NanoTech is ready to begin production of its exciting new technology. The company is evaluating three methods of production: (A) a small production facility with older equipment, (B) a larger production facility that is more automated, and (C) subcontracting to an electronics manufacturer in Singapore. Process A has a fixed cost of $200,000 and a variable cost of $40 per unit. Process B has a fixed cost of $600,000 and a variable cost of $20 per unit. Process C has no fixed cost since the item is purchased. It's variable cost is the purchase price of $60 per unit. For what levels of demand would each process be desirable

Answers

Answer 1

Answer:

Process A= from 10,001 to 19,999

Process B= 20,001 to infinity

Process C= from 0 to 9,999

Explanation:

Giving the following information:

Process A has a fixed cost of $200,000 and a variable cost of $40 per unit.

Process B has a fixed cost of $600,000 and a variable cost of $20 per unit.

Process C has no fixed cost since the item is purchased. It's variable cost is the purchase price of $60 per unit.

The general rule is that the lower the fixed costs, the fewer units are required to cover for costs. To determine the number of units for each process, we will compare process C to A, and then A to B.

Process C and A:

Process A= 200,000 + 40x

Process C= 60x

x= number of units

200,000 + 40x= 60x

200,000= 20x

10,000 = number of units

The indifference point is 10,000 units. From 0 to 9,999; process C is more convenient.

Process A and B:

Process A= 200,000 + 40x

Process B= 600,000 + 20x

200,000 + 40x = 600,000 + 20x

20x= 400,000

x= 20,000

The indifference point is 20,000 units. From 10,001 to 19,999; process A is more convenient.


Related Questions

An annuity that pays $14,000 a year at an annual interest rate of 5.04 percent costs
$145,000 today. What is the length of the annuity time period?

Answers

Answer:

To determine the length of the annuity time period, we will use the Present Value of Annuity (PVA) formula:

PVA = PMT × (1 - (1 + r)^(-n)) / r

Where:

- PVA is the present value of the annuity, which is $145,000 in this case.

- PMT is the annual payment, which is $14,000.

- r is the annual interest rate, which is 5.04% or 0.0504 as a decimal.

- n is the number of years or length of the annuity time period, which we need to find.

First, let's rearrange the formula to solve for n:

n = -log(1 - (PVA × r) / PMT) / log(1 + r)

Now, we can plug in the given values:

n = -log(1 - ($145,000 × 0.0504) / $14,000) / log(1 + 0.0504)

n ≈ 13.96

Since the annuity time period must be a whole number, we can round up to get the nearest whole number:

n ≈ 14

The length of the annuity time period is approximately 14 years.

During 2024, Messier Leather Goods issued 763,000 coupons which entitles the customer to a $4.30 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 73% of the coupons will be redeemed. 419,000 coupons had been processed during 2024. Deluxe recognizes coupon expense in the period coupons are issued. At December 31, 2024, Deluxe should report a liability for unredeemed coupons of:

Answers

Deluxe should record a liability for unredeemed coupons of $237,704,000 on December 31, 2024.

Determine the total amount of coupons that will need to be redeemed first. Since Deluxe anticipates that 70% of the total will be redeemed, the final figure should be: 763,000 * 73% = 55,699,000

Sadly, only 419,000 coupons were processed; therefore, the number of coupons still unredeemed is: 55,699,000 - 419,000 = 55,280,000.

Out of the estimated total, 55,280,000 vouchers were not redeemed.

As a result, the value of these unredeemed coupons will be calculated as follows: = 55,280,000 * 4.30 (coupon value) = $237,704,000

The Unredeemed Coupons' Liability is therefore $237,704,000.

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The city of Hartwell spends about $3 million annually on snow removal. The city is considering amending its real property tax law to allow homeowners to offset the cost of private snow removal against their annual property tax liability. This amendment would affect the:

Answers

Answer: efficiency of the tax

Explanation:

From the question, we are informed that the city of Hartwell spends about $3 million annually on snow removal and that the city is considering amending its real property tax law to allow homeowners to offset the cost of private snow removal against their annual property tax.

