Answer:
The company should accept the special order.
Explanation:
The company has the capacity to produce 20,000 units and It is currently only producing 13,000 units.
The company can produce in addition of 7,000 units (more than the number of units from special order)
The revenue of special order: 6,500 x $62 = $403,000
Revenue of special order - Incremental cost of accepting the special order = $403,000 - $382,000 = $21,000 >0
The company gains $21,000 on special order => The company should accept the special order.
Answer:
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Answer:
False
Explanation:
Manager should start investigation as soon as complaint is brought to his notice. He must not wait for the charge to be proven. He should be the one taking lead on the investigation and responsible for investigation. And after investigation if charge is proven then he is supposed to apply penalty according to company's policy. And if not proven then talk to individual who brought the charge and give them proof.
Answer:
II and IV only.
Explanation:
‘Ratio Analysis’ is used to analyze the performance of a company. It is used to analyze the liquidity, profitability, solvency and operational efficiency of the company.
Liquidity ratios: It helps in analyzing the ability of the firm to pay of its short terms liabilities using short term assets.
Following ratios are classified as liquidity ratio:
- Quick ratio determines the ability of the firm to pay off its current liabilities using quick assets.
- Current ratio determines the ability of the firm to pay off its current liabilities using current assets.
Answer:
Higher fixed costs and Deteriorating net cash flow postion
Explanation: