BUSINESS COLLEGE

Vern's makes all sales on account, subject to the following collection pattern: 20% are collected in the month of sale; 70% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for October, November, and December were $70,000, $60,000, and $50,000, respectively, what was the budgeted receivables balance on December 31?A. $40,000.
B. $46,000.
C. $49,000.
D. $59,000.
E. Some other amount

Answers

Answer 1

Answer:

Answer:

B. $46,000.

Explanation:

The computation of the budgeted receivables balance on December 31 is shown below:

Particulars Sale October NOvember December Balance

October $70,000 $14,000 $49,000 $7,000 $0

($70,000 × 20%) ($70,000 × 70%) ($70,000 × 10%)

NOvemeber $60,000 $12,000 $42,000 $6,000

($60,000 × 20%) ($60,000 × 70%)

December $50,000 $10,000 $40,000

($50,000 × 20%)

Total it would be

= $6,000 + $40,000

= $46,000

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Answers

Answer:

The correct answer is letter "B": Choice D.

Explanation:

Fixed costs are business expenses that do not change when production levels increase or decrease. These are one of two types of business expenses and the other is variable costs. Variable costs change with increases or decreases in production volume. Then:

1)The wages paid to the taco makers and other employees - Variable Costs

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At her current level of consumption, Jess gets half as much marginal utility from an additional bagel as from an additional muffin. If the price of muffin is $2 each, then Jess is maximizing her utility if the price of a bagel is:

Answers

Answer: $1

Explanation:

From the question, we are informed that at her current level of consumption, Jess gets half as much marginal utility from an additional bagel as from an additional muffin.

Since we have been informed that the price of muffin is $2 each, then Jess is maximizing her utility if the price of a bagel is:

= $2/2

= $1

It should be noted that utility simply means satisfaction that is gotten when one uses a particular product or service.

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b.A better divisional performance measure would be the rate of return on investment

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d.None of these choices would be included.

e.All of these choices (a, b & c) would be included.

Answers

Answer:

Option D

Explanation:

In simple words, method of performance division is considered to be effective when it depicts a true picture, not because it gives a sound position of the organisation as waned by the managers.

Thus, reticulation should not be done. Also, Divisional performance should be judged by some other aspects like time taken to perform the job or wastage done by them etc.

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Answers

Answer:

The NPV of the proposal is $4.7 million.

b. How can your firm turn this NPV into cash today?

C. The firm can borrow $19.53 million today and pay it back with 10.1% interest using the $21.5 million it will receive from the government

Explanation:

year net cash flows

0 -$10.2 million

1 $16.4 million

discount rate 10.1%

NPV = -$10.2 million + $16.4 million / 1.101 = -$10.2 million + $14.9 million = $4.7 million

the PV of the $21.5 million government payment = $21.5 / 1.101 = $19.53 million

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Answers

Answer:

this special order will result in a $2,637 profit, so the company should accept it

Explanation:

special order for 26 gold bracelets

discounted price of $367 per unit

normal production costs:

direct materials $143
direct labor $90
manufacturing overhead $31
total $264

costs related to the special order

increase in direct materials = $7 per unit, total of $150 per unit

direct labor $90 per unit

variable overhead = $8 per unit

machine used for this project only $457

revenue generated by special order:

total revenue $9,542

- variable costs ($6,448)

direct materials $3,900
direct labor $2,340
variable overhead $208

- special machine ($457)

profit from special order $2,637

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Answers

Answer: It drives down prices and increases the economic welfare of consumers.

Explanation:

Greenfield investment is a form of Foreign Direct Investment where the investors build a facility/ies in the host nation from scratch as opposed to buying or leasing one.

With increased competition from greenfield investments, consumers would be better off because there will be more quantity of the relevant good available in the market. This will lead to the prices falling and consumers being able to afford more of the good at higher qualities.

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