It should be noted that the amendment to the affect the efficiency of the tax. The aim of the amendment in this case is to help change the behavior of the taxpayer by giving out rewards to the people who remove their own snow.

Which of the following most accurately states the purpose of the accounting
cycle?
A. To provide an accurate picture of just a business's expenses and
liabilities at the end of each accounting period
B. To provide an accurate picture of a business's revenues, expenses,
assets, liabilities, and equity accounts at any point during the
accounting period
C. To provide an accurate picture of a business's revenues, expenses,
assets, liabilities, and equity accounts at the end of each
accounting period.
D. To provide an accurate picture of just a business's revenues,
assets, and equity at the end of each accounting period

Answers

Answer:C. To provide an accurate picture of a business's revenues, expenses,

assets, liabilities, and equity accounts at the end of each

accounting period.

Explanation:

Yesteryear Productions pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $0.40 a share for two years commencing four years from today. After that time, the company plans on paying a constant $0.75 a share annual dividend indefinitely. How much are you willing to pay to buy a share of this stock today if your required return is 11.6 percent?

a. $3.78
b. $4.22
c. $4.37
d. $4.71
e. $4.98

Answers

Answer:

b. $4.22

Explanation:

The computation of the price that willing to pay is shown below:

But before that we need to do the following calculations

Terminal value at year 5 is

= 0.75 ÷ 0.116

= 6.46552

Now

Total cash flow is

= 6.46552 + .40

= 6.86552

And finally

Present value =(PVF at 11.6%,4 ×  D4 ) + (PVF at 11.6%,5 × CF5)

= (0.64468 × 0.40) + (0.57767 × 6.86552)

= 0.2579+ 3.9660

= $4.22

Hence, the correct option is b.

how do u get arrested

Answers

Answer:

breaking the laws that's one way to get arrested, if that's what you are asking lol

Answer:

Basically anything that interferes with the law or disturbs peace

Explanation:

1)hurt someone.

2)Spray paint.

3)Punch someone.

4)Fight with officer.

5)Get out of control at school.

6)Get in a fight.

7)Steal a car.

8)Sell drugs.

9)Hit a police car and drive off.

10)Threaten to hurt yourself.

etc

how can both stocks and bonds generate a positive return for investors
A. paying dividends
B. Paying Interest
C. Tax Deduction
D. Price Appreciation

Answers

A stock and bond can generate a positive return for investors by tax deduction.

What is a stock and a bond?

A bond is a debt instrument used by businesses to raise capital needed for business operations. Bondholders earn interest on the amount invested and at the maturity of the bond, they are paid back the amount invested.

A stock gives the holders ownership right in the company. Shareholders are paid dividends and when the value of the company appreciates, the wealth of shareholders increases.

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You can save up money to pay for the computer later, or
you can use a credit card to pay for it now.
Which option will you choose, and why? Write your
answer using at least two sentences.

You can save up money to pay for the computer later, oryou can use a credit card to pay for it now.Which

Answers

you can use a credit card to pay for it now

1.You get the computer right on time to use it.

2. Saving Takes time so to cut the time short just put the money on the credit card one time and pay for the computer.

I will choose the option of using a credit card to pay for the computer now.

What is a credit card?

A credit card refers to a small rectangular-shaped plastic card that is issued by a financial institution such as a bank to its customers, which avails them an opportunity to purchase goods such as computers on credit, especially based on the agreement that the specific amount of money taken would be paid later in the future with an agreed interest rate on it.

In this scenario, I will choose the option of using a credit card to pay for the computer now because saving up money would take more time and as such, I won't be able to do my job with a computer.

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Which of the following is true of managers?
O A. They are part of the informal structure.
B. They are not involved in planning.
C. They don't need to control employees.
D. They maintain organizational stability.

