Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company that has a current ratio of 9:1 indicates the following, except ___. a.the company is operating in an industry that requires high cash

A company that has a current ratio of 9:1 indicates the following, except ___.
a.the company is operating in an industry that requires high cash resources
b.the company is inefficient in using its resources
c.have the opportunity to invest in short-term investments
d.most of the assets are financed by long term loans.
DEF Electronics produces and sells printers. Each unit of printer requires materials worth RM120. The business pays the employees a basic pay of RM500 per month and a commission of RM20 will be added for each unit sold. Currently the business has 10 employees. Other related costs include RM5,000 for monthly factory rental and RM1,800 utility bills per month. The selling price of each printer is RM500. Calculate the break-even point in value (RM).
a.RM2500
b.RM16500
c.RM7000
d.RM9500
DEF Electronics produces and sells printers. Each unit of printer requires materials worth RM120. The business pays the employees a basic pay of RM500 per month and a commission of RM20 will be added for each unit sold. Currently the business has 10 employees. Other related costs include RM5,000 for monthly factory rental and RM1,800 utility bills per month. The selling price of each printer is RM500. Calculate the total fixed cost.
a.RM5,000
b.RM6,800
c.RM11,800
d.RM1,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

Students also viewed these Accounting questions