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.
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.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 10P
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Question
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
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