Answer:
D) 3.48
Explanation:
Current Year Sales = $700
Growth rate = 15%
Projected Sales=$700*15% +$700
Which is $805
Required inventory = $30.2 + 0.25*projected sales
Req.Inv = $30.2 + 0.25($805)
Req.Inv = $231.45
Inventory turn over = projected sales/Req.inv
$805/$231.45
Inventory turn over = 3.48 times
Answer: A. In equilibrium, each worker is paid is or her value of marginal product of labour.
Explanation:
Marginal productivity of income distribution refers to the additional revenue derived from the marginal unit of product produced and that wages should be equal to the marginal revenue derived from the production of additional or marginal product and this is achieved at equilibrium.
The theory also implies that workers should not be paid below or above the marginal revenue derivable from marginal product which implies they cannot be paid $15 or $40, moreover the product price is not a determinant of wages rate.
Answer: c. Contribution margin ratio = 1 − Variable cost ratio
Explanation:
The Contribution margin ratio is defined as the difference between the sales price of a good and it's variable costs. It is expressed as a percentage.
The formula is,
Contribution Margin Ratio = Sales - Variable Costs / Sales
Breaking the formula down further we have,
Contribution Margin Ratio = Sales/ Sales - Variable Costs / Sales
Contribution Margin Ratio = 1 - Variable Costs / Sales
Variable Cost/Sales is the Variable Cost Ratio.
So Option C is correct.
<span>the answer for this question is 10.50%</span>
Answer:
(3) to protect his/her other assets with limited liability.
Explanation:
The reason a professional such as a lawyer or doctor would incorporate his/her business is to protect his/her other assets with limited liability. Limited liability will be very good option for the professionals such as lawyer and doctors because it provides a sense of security. Limited liability secures the owners from any kind of loss if happens in business. Although, it is obviously much costlier but personal assets of the owners are also secured in the case if the business goes bankrupt therefore, it is the very best option for the professionals.
