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3 years ago

If the demand for and supply of a good both increase, but demand increases by more than supply, price will:

Business

1 answer:

enyata [817]3 years ago

3 0

The price will rise because the manufacturer a cannot meet the demand so it will be harder to get the product

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Using ABC in a service company

Ilia_Sergeevich [38]

Answer:

Blanchette Plant Service

ABC Costing Technique:

1. Total cost of the Kerry job:

Plants = $750

Direct labor = 1,300

Total cost = $2,050

2. Determination of operating income or loss (Kerry's job):

Service Revenue = $3,540

less cost of service 2,050

Operating income = $1,490

3. With desired operating income of 30% of cost:

Operating income = $615 ($2,050 x 30%)

The company can charge the Kerry job $2,665 ($2,050 + 615) or ($2,050 x 1.3)

Explanation:

Operating income or loss is the difference between revenue and costs of providing the services or goods. When the revenue exceeds the operating cost, the difference is an operating income. When the revenue is exceeded by the operating cost, the difference is an operating loss. While the former means that the organization has added value to its resources, the latter implies that the organization has lost some value to its resources, thereby reducing the equity of the owners in the business entity.

6 0

4 years ago

When a business earns more money than it spends, the entrepreneur is paid from the

musickatia [10]

I believe it is the Owner's Salary.

3 0

3 years ago

Star Company has a contingent liability that has a likelihood of actual occurrence that is classified as probable. Also, the amo

Alexxandr [17]

Answer:

recognize a liability and an expense in its financial statements.

Explanation:

Contingent liability refers to a liability that arises in some unpredictable future event. In this, the amount is expected or predicted.

Here in the question the actual occurrence would be categorized also its amount would be predicted so the same is to be recorded as a liability and recorded as an expense in the financial statement i.e. balance sheet & income statement

7 0

3 years ago

River Wild is considering purchasing a water park in Charleston, South Carolina, for $ 2,050,000. The new facility will generat

Kipish [7]

Answer:

1. Payback period = 3.94 Years

The ARR is $262,750

The NPV is $937,102,

The approximate IRR of this investment is 20.87%

2. The Company should invest in this project as it NPV is positive, payback period is lower than the required Payaback period, ARR is greater than the minimum ARR, IRR is greater than cost of capital

Explanation:

In order to calculate the Payback period ARR, the NPV, and the approximate IRR of this investment we would have to use the following formula:

Payback period = Initial Investment/Annual net Cash inflow

Payback period = $ 2,050,000/$ 520,000

Payback period = 3.94 Years

ARR = Average Net Income/Average Investment

Average Net Income = Annual net Cash Flow - Annual Depreciation

Average Net Income = $ 520,000-$ 2,050,000/8

Average Net Income = $262,750

Average Investment = ($ 2,050,000+0)/2 = $1,025,000

ARR = $262,750/1,025,000

ARR = 25.63%

NPV = -Initial Investment + Annual Cash Inflow *(1-(1+r)^-n)/r

NPV = -$ 2,050,000 + $ 520,000*(1-(1+10%)^-8)/10%

NPV = 937,102.15

IRR = rate(nper,pmt,pv,fv)

IRR = rate(8, $ 520,000,-$ 2,050,000,0)

IRR = 20.87%

The Company should invest in this project as it NPV is positive, payback period is lower than the required Payaback period, ARR is greater than the minimum ARR, IRR is greater than cost of capital

6 0

3 years ago

HELP PLEASE HURRY!!!! Is it fair to restrict people's ability to work based on their age? Why or why not? Justify your answer.

7nadin3 [17]

Yes, it is fair. Younger people (Below 18) need to focus more on school. Work can take their attention off of school. And without school they wont be able to get a better job. Plus younger people can only work part time due to child labor. Most workers below 18 also have parents that's job is to feed and care for them, which means they do not even need to work until they are over 18. most people that work under the age of 18 is just for the fact of having money, not because they need it to live.

3 0

3 years ago

Read 2 more answers