Financial statements of a manufacturing firm

The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:

Purchased $230,000 of materials.
Used $165,600 of direct materials in production.
Incurred $414,000 of direct labor wages.
Incurred $165,600 of factory overhead.
Transferred $699,200 of work in process to finished goods.
Sold goods for $1,104,000.
Sold goods with a cost of $621,000.
Incurred $197,800 of selling expense.
Incurred $115,000 of administrative expense.

Answers

Answer 1

The Financial Statements of Sorensen Manufacturing Company for the first month of its operation are as follows:

Sorensen Manufacturing Company

Income Statement

For the month of January

Sales Revenue                    $1,104,000

Cost of goods sold                  621,000

Gross profit                           $483,000

Selling expenses  $197,800

Administrative exp. 115,000  312,800

Net income                         $170,200

Sorensen Manufacturing Company

Balance Sheet

As of January 31

Accounts Receivable/Cash        $1,104,000

Inventory:

Raw materials            $64,000

Work in process         165,600

Finished goods            78,200    $307,800

Total assets                                 $1,411,800

Liabilities:

Accounts payable                       $230,000

Factory Overhead payable             65,600

Selling expenses                            197,800

Administrative expenses                115,000

Total liabilities                             $608,400

Equity:

Net income                                   $170,200

Common Stock                           $633,200

Total liabilities and equity         $1,411,800

Data and Analysis:

Raw materials:

Purchases or raw materials = $230,000

Direct materials used = $165,600

Ending inventory of raw materials = $64,400

Work in Process:

Direct materials used = $165,600

Direct labor = $414,000

Factory overhead = $165,600

Total production cost = $745,200

Finished goods =           $699,200

Work in process inventory = $46,000

Finished goods:

Work in process = $699,200

Cost of goods sold = $621,000

Finished goods inventory = $78,200

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Related Questions

Good note-taking requires that you write down every word spoken by the instructor_
True or False

Answers

Answer:

False.

Explanation:

I think it depends on the instructor. Some can't explain very well and tend to talk relatively fast to get everything done on time. Some people can't write as fast and for good note-taking I suggest write down the things you know you will probably have trouble with overtime and should word things the way you can understand it. It's good if the instructor tends to make sense in your brain, but it's just not relatively possible unless they repeat it or go slower countless times.

Answer:   FALSE

Explanation:

YUP THATS RIGHT

Dust Jackets is a used bookstore. For decades they have bought and sold books only through their brick and mortar shop, but declining sales and the rise of online culture have convinced the owner to create a website and begin doing business online as well. As a member of Dust Jackets’ HR team, you will be hiring new resources for a number of different positions to help the store make the transition to online business. The new e-store will need coders to create the online shop, customer service representatives to take calls, warehouse staff to handle shipping and storage, and additional professionals to evaluate and price books.


You will prepare to create your recruitment plan by reviewing these open positions, and evaluating the availability of talent to fill them.

Answers

The recruitment plan to evaluate the availability of talent to fill them.for the following open positions: coders, customer service representative, and warehouse staff are:

Past job related experienceNumber of years of experienceJob qualification

The three job characteristics the HR professional for Dust jackets need to identify about the open position in order to fill them are:

Organization skillsBook keeping and recordingPoliteness

The positions which can be filled internally is "warehouse staff to handle shipping and storage".

The position for which the HR professional might consider hiring contract workers is "customer service representatives to take calls".

The steps that should be taken to stay in compliance with equal employment opportunity commission(EEOC) when recruiting is to give equal opportunity to employees

The four areas the HR professional should make sure not to discriminate against are:

AgeGenderPhysical disabilityEthnicity

What the HR professional should be sure to make available if you hire someone with disability is "elevators and health care" to enhance their working condition.

Who is an HR professional?

An human resource professional (HR) is an individual responsible for welfare and working condition of employees in an organization which includes: hiring, firing, payment etc

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Answer:

Hope this helps!

How is net pay different from gross pay

Answers

Answer: It's different because one is the amount of money before you get some taken out.

