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2 years ago

Sabina makes $2,000 per month. She spends $300 on credit card payments and $450 on an auto loan. Does she have excessive debt?

1 answer:

4 0

She does not have an excessive debt because of her debt-to-income ratio lower than 42 percent. 42% is a limit of good average debt to income ratio and Sabina's debt to income ratio has not yet exceeded that limit. The debt to income ratio can be calculated by<span> dividing her total debt by her total income which results in 37.5% (($300+$450)/$2000 = 37.5%).</span>

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I sell shoes for $250 per pair. They cost me $25 to produce. My markup on cost is:______

aalyn [17]

Answer:

Markup percentage= 900%

Explanation:

Giving the following information:

I sell shoes for $250 per pair. They cost me $25 to produce.

<u>To calculate the markup percentage, we need to use the following formula:</u>

Markup percentage= [(selling price - unitary cost)/unitary cost]*100

Markup percentage= [(250 - 25)/25]*100

Markup percentage= 900%

7 0

2 years ago

True or False: A small number of institutional investors are often able and motivated to bring direct shareholder pressure on a

Pani-rosa [81]

Answer: True

Explanation:

The agency problem is when there is a conflict of interest between the management of a company and the stockholders that exists in the company.

In order to help reduce the potential agency conflicts that at occur during the course of a business, a few of the institutional investors often bring in the pressure of the direct shareholder on the management of a firm. They believe by involving the shareholders, the management will try not to have any differences with the shareholders and thereby reducing agency problem.

3 0

2 years ago

Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia.

Arisa [49]

Answer: (A) Greenfield investment

Explanation:

The greenfield investment is one of the type of FDI ( Foreign direct investment) that helps in constructing the various types of new production facilities in an organization.

The main objective of the greenfield investment process is to making the manage the investor control process and also form different types of opportunities for managing the partnerships in the market.

According to the given question, the Greenfield investment process is helps in establishing the various types of new operation in Indonesia and it is the form of foreign direct investment.

Therefore, Option (A) is correct answer.

7 0

2 years ago

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

yarga [219]

Answer:

$10,700

Explanation:

The unit product cost = $15 + $57 + $3 = $75

Sale revenue = $100 × 8,400 = $840,000

Less :Variable cost

Variable cost of goods sold = 8,400 × $75 = $630,000

Variable selling and administrative = 8,400 × $7 = $58,800

Contribution margin = $151,200

Fixed manufacturing overhead = $132,000

Fixed selling and administrative expenses = $8,500

Net operating income = $10,700

4 0

2 years ago

The following information relates to the Cutting Department of Kittina Corporation for the month of February. Kittina uses a FIF

Alex787 [66]

Answer:

ending work in process = $42,700

Explanation:

all materials added at the beginning of the process:

beginning work in process = 18,000

units started = 160,000

ending work in process = 7,000

equivalent units for materials = 160,000 + 7,000 = 167,000

conversion costs:

beginning work in process = 18,000 x 10%, so 90% added = 16,200

units started and transferred out = 160,000 - 7,000 = 153,000 x 100% = 153,000

ending work in process = 7,000 x 40% = 2,800

equivalent units for conversion costs = 16,200 + 153,000 + 2,800 = 172,000

ending work in process = 7,000 units

100% complete for materials = 7,000 x $3.10 = $21,700

40% complete for conversion costs = 2,800 x $7.50 = $21,000

total ending work in process = $42,700

7 0

2 years ago