Answers

Answer:

The answer is D

Explanation:

All the other answers would get them fired LOL

A company proposes to invest in two divisible projects which are expected to generate the following cash flows.   Cash flows Year Project A Project B
1 10,000 10,000
2 60,000 30,000
Additional information
1.       The cost of capital applicable to both projects is 12%
2.       Project A requires sh. 20,000 and Project B 10,000 initial investment. 3.       The funds available are restricted as follows;
Years Cash available
0 1,000,000
1 800,000
4.       Funds not utilized one year will not be available in the subsequent years. Required;         
i.            Formulate a linear programming model to solve the above problem.        ii.            Solve the problem graphically and comment on the proportion of investing on the two projects.​

Answers

The graphical solution of this linear programming problem will involve plotting the feasible region defined by the constraints and identifying the corner points of the region. The corner point that maximizes the objective function will represent the optimal investment proportions between the two projects.

To formulate a linear programming model for the investment decision between Project A and Project B, we can define the following variables:

Let x be the amount invested in Project A (in thousands of shillings).

Let y be the amount invested in Project B (in thousands of shillings).

The objective is to maximize the total cash flows generated from the investments, which can be represented as: Maximize Z = 10x + 60y + 10x + 30y

Subject to the following constraints:

The total investment should not exceed the available funds:

x + y ≤ 1,000 (in thousands of shillings)

Project A requires an initial investment of 20,000 (in thousands of shillings):

x ≥ 20

Project B requires an initial investment of 10,000 (in thousands of shillings):

y ≥ 10

The funds available in each year should be utilized:

x + y ≤ 800 (for year 1)

The graphical solution of this linear programming problem will involve plotting the feasible region defined by the constraints and identifying the corner points of the region. The corner point that maximizes the objective function will represent the optimal investment proportions between the two projects.

Based on the graphical solution, the proportion of investing in the two projects will depend on the intersection of the feasible region and the objective function. The specific proportion will vary depending on the values and slopes of the constraints and objective function.

It is important to note that the actual graphical solution and interpretation of the proportion will require the specific values and plot of the feasible region and objective function.

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What types of political, economic and competitive challenges does MTV network international face by operating worldwide

Answers

Answer:

The answer is below

Explanation:

Some of the type of Political Challenges MTV network international face by operating worldwide includes:

1. Macro risks: these are risks relating to seizure or takeover by the government of the countries they are operating.

2. Micro risks: these include corruption, negative bias, or discrimination against the company due to MTV being a foreign company. It could also include excessive taxes levied against them.

Some of the type of Economic challenges MTV network international face by operating worldwide includes:

1. Inflation in the country of operation

2. Recession time in the economy the country of operation

3. Cost of employment advantages in the country of operation

Some of the type of competitive challenges MTV network international face by operating worldwide includes:

1. Adaptation to varying local cultures to draw the needed viewers

2. Transformation of the emerging technologies to meet and create an edge above other competitors in the local communities, regions, and the world at large.

A) What does it mean for a country to have a negative interest rate? What does it mean for borrowers?
B) Do some research and find countries that currently have a negative interest rate.
C) Why would a central bank lower the interest rate beyond zero?

Answers

A) When a country has a negative interest rate, it implies that the central bank, or the monetary authority of the country, has taken a stance that is intended to promote spending and investment.

B) Countries that currently have a negative interest rate are:Switzerland. -0.75 percentEuropean Central Bank (ECB) -0.50 percentDenmark -0.60 percentJapan -0.10 percentSweden -0.35 percent

C)  Lowering interest rates beyond zero serves as a stimulus for the economy, causing people to spend more money and businesses to invest more in capital projects.

A) When a country has a negative interest rate, it implies that the central bank, or the monetary authority of the country, has taken a stance that is intended to promote spending and investment. This is accomplished by creating a climate that encourages borrowers to borrow and lenders to lend.

Negative interest rates make it less expensive for businesses and individuals to borrow money, making it easier for them to invest in growth or make major purchases. As a result, consumption increases, and deflation, or a decrease in prices, can be reduced.