Explanation: Net pay is the money after some is taken out, I think ( I don't really remember to be honest sorry lol)

Gross is the full amount paid by the employer
Net Pay is the amount that the employee receives in his or her paycheck

Which question can help us avoid a decision that would injure our self-esteem?

Multiple Choice
a. Is it legal?
b. Is it balanced?
c. How will it make me feel about myself?
d. How can I avoid taking the blame?

Answers

The question that can help us avoid a decision that would injure our self-esteem would be "How can I avoid taking the blame" Option D

This is further explained below.

What is self-esteem?

Generally, Confidence in one's own capabilities or worth is an essential component of healthy self-esteem.

Beliefs about oneself and one's emotional states, such as victory, despair, pride, and shame, are all included in what is referred to as self-esteem.

In conclusion, Asking ourselves, "How can I avoid accepting the blame?" is a question that may guide us away from making a choice that would be detrimental to our sense of self-worth. The D Option

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Which model of communication best best accounts for the process and give reasons

Answers

The best-acknowledged communication models are the transmitter-receiver model according to Shannon & Weaver, the four-ear version in line with Schulz von Thun, and the iceberg version consistent with Watzlawick.

The interactive communication models are the handiest manner to provide an explanation for impersonal -way communication procedures.

The target audience appreciates it as each event is worried. This model is effective as it gives more whole expertise of a context related to relational, social, or cultural identities. It's far favored as it gives a threat to both events.

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(30 Marks)
a)Management of GENADE Travel and Tour has identified two groups of
individuals that would be interested in the vacation package consisting of room and
board and/or entertainment. The maximum amount that group 1 is willing to pay
for room and board is GHC 2500 and for entertainment is GHC 500. For
group 2,
the maximum amount they are willing to pay for room and board is GHC 1800 and
for entertainment is GHC 750. Although GENADE Travel and Tour is not able to
identify members of either group, it does know that each group values the
components of the package differently. Assuming there are an equal number of
members in each group and that the total membership in each group is a single
individual. If the marginal cost of providing the service. (room and board and/or
entertainment) to each group is GHC 1000.

Answers

The marginal cost of providing the service, For room and board GHC = 1800 And For entertainment GHC500.

If the management is not able to identify the group of customers, it should charge the minimum price customers are willing to pay as it does not lead to losing a market share and helps to compete in the market without identifying the group of customers.  But this strategy is suitable only if the management is able to recover its marginal cost.

The maximum price for room and board = GHC 2500

The maximum price for entertainment = GHC 750

The minimum price for room and board = GHC 1800

The minimum price for entertainment = GHC500

Marginal cost = GHC1000

The minimum price customers are willing to pay = is GHC(1800 + 500).

Thus, The marginal cost of providing the service

For room and board GHC = 1800

And For entertainment GHC500

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In what way can a manufacturer of consumer durables seek to gain a better understanding of it's marketing environment?

Answers

The better way a manufacturer of consumer durables seek to gain a better understanding of its marketing environment is through the media. The media can document all the problems surrounding stores and manufactures via searching at how they're doing economically.

A customer is a person or a collection who intends to reserve, orders, or makes use of bought items, merchandise, or services typically for personal, social, circle of relatives, family and similar wishes, not at once related to entrepreneurial or commercial enterprise activities.

Purchasers constitute the top trophic levels. In contrast to manufacturers, they cannot make their own food. To get energy, they devour plant life or different animals, while some consume each. Scientists distinguish among numerous sorts of clients. Number one clients make up the second trophic degree.

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Which of the following would be considered a "desired competency" for a candidate for a graphic design position?
A. Experience with graphic design in a corporate setting
B. Skills in drawing and design
C. Knowledge of graphic design software
D. Coursework and experience in brand development

Answers

The statement that  would be considered a "desired competency" for a candidate for a graphic design position is: B. Skills in drawing and design.

What is desired competency?

Desired competency can be defined as those skills and qualities that a person posses that will enables them to succeed in their choose field or career.

