Answer:
Days' sales in inventory = 24 days.
Explanation:
We know,
Days' sales in inventory = 365 ÷ Inventory Turnover
Given,
Inventory Turnover = Cost of goods sold (cost of merchandise sold) ÷ Average inventory
Inventory Turnover = $2,100,000 ÷ $140,000
Inventory Turnover = 15 times
Therefore,
Days' sales in inventory = 365 ÷ 15 times
Hence, Days' sales in inventory = 24.33 days
Days' sales in inventory = 24 days.
Days' sales in inventory indicates that within 24 days, the company can sell the inventory.
Answer:
Efficient frontier analysis closely resembles a graphic system that breaks down risk performance and will show three levels. The return or investment of low, medium and high risk can help in the decision-making process. EFA reminds me of one of my favorite TV shows, Shark Tank. In Shark Tank you will see "sharks" or investors who choose to invest in a company, usually new companies, and often these investments have a high risk, but they could also have a high rate of return. As with most things, there are some limitations with the use of an efficient border analysis. A common limitation for EFA is the lack of reality that the return will always follow a distribution flow. EFA is not an exact science; It is difficult to identify and disaggregate. Stocks are a good example of EFA limitation. Investment actions are difficult to predict and preserve because there is a lot of unpredictability in the stock market.
NOTE: Explanation is in the answer.
Answer:The minimum amount is the price that will give a profit of $3700
Explanation:
The minimum amount the company should accept for product X if it's to be sold at the split off point it's maximum amount they will earn as profit if they sales after further procession.
The total cost the company will incur if they process further it's the cost they incurred at the split off point and at further procession which equals ($16,800+$15,000) =$31,800
On sales after procession they will earn a price of $35500 which means a profit of $3700 this means the firm should sale product X at spilt off point for a price that will bring a minimum profit of $3700.
Explanation:
Fixed cost is the cost that is constant for each unit of the item produced and does not depend upon the quantity of production. Fixed cost may include rent payment, insurance, interest payment.
whereas variable cost are cost that vary with quantity of output produced. It may include, labor cost, commissions, raw material, etc.
For Internet grocery shopping fixed cost can be cost of storing the grocery, insurance of inventory, electricity payment, cost of delivery to the customer, etc. whereas variable cost may be discount offered on quantity of purchase, Sale offers to attract customers, etc.