Answer:
By how much are customers paying early or late?
Explanation:
Days sales outstanding (DSO) represents the average number of many days it takes a business to collect its accounts receivables.
DSO = (accounts receivables / total credit sales) x 365 days
DSO = ($60,000 / $325,000) x 365 days = 67.38 days
customers are paying late by 67.38 days - 45 days = 22.38 days
Answer:
A falling interest rate will lead to a movement along the demand curve for loanable funds
Explanation:
A movement along the demand curve for a good or service is caused by a change in the price of the good or service.
Because the interest rate is the price of the loanable funds, a falling interest rate will cause a movement along the demand curve for loanable funds. More specifically, a falling interest rate, in other words, a lower price, will increase the demand for the loanable funds, so the movement will be upwards.
Answer:
Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced
Explanation:
<em>To determine whether or not the stocks are correctly priced ,</em>
<em>we have to compare the r</em><em>equired return</em><em> and the </em><em>expected return on each of them.</em>
Required return = Rf +β (Rm-Rf)
Note that Rm-Rf is also known as market risk premium
<em>Stock Y Stock Z</em>
<em>Required return </em> 2.4% + 1.2(7.2%) 2.4% + 0.8(7.2%)
= 11% = 8.2%
<em>Expected return</em> <em>12.1% 7.85%</em>
Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced
Answer:
Option (a) is correct.
Explanation:
Pretax income = Contribution - Fixed cost
Contribution = Pretax income + Fixed cost
= $1,824,000 + $1,444,000
= $3,268,000
Sales - Variable Cost = Contribution
Variable Cost = Sales - Contribution
= (380,000 electric screwdrivers × $20.40 each) - $3,268,000
= $7,752,000 - $3,268,000
= $4,484,000
Answer:
Direct labor hour per unit= 0.87 hours
Explanation:
Giving the following information:
A particular product requires 0.71 direct labor-hours per unit.
The allowance for breaks and personal needs is 0.04 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.12 direct labor-hours per unit.
<u>The total direct labor hour per unit is the time required to produce one unit.</u>
Direct labor hour per unit= 0.71 + 0.04 + 0.12
Direct labor hour per unit= 0.87 hours
