Direct material cost variance = (Standard price - Actual Price) * Actual Quantity
= ($50 - $51) * 47,000
= $47,000 adverse
Answer:
6780$
Explanation:
We first find 11% of 2000 by the following equation
2000 x .11
From this we get the annual interest 226$
226$ x 30 = $6780
Answer:
5 tons of salt for 1 ton of pepper
10 tons of salt for 1 ton of pepper
Explanation:
Alphaland's opportunity cost of producing one ton of pepper = 80 ÷ 5
= 16 tons of salt
Betaton's opportunity cost of producing one ton of pepper = 3 ÷ 1
= 3 tons of salt
Alphaland's opportunity cost of producing one ton of salt = 5 ÷ 80
= 0.0625 tons of pepper
Betaton's opportunity cost of producing one ton of salt = 1 ÷ 3
= 0.3333 tons of pepper
Therefore, Betaton has a comparative advantage in producing pepper because it has the lower opportunity cost of producing pepper as compared to Alphaland. On the other hand, Alphaland has a comparative advantage in producing salt because it has the lower opportunity cost of producing salt as compared to Betaton.
Hence, Betaton is specialized in the production of pepper and Alphaland is specialized in the production of salt.
Trade is beneficial for both the nations when Alphaland buys pepper at a price lower than the 16 tons of salt and Betaton sells pepper at a price greater than 3 tons of salt.
Trade ratios:
5 tons of salt for 1 ton of pepper
10 tons of salt for 1 ton of pepper
Your answer to question 1: is A
Your answer to question 2: is B
Answer:
35.35 days
Explanation:
For the computation of company’s days’ sales in receivable first we do the following calculations
As we know that
Profit margin = Net income ÷ Sales
0.086 = 187,000 ÷ Sales
Sales = 2,174,418.605
So,
Credit sales = Sales × Sales percentage
= 2,174,418.605 × 0.6
= 1,304,651.163
Receivables turnover ratio = Credit sales ÷ Receivables
= 1,304,651.163 ÷ 126,370
= 10.3241
Now
Days sales in receivables = 365 ÷ Receivables turnover
= 365 ÷ 10.3241
= 35.35 days
