Answer:
B
Explanation:
In this question, we are asked to pick from the options what should serve as the point of action of the firm given the scenario painted in the question;
We proceed as follows;
ATC= 30 $
Marginal revenue(MR)= 40 $
Price(P) =50 $
For efficiency,MC=minimum ATC=30 $
MR =40 > MC=30
For profit maximization, MR =MC
So, firm should raise output ,so that MR falls and becomes equal to MC
So correct option is B.
Answer:
The optimal stocking level for the bakery is cakes 27.
Explanation:
Cost c = $ 7
Selling price p = $ 10
salvage value s = $ 5
Mean = 25
Standard deviation \sigma = 8
Cu = underage cost
= p-c
= $10 - $7
= $3
Co = overage cost
= c-s
= $7 - $5
= $2
P\leq C_{u}/(C_{u}+C_{o})
P\leq3/(3+2)
= 0.6
By using normsinv() function in excel we to find the correct critical value
The Z value for the probability 0.6 is 0.2533
The optimal stocking level is
=\mu +z\sigma
= 25 + 0.2533 *8
= 27.02
The optimal stocking level of bakery is 27.02
Therefore, The optimal stocking level for the bakery is cakes 27.
Answer: A, Debit Cash of $180 and Credit sales of $180.
Explanation:
The above transaction is due to the fact that MacKenzie company is the company that made the sales.
$10,000 for 180days promissory note @ 9%. Since the 9% is an annual rate and the loan is for 180day we calculate thus:
10,000*9/2 = 10,000 * 4.5%=$ 10,450
Answer:
An investment readily convertible to a known amount of cash
Explanation:
Cash equivalents are items usually recognized in the balance sheet along with cash (then names Cash and cash equivalent) that are readily or easily convertible to cash at an amount that is measurable.
Examples of cash equivalents include commercial papers, bank certificate of deposit, treasury bills usually with a tenor of 3 months or less etc.
Cash equivalents are assets and help improve the company's liquidity.
Morale means confidence, enthusiasm, and discipline of a person or group at a particular time.