B) Countries that currently have a negative interest rate are:Switzerland. -0.75 percentEuropean Central Bank (ECB) -0.50 percentDenmark -0.60 percentJapan -0.10 percentSweden -0.35 percent

C) Lowering interest rates beyond zero serves as a stimulus for the economy, causing people to spend more money and businesses to invest more in capital projects. As a result, low-interest rates encourage borrowers to borrow more money, lowering borrowing costs and increasing spending.

This spending can help increase economic growth and reduce unemployment by putting more money in people's pockets and increasing demand for goods and services.

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stakeholder group that bears the responsibility to decide which goals an organization should pursue to most benefit stakeholders and how to make the most efficient use of resources to achieve those goals

Answers

Managers are the stakeholder group in charge of deciding which goals an institution should continue pursuing to advantage interested parties the much more and how to utilize the most effective resources to accomplish these objectives.

Managers must still be motivated and rewarded for working hard inside the greatest advantage of stockholders.

Employees are really the numerous thousands of individuals who are employed in an organization's different functions and divisions.

Customers are frequently considered to be the most crucial stakeholder group considering that if a corporation could perhaps entice people to purchase its product lines, it will fail.

Community refers to both physical locations such as towns or cities, as well as social social spheres such as immigrant communities where businesses are positioned.

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find the nominal annual rate of interest compounded monthly if $1200 accumulates to $1618.62 in years

Answers

Answer:

Nominal annual rate of interest(r) = 2.5% (Approx)

Explanation:

Given:

Present value (P) = $1,200

Future value (F) = $1,618.62.

Number of year = 1year = 12 months

Find:

Nominal annual rate of interest(r)

Computation:

Nominal annual rate of interest(r) = \(\sqrt[12]{\frac{1,618.62}{1,200} }-1\)

Nominal annual rate of interest(r) = \(\sqrt[12]{1.34885}-1\)

Nominal annual rate of interest(r) = 0.02525

Nominal annual rate of interest(r) = 2.5% (Approx)

who has better abs 1 or 2?

who has better abs 1 or 2?
who has better abs 1 or 2?

Answers

Answer:

1

Explanation:

They just look more... real???

Answer:

Lm.ao what

Explanation:

Ig the second one lol

Post-assessment
Question 2 of 10
Which of these is true about social signals?

Answers

The option which is always true about social signals is : "They may have different meanings across cultures."

What are social signals?

Social signals are interactions between social media users and the content you share on your website.

Below are some examples of social signals. Someone shared a link to a page on your site in a public Fac.  ebook post. The post will receive likes, comments and other shares. Social signals are interactions and engagement between people with posts on social media.

Social signals include: Fac.  ebook likes, comments and shares. Tw. itter likes, retw. eets, quotes and conversations.

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Full Question:

Although part of your question is missing, you might be referring to this full question:

Which of these is true about social signals?A. They are always clear and obvious.B. Only peers send them to each other.C. They tell you everything you need to know.D. They may have different meanings across cultures.

Please post about a time when your attitude made a positive difference.

Answers

Developing a positive mindset at work can help you achieve success. It has happened for me several times in my career.

One of the instances I'd like to tell is when I was vying for the position of manager in my workplace as an employee.

In a telecom company, I managed the sales department. I had been working there for 7 years with no success; three of the employees put in less time than I did yet managed to get the top position. I was demotivated by the thought that perhaps there is something I am not doing correctly when I repeatedly lost the post to them. Even though my sales figures were strong, luck evaded me in some way.

Since there had been no advancement, it had been ten years. Nonetheless, I never wavered from my commitment to keep trying. I consistently adhered to the fundamentals and worked to become a better seller. My sales started to rise considerably.

Ultimately, the figures were significant enough to turn the proper heads. Finally, I received a promotion, but guess what? It was to the position of Area Retail Head, which is much more important than Manager. While it took ten years, I am still happy with my accomplishments. It's still as delicious as it was before.

Therefore, being positive in all those years, not looking back or getting discouraged paid dividends and made a huge difference in my life.