A person with a desirable competency must be efficient and must have the necessary skills that an employer or recruiter expected them to posses.

Therefore the statement that  would be considered a "desired competency" for a candidate for a graphic design position is: B. Skills in drawing and design.

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Imagine you have been hired as the first HR manager at a small start-up business. You learn that the owner, who interviews all job candidates, believes that structured, skills-focused interview questions are "boring" and "not cool How would you advise this person about the selection process?

Answers

Answer:

Explanation:

Answer.

What is a selection process?

A selection process involves screening, selection, hiring of a candidate who could fulfil the job requirements and accomplish the given tasks and duties in the organization.

This selection process may involve different types of interviews like structured, skills-focused, unstructured which are used by different interviewers depending upon the needs of the job and their organizations.

How a selection process can be taken up under the given scenario?

Selection process of every organization differs from another and selection of interview type and whole process of selection also differs from one interviewer to another.

This states selection process and interview type are both subjective in nature and there is no fixed rule which applies over here.

But in order to conduct a selection process an interviewer must follow some important points which includes-

1. Nature of job

The most important thing which comes in a selection process is studying the nature of the job. If the interviewer does not know what is the job all about. how will he conduct the selection process?

Without knowing about the nature of the job and its requirements, interviewer cannot decide the correct interview pattern and methodologies to be followed during the whole process, which means understanding the nature of job is very important.

2. Type of organization

Another important thing to be kept in mind is understanding and analysing the type of organization, interviewer is conducting the selection process.

Example.

A manufacturing company may follow different selection process when compared with a company engaged in providing customer services.

3. Be situational

An interviewer must be situational and respond to the things as they arise. He must have innate abilities to analyse the situations and act accordingly so that a best candidate is selected and organization's motive gets fulfilled.

Example.

Every candidate has his/her own personality and way of thinking and therefore this must be analysed well by the interviewer as he cannot follow same interview approach with everyone and therefore he must understand the behavior of the candidate, see the other job requirements and accordingly ask questions which are valid.

Conclusion

Selection process is a subjective concept which means no organization can apply the same set of procedures and rules in a uniform manner and adopt a standardised method and process of selecting the candidates.

But there are some important considerations which an interviwer must keep in mind during the selection process and hire the best choice for the company.

Producer surplus is shown graphically as the area

Answers

Producer surplus is shown graphically as the area under the demand curve and above the supply curve.

What is producer surplus?

Producer surplus is the difference between the least price a producer is willing to sell his good or service and the price of the good. The higher the price of the good, the higher producer surplus is.

Producer surplus = price of the good - least price the seller is willing to sell his good or service.

For example, the least price a seller is willing to sell a good is $1000. The price of the good is $2000. The producer surplus is $1000 (2000 - 1000).

The demand curve shows the relationship between price and quantity demanded. The supply curve shows the relationship between price and quantity supplied. The producer surplus is the area above the supply curve but the area below the demand curve.

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The two factors to consider when assigning a priority level to a to-do item are:

A) ease and effort
B) time and effort
C) time and cost
D) importance and urgency

Answers

Answer: D

Explanation: The most important and urgent things need to be done first and then the rest can be done later

Which of the following is not a key aspect of training and development, rather it is a focus of OD?

Question 10 options:

learning is the sole objective, such as a new skill, system, or procedure


systemic organizational change efforts


programs developed for large audiences


needs assessment, course development, technology usage, and on-the-job training

Answers

Systemic organizational change efforts are not a key aspect of training and development, rather it is a focus of OD. Thus, option B is correct.

What is training?

Training can be defined as the part where the physical, as well as theoretical descriptions of things, are being given to the people.

The systematic organizational tool does not provide training and development. As in the change, the person is more acquainted with the goals and the power of the people.

It entails developing and implementing company policies, institutions, processes, and technology to address change in the company's setting and other use in the wider world. Therefore, option B is the correct option.

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Adam's Apple Orchard Inc. (Adam's) deploys a fleet of 10 trucks to transport apples and other fruits from its growing fields to a central inspection and processing