All categories

2 years ago

When a business owner is asked how the business is doing and she replies,

Business

1 answer:

Rama09 [41]2 years ago

5 0

Answer:

That we are no profit and loss position.

Explanation:

Breakeven point is the point at which the company is at no profit no loss position. If the lady is saying that we are breaking even, its one explanation is that all that we have earned has covered all of our costs. The second explanation is dependant on the fixed cost considered. If the fixed cost considered is for whole of the year and we are breaking even at the 8th month then the contribution in the next four months would be 100% profit.

You might be interested in

Green Company is planning to introduce a new product with a 75 percent incremental unit-time learning curve for production in ba

sweet-ann [11.9K]

Answer:

210 hours

Explanation:

The learning curve rate can be found by log75%

Ln0.75 = 0.12249

1 batch requires 200 hours

The 1500 units batch will require 200 hours

For 3000 units there will be two batches of 1500 units each

200 hours * 2 batches * 0.12249 * 4.5 = 210 hours

6 0

2 years ago

Norma Company had 10,000 units in work in process at January 1 that were 50 percent complete. During January, 25,000 units were

ZanzabumX [31]

Answer:

b. 29,800.

Explanation:

Number of units out in January = 25,000 units completed during month + 80% of 6,000 units completed at month end

= 25,000 + 4,800

= 29,800

5 0

2 years ago

Read 2 more answers

The need for more versatile reporting than what was available in 1980s era ERP systems led to the development of what type of sy

Kipish [7]

Answer:

Executive information systems

Explanation:

Executive information systems - The reason behind establishing this system that allows the user to access internal and external data for completing the goal of the organization. it helps in decision making process by allowing access to the internal data. it includes quantitative analyses, statistical tools,etc.

8 0

2 years ago

Chip’s Woodworking manufactures and sells specialty wood plaques. The production manager reported that the company needs to prod

zheka24 [161]

Answer:

UNIT COST $32

Explanation:

the absorption costing system is the sum of expenses applicable to purchases and charges directly or indirectly incurred to produce a good or service.

This model considers both fixed and variable costs. Which translates into a higher unit cost.

in these case unit cost = 6+10+6+6+2+2 = 32

+Direct materials $6

+Direct labor $10

+Fixed manufacturing overhead $6,000 / 1000 units= $6

+Variable manufacturing overhead $6

+Fixed operating expenses (selling, general, and administrative) $2,000 / 1000 units=$2

Variable operating expenses (selling, general, and administrative $2

8 0

2 years ago

Larry Nelson holds 1,000 shares of General Electric common stock. The annual shareholders meeting is being held soon, but as a m

Lisa [10]

Answer:

Larry must have signed a PROXY AGREEMENT that gives the management group control over his shares.

A proxy agreement is generally used for stockholders voting procedures, they basically grant another person the right to vote on behalf of another stockholder.

Larry's current investment in the company is $86,000.

= 2,000 stocks x $43 = $86,000

If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth $82,560.

company's new market value = (20,000 x $43) + (5,000 x $34.40) = $1,032,000

new stock price = $1,032,000 / 25,000 stocks = $41.28

= $41.28 x 2,000 = $82,560

This scenario is an example of STOCK DILUTION.

The stock price will lower because the increase in the company's value is less than proportional to the increase in the number of stocks.

Larry could be protected if the firm's corporate charter includes a PREEMPTIVE provision.

Preemptive rights give current stockholders the right to purchase more stocks (in case the company issues more stocks) before any outside investors.

If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become $103,200.

= [(5,000 / 10) x $34.40] + $86,000 = $17,200 + $86,000 = $103,200

5 0

2 years ago