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1 year ago

When antonia's carpet company doubled in size, average (per unit) costs of production increased. this is an example of?

1 answer:

6 0

The appropriate response is economies of scale. It is the cost advantage that emerges with expanded yield of an item. Economies of scale emerge in view of the converse connection between the amount delivered and per-unit settled expenses; i.e. the more noteworthy the amount of a decent created, the lower the per-unit settled cost in light of the fact that these expenses are spread out finished a bigger number of products. Economies of scale may likewise decrease variable expenses per unit in light of operational efficiencies and collaborations.

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Finding operating and free cash flows Consider the following balance sheets and selected data from the income statement of Keith

Reil [10]

Answer:

a. NOPAT = EBIT * (1-t)

NOPAT = $2,700 * (1-0.40)

NOPAT = $1,620

b. OCF = NOPAT + Depreciation

OCF = $1,620 + $1,600

OCF = $3,220

c. FCF = Net fixed asset investment - Net current asset investment

FCF = $3,320 - $1,400 - $1,400

FCF = $420

Note:

Net fixed asset investment = Change in net fixed assets + depreciation

= ($14,800- $ 15,000) + $1,600

= $1,400

Net current asset investment = Change in current assets - Change in accounts payable and accurals

= ($8,200 - $6,800) - {($1,600 + $200) - ($1,500 - $300)}

= $1,400

d. FCF is meaningful as it shows that OCF is able to cover Operating expenses as well as Investment in Fixed and Current Assets

4 0

2 years ago

Assume the Hiking Shoes division of the All About Shoes Corporation had the following results last year (in thousands). Manage

Juliette [100K]

Answer: Division's Residual Income (RI) is 10,50,000.

Explanation:

Management's target rate of return = 20%

Operating income = 1,250,000

Total assets = 1,000,000

Current liabilities - 750,000

∴ Residual income = Net operating income - (Total assets × Target rate of return)

= 1250000 - (1,000,000 × 20%)

= 1250000 - 200000

= 10,50,000

So, division's Residual Income (RI) is 10,50,000.

8 0

2 years ago

Read 2 more answers

Hector Aguerra is interested in making a lot of money. He is a very good salesperson. People tell him he could sell sand in Saud

m_a_m_a [10]

Answer:

B. by commission

Explanation:

Hector Aguerra is very hard working as he can sell anything, therefore he should best work where he will get extra salary for his extra efforts.

When taking all factors common, option a salary with overtime will limit his salary as number of hours in a day are constant and are limited.

In option c, hourly rate will also limit the salary based on hours as they are limited.

In option d, in a situation with team based compensation, his salary will be shared in a team in which there might be people not working with as many efforts as many of Hector.

Its only in option b that he will be paid maximum in form of sales commission as that all depends on number of units sold of a product, and if he is capable of selling a huge amount of products then he will get maximum commission.

Correct answer B. by commission

8 0

1 year ago

If i can die for my country i should be able to buy a beer employs what type of logic?

ivann1987 [24]

This logic refers to someone thinking that they should be able to make all decisions regarding their life at age 18 including drinking. Since they can join the military at age 18 without parent consent, they want to be able to make other 'grown up' decisions like purchasing beer.

8 0

2 years ago

Read 2 more answers

suppose the federal reserve decides to decrease the money supply in order to lower inflation. in three or four sentences, explai

Tcecarenko [31]

What will happen is that diminishing the supply of cash will raise loan costs, in this manner diminish the measure of financial action, specifically venture and customer spending. This will prompt a general abatement popular for products and enterprises, achieving a decline in costs, or all the more normally, a littler increment in costs.

8 0

2 years ago