer:

3.5%

Explanation:

We will apply asset pricing model to calculate cost of equity (required rate of return). The capital asset pricing model is stated as below:

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Putting all the number together, we have:                          

Cost of equity (Beale) = 5.5% + 1.8 x (9% - 5.5%) = 11.8%

Cost of equity (Foley) = 5.5% + 0.8 x (9% - 5.5%) = 8.3%

Cost of equity (Beale) - Cost of equity (Foley) = 11.8% - 8.3% = 3.5%

<em />

<em>Note: You can also do quick calculation as below:</em>

<em>Cost of equity (Beale) - Cost of equity (Foley) = (Beta of Beale - Bete of Foley) x Market risk premium = (1.8 - 0.8) x (9% - 5.5%) = 3.5%</em>

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3 years ago
You work for an auto manufacturer designing brake systems, but you do not have a dedicat- ed team. Instead, you move from projec
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Answer:

C: Self-directed work groups and virtual teams.

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SDWT (Self-directed work groups and virtual teams) are the groups in offices who possess different skills, and even aren't working on the same project which that they don't have same purpose as you have but still they are in your team.

<em>Since</em>, there is not any dedicated team for my project, I am just moving into other teams for every new project I am going int o self-directed work groups and virtual teams.

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How does a business achieve economies of scale?
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Answer:

Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. ... The larger the business, the more the cost savings.

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