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Hunter has just completed his first year of operation as a sole proprietor of a successful sporting goods store. There were
challenges but he was excited about getting to keep all the profits of the venture to himself.

A) Advantage of a sole proprietorship

B)Disadvantage of a sole proprietorship

Answers

Some of the advantages and disadvantages of sole proprietorship include:

Advantage  -  keep all the profits Disadvantage - personally liable for any debts

What are the advantages and disadvantages of sole proprietorship?

One of the advantages of a sole proprietorship is that the business owner gets to keep all the profits of the business for themselves. This is because the owner has complete control over the business and is not required to share the profits with any other partners or shareholders.

One of the disadvantages of a sole proprietorship is that the business owner is personally liable for any debts or legal issues that arise in the course of business.

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write a 5 minute oral presentation about any three types of shares​

Answers

Shares represent ownership in a company and provide investors with various rights and benefits.

In this oral presentation, explore three common types of shares: common shares, preferred shares, and treasury shares.

Common Shares: Common shares, also known as ordinary shares, are the most common type of shares held by investors. Owners of common shares have voting rights in the company's decision-making processes, such as electing the board of directors.Preferred Shares: Preferred shares are a type of equity that offers certain preferences over common shares. Preferred shareholders have a higher priority when it comes to receiving dividends.Treasury Shares: Treasury shares refer to shares that a company has repurchased from existing shareholders and holds in its own treasury. These shares are no longer considered outstanding and do not carry voting rights.

Thus, by comprehending these distinctions, investors can make informed decisions and navigate the complex world of stock ownership.

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Mary, Ellen, and Doug are co-workers. Mary frequently makes sexual comments to
Doug and comments on his physique. Doug seems to find this amusing, but Ellen
finds it offensive.
True or False: Ellen is not a victim of harassment because none of Mary's comments
are directed at her.

Answers

True "Ellen is not a victim of harassment because none of Mary's comments are directed at her." Option A

Who is a victim of harassment?

Generally, It is possible for anybody, regardless of factors such as race, color, age, religion, ancestry, or se/xual orientation, to be the target of harassment or discrimination.

People who are impacted by the harassment might be victims, bystanders, or even witnesses in certain instances.

All of these people are considered to be engaged. There are instances of discrimination and harassment that were not done intentionally.

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Philosopher T.M. Scanlon makes four points about why we should be concerned with economic inequality. What did you think of his arguments? Are there any you find convincing? Explain your position.

Answers

Answer : yes , i find the following scriptures by philosopher convincing:

T.M. Scanlon, a philosopher, has made several points about why we should be concerned with economic inequality.

Fairness and Desert: Scanlon argues that economic inequality is a concern because it can violate principles of fairness and desert. He suggests that individuals should be rewarded based on their contributions and efforts rather than arbitrary factors like birth circumstances. This perspective implies that extreme economic disparities can undermine fairness in society.

Democratic Equality: Scanlon contends that economic inequality can undermine democratic equality by allowing the wealthy to exert undue influence over political decisions, potentially distorting democratic processes. This argument highlights the potential threat to the principle of political equality when wealth disparities are significant.

Social and Economic Power: Scanlon argues that economic inequality can lead to the concentration of social and economic power in the hands of a few, creating disparities in opportunities and social mobility. This perspective suggests that unequal distribution of resources can limit equal access to education, healthcare, and other important social goods.

Social Cohesion and Shared Identity: Scanlon posits that extreme economic inequality can erode social cohesion and undermine the sense of shared identity within a society. When there is a significant gap between the rich and the poor, it can lead to social divisions, conflicts, and a sense of alienation among different groups.

The persuasiveness of these arguments may vary depending on an individual's beliefs, values, and political ideology. Some may find Scanlon's points compelling, as they highlight the potential negative consequences of economic inequality on fairness, democracy, social mobility, and societal cohesion. Others may have different perspectives, emphasizing the importance of individual freedom, market dynamics, and the potential benefits of incentives provided by economic inequality.

