Answer:
This implies Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.
Explanation:
The accounts receivable turnover ratio refers to an accounting ratio that is used to show the how effective a firm is in collecting the receivables or money its clients are owing it.
This implies that accounts receivable turnover ratio is used to determine the extent to which a firm ie effectively managing the credit it gives to customers and how quickly the firm collects that that short-term debt.
The formula for calculating the accounts receivable turnover ratio is as follows:
Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
When the accounts receivable turnover ratio is high, it implies that the company is efficient is collecting debt and a high percentage of its cutomers are paying up their debts.
The account receivable turnover ratios in the question therefore imply Bolster Soda collects receivables more effectively and quickly than Castor Soda in the two years.
Answer:
Instructions are below
Explanation:
Giving the following information:
January 520 $ 4,470
February 490 4,260
March 300 2,820
April 500 4,350
May 310 2,960
June 480 4,200
July 320 3,000
August 400 3,600
September 470 4,050
October 350 3,300
November 340 3,160
December 320 3,030
A) To calculate the fixed and variable costs, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (4,470 - 2,820) / (520 - 300)
Variable cost per unit= $7.5
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 4,470 - (7.5*520)
Fixed costs= $570
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,820 - (7.5*300)
Fixed costs= $570
B)
Total cost= 570 + 7.5x
x= hours of mantainance
C) x= 590
Total cost= 570 + 7.5*590
TC= $4,995
D) x= 600
Total cost= 570 + 7.5*600
TC= $5,070
Answer:
The contribution margin will decrease by 2.50
Explanation:
IF sales decreases, then the contribution margin decreases.
That's because, there is less money to pay for the variable cost.
The company will also have to sale more units to break even, as now each units contribution is fewer.
Cone's should evaluate how much their sales are expected to increase for the lower price and be cautious
Question:
If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.
A) saving; increased
B) population growth; decreased
C) depreciation; decreased
D) total output growth; decreased
Answer
The correct answer is A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.
Explanation
Golden Rule Level of the Capital Stock is the level at which
MPK = δ,
Where MPK is Marginal Product; and δ the depreciation rate;
so that the marginal product of capital equals the depreciation rate.
In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .
Answer:
<u>1. Johann is looking to double the profits of his lemonade stand</u>
Explanation:
Note that Johann was<em> still making m</em>oney from lemonade stand but was not content with the profits he was making that was his argument or reason for increasing the price of a cup of lemonade from 25 cents to 50 cents.
<em>Without having forsight</em> Johann's decision eventually resulted in him selling fewer cups at the new price and therefore making less money than before.
