Which term describes assets generated through operations that have been reinvested into the business?.

1 answer:

3 0

Retained earnings is the term that describes assets generated through operations that have been reinvested into the business.

<h3>What is retained earnings?</h3>

This occurs when a company decides that they would reinvest the profit that they have made from a business back into the business.

It is a portion of the cumulative profit that has been made by the business. They have retained this in order to make use of it in the same business in the future.

Read more on retained earnings here:

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3 years ago

A furniture cabinet maker produces two types of cabinets that house and hide plasma televisions. The Mission-style

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Answer:

The maximum profit is $72,800 with 80 cabinets of Mission-style and no cabinets of Rustic-style to be used

Explanation:

Let the furniture cabinet maker produce x Mission-style cabinets and y Rustic-style cabinets

Objective function: Maximize profits

Profit yielded by a Mission-style cabinet = $910

Profit yielded by x Mission-style cabinets = $910 * (x)

Profit yielded by a Rustic-style cabinet = $1200

Profit yielded by y Rustic-style cabinet = $1200 * (y)

Objective function: Max (910x + 1200y)

Subjected to Constraints

Labor Hours: No of hours required to produce a Mission-style cabinet =15

No of hours required to produce a Rustic-style cabinet =20

Total Labor Hours = 1200

Constraint 1) 15*(x) + 20*(y) = 1200

Budget = $30,000

Cost of materials for a Mission-style cabinet =$340

Cost of materials for a Rustic-style cabinet =$430

Constraint 2) 340*(x) + 430*(y) <= 30000

Constraint 3) x and y >= 0

Put these constraints in Excel solver, we obtain the maximum profit as $72,800 with 80 cabinets of Mission-style and no cabinets of Rustic-style to be used

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3 years ago

You can now sell 70 cars per month at $35,000 per car, and demand is increasing at a rate of 4 cars per month each month. What i

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Answer:

the fastest we could drop your price before your monthly revenue starts to drop is $2,000

Explanation:

Data provided in the question:

Cars sold per month, Q = 70 cars

Price of each car, P = $35,000

Rate of increase in demand, $\frac{dQ}{dt}$ = 4 cars per month