It's crucial to engage in thoughtful discussions and consider multiple viewpoints to foster a comprehensive understanding of the complex issue of economic inequality.

How do i get as much mony as bill gates todey?

Answers

Answer:

be very famous

Explanation:

be white
why do i need to have 20 letters

1. Do you think the minimum wage should be increased in California, as is proposed? Why or why not? Remember, many firms must give everyone raises when minimum wage increases to keep all their workers happy. 2. In your opinion, what was the original purpose of the minimum wage? Was it meant to be a living wage?

Answers

The original purpose of the minimum wage was to ensure that workers were paid a fair wage for their labor. In my opinion, the minimum wage should be increased in California, as it is an important tool for protecting workers and ensuring that they are paid a living wage. However, I understand that businesses must also be taken into consideration, as they may not be able to afford to give everyone raises when the minimum wage increases. Therefore, it is important to consider the impact of a minimum wage increase on businesses and the economy as a whole.

Wheat is one of the most important farm products in the United States. Many farmers grow wheat. Many companies buy wheat for breakfast cereals, bread, flour, and other products. Wheat is a commodity—the same product no matter who grows it. Information about wheat output and prices is widely available. In any given year, farmers may grow wheat or some other crop. Buyers may switch to other grains if wheat prices rise too high. Is this an example of perfect competition? Why or why not?

Answers

Yes, this is an example of perfect competition because there are many farmers growing wheat and many companies buying it. Wheat is a homogeneous product, meaning that it is the same no matter who grows it, and information about wheat output and prices is widely available.

This means that buyers have perfect information about the market and can easily switch to other grains if wheat prices rise too high. Additionally, there are no barriers to entry or exit for farmers or buyers, so new farmers and companies can easily enter the market and compete with existing ones.
Furthermore, since wheat is a commodity, the price is determined by the market forces of supply and demand. This means that no single farmer or company has control over the price, and they must all accept the market price. The market price reflects the marginal cost of production for each farmer, ensuring that resources are allocated efficiently.
In conclusion, the wheat market is a good example of perfect competition due to the large number of farmers and buyers, homogeneous product, perfect information, no barriers to entry or exit, and price determined by market forces.

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What contingency factors might affect the
planning a business managers have to
do?

Answers

The contingency factors that might affect the planning a business managers have to do includes:

Environmental Uncertainty.Organizational Level.Time limit.

What is a contingency factor?

It refers to the provision that the cost estimator makes to cover the unforeseeable expenses that the project may incur. Such expenses may result from factors such as unpredictable weather conditions, uncertainties within the project, incomplete design plans

In conclusion, the amount to be allotted for each contingency factor depends on the amount of detail in the project's design as well as its level of uncertainty.

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On 13 February, ATD Customs Pty Ltd provides a service to MJ Civil Pty Ltd with payment due
within 30 days. On ATD Customs' statement of financial position, the amount owed by MJ Civil
will be recorded as:
services income.
an account payable.
an account receivable.
a prepayment.

Answers

Based on the information given  the amount owed by MJ Civil will be recorded as: an account receivable.

What is account receivable?

Account receivable is the money a company is yet to receive from their client or customers for rendering or providing service to the clients.

Based on the given scenario on ATD Customs' statement of financial position, the amount owed by MJ Civil will be recorded as account receivable because the payment is not yet due but will be due within 30 days.

Inconclusion the amount owed by MJ Civil will be recorded as: an account receivable.

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With total reserves of $50,000 and a required
reserve ratio of 10 percent, potential
deposit creation for the banking
system is equal to :
O $20,000
O $50,000
O $80,000
O $300,000

Answers

With total reserves of $50,000 and a required reserve ratio of 10 percent, potential deposit creation for the banking system is equal to $300,000. The correct option is d.

It required reserves = transaction deposits * required reserve ratio

=200000*0.1=20000

Excess reserves =total reserves -required reserves =50000-20000

=30000

Money multiplier =1/required reserve ratio =1/0.1=10

Potential deposit creation =excess reserves * multiplier =30000*10=300000

It is $300,000.

