A. The market value of the equity if the asset is 7100 is
7100 - 5800 = 1300
b. The market value of the equity if the asset is 5200 is
5200 - 5800 = -600
A negative equity means that the company is in debt.<span />
Answer:
The current and quick ratios both increase.
Explanation:
As we know that
The current and the quick ratio represents the liquidity position of the company whether the company is able to pay its short term obligations or debt for the twelve months or not
It can be check by determining the current ratio and the quick ratio which is
Current ratio = Current assets ÷ current liabilities
And, the quick ratio is
Quick ratio = (Current assets - inventory) ÷ current liabilities
It is always expressed in the times
So for improving the financial position we have to indicate the current and quick ratio
Answer and Explanation:
The computation of total avoidable costs is shown below:-
<u>Particulars Keep old machine Buy New machine</u>
Opportunity cost of
buying the old
machine $44,000
Purchase amount $117,000
Operating expenses $208,000
($52,000 × 4 years)
Operating expenses
($7,000 × 4 years) $28,000
Total avoidable costs $252,000 $145,000
b. The new machine cost is lower to the lower one so it can be replaced.
Answer:
Procurement
Explanation:
The process of "procurement" refers to purchasing the goods and services that will be used in the company's business. This gives the company the ability to choose where and from whom they will buy their supplies. This allows "fairness" and promotes<em> competition. </em>
The act of buying lumber and raw materials by the furniture manufacturer, including its machines, equipment, manufacturing supplies and office supplies belong to the process of procurement. Companies set their <u>own procurement policies</u> in order to ensure that<em> it aligns with the interest of the public.</em>
So, this explains the answer.
With sales of 9,000 units, contribution margin per unit of $32 and fixed costs total of $120,000, Lance's profit is $168,000.
<h3><u>
What is contribution margin?</u></h3>
- A gross or per-unit basis might be used to express the contribution margin.
- It indicates the additional revenue made for each product or unit sold after the variable element of the business's costs have been subtracted.
- The selling price per unit less the variable cost per unit is the contribution margin.
- The metric, also known as dollar contribution per unit, shows how a specific product affects the company's overall earnings.
Contribution margin offers a means of demonstrating the potential for profit of a specific product being offered by a business and displays the percentage of sales that goes toward paying the business' fixed costs. Profit is the amount that remains after fixed expenses have been paid.
Number of units sold = 9,000.
Contribution margin per unit = $32.
Expenses = $32 × 9000 = $2,88,000.
Profit = $2,88,000 - $120,000 = $1,68,000.
Know more about contribution margin with the help of the given link:
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