Assume you have been hired as a managing consultant be a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month (working 20 days/month). The daily wage (per worker) is $70, and the price of the firm’s output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm’s fixed cost is “high enough” so that the firm’s total costs exceed its total revenue. The marginal cost of the last unit is $30.
Answer to relevant QuestionsRevenue Recognition" Please responds to the following:•In some situations, revenue is recognized as it is earned in the economic sense. In other situations, a criterion such as the point of sale is used to recognize ...Discuss which approach to substantive testing you believe to be the most effective and indicate why. Create a way, other than using confirmations, for an auditing team to substantiate account balances and how the firm should ...Duracell Ltd claim that the life of their batteries in motorised soft toys is approximately normally distributed with a mean of 102.9 hours and a standard deviation of 16.5 hours. The best 65% of batteries would last beyond ...For a loan of $100,000, at 7 percent interest for 30 years, find the balance at the end of 4 years and 15 years.Jackson invested $190,000 in a passive activity five years ago. On January 1, 2005, his at-risk amount in the activity was $45,000. His shares of the income and loses in the activity were $52,000 loss 2005, $20,000 loss in ...
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