The reserve ratio is the percentage of reservable liabilities the advertisement banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio. The reserve requirement is the minimum amount of reserves which a bank must hold, and it is sometimes used interchangeably with the reserve ratio.

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Question 6 of 10
One advantage of a long-term loan compared to a short-term loan is that a
long-term loan
A. does not require the borrower to have a good credit score,
B. can be paid off in full without the borrower paying any interest.
C. allows a person to borrow more money at a lower interest rate,
D. does not force the borrower to make payments every month,
SUBMIT

Answers

One advantage of a long-term loan compared to a short-term loan is that a long-term loan allows a person to borrow more money at a lower interest rate. Long-term loans typically have a longer repayment period, which spreads out the principal amount over a greater number of months or years.OPtion c

As a result, the monthly payments are lower compared to a short-term loan. This lower monthly payment makes it easier for individuals to manage their finances and allocate funds towards other expenses'Additionally, long-term loans often come with lower interest rates compared to short-term loans. Lenders are more willing to offer competitive interest rates for long-term loans because they have a longer period to earn interest on the loan.

This allows borrowers to save money in interest payments over the life of the loan.In summary, a long-term loan provides the advantage of enabling individuals to borrow more money while enjoying lower monthly payments and favorable interest rates.

It offers greater flexibility and affordability, making it an attractive option for those who require a larger loan amount and prefer a longer repayment period.Option c

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Which of the following are characteristics of a limit order?

Answers

Answer:

A limit order is an order to buy or sell a stock at a specific price or better. There are several characteristics of a limit order:

A limit order is not executed immediately, but is instead placed on the order book to be executed when the stock's price reaches the specified limit price or better.

A limit order allows the trader to specify the maximum price they are willing to pay for a stock (if buying) or the minimum price they are willing to accept for a stock (if selling).

A limit order ensures that the trader will not pay more than the specified price (if buying) or receive less than the specified price (if selling).

A limit order may not be executed if the stock's price never reaches the specified limit price.

A limit order can be placed for a specified duration, such as a day, a week, or until it is cancelled by the trader.

A limit order may also be used to open or close a position in a margin account.

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.


Date Transactions Units Unit Cost Total Cost
October 1 Beginning inventory 6 $ 790 $ 4,740
October 4 Sale 4
October 10 Purchase 5 800 4,000
October 13 Sale 3
October 20 Purchase 4 810 3,240
October 28 Sale 7
October 30 Purchase 8 820 6,560
$ 18,540
3. Using LIFO, calculate ending inventory and cost of goods sold at October 31

Answers

The cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.

The LIFO method (last-in, first-out) of inventory valuation requires that the most recent purchases of inventory be used first in the cost of products sold and ending inventory calculations. The ending inventory and cost of products sold at the end of October will be calculated using the LIFO method, based on the data given in the table.Based on the data given, the total units sold is 14, and the total units purchased is 17. Here's how to calculate the ending inventory and cost of products sold using the LIFO method:Step 1: The last purchase of 8 units at a cost of $820 each on October 30 is deducted from the inventory count, leaving 9 units.Step 2: The previous purchase of 4 units at a cost of $810 each on October 20 is deducted from the inventory count, leaving 5 units.Step 3: The next purchase of 5 units at a cost of $800 each on October 10 is deducted from the inventory count, leaving 0 units.Step 4: Based on the LIFO method, the cost of the ending inventory is the sum of the cost of the oldest units remaining in stock, which is 4 units at a cost of $790 each on October 1, totaling $3,160.Step 5: Based on the LIFO method, the cost of goods sold (COGS) is calculated by adding the total cost of units sold, which is 14 units at a cost of $820 each on October 30, 4 units at a cost of $810 each on October 20, and 5 units at a cost of $800 each on October 10, totaling $17,260.Therefore, the cost of goods sold (COGS) was $17,260, and the ending inventory was $3,160 using the LIFO method.

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