Answer: It should shot down immediately.
Explanation:
If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.
Yes,yes, it is.
making it longer so i can answer
Total manufacturing costs=direct material+direct labor+manufacturing overhead
Calculate direct labor
Let direct labor be x
120%=1.2
1.2x=180000
Divide both sides by 1.2
X=180,000÷1.2
X=150,000 direct labor
Total manufacturing costs=
120,000+150,000+180,000
=450,000...answer
Hope it helps!
Answer:
Estimated change in cash = $220,000
Explanation:
GIven:
Net income = $200,000
Sales = $540,000
Expenses = $180,000
Depreciation expenses = $60,000
Accounts receivable balance increased = $40,000
Find:
Estimated change in cash
Computation:
Estimated change in cash = Net income + Depreciation expense - Accounts receivable balance increased
Estimated change in cash = 200,000 + 60,000 - 40,000
Estimated change in cash = $220,000
Answer:
C) both an initial cash outflow and a future cash inflow.
Explanation:
Net present value method: The initial investment is subtracted from the discounted cash inflows of present value in this approach. If the sum is positive than the project, otherwise it is not beneficial to the company.
In mathematically,
Net present value = Present value of all annual cash inflows after the discount factor is applied - initial investment
The change in working capital impact the initial cash outflows and future cash inflows i.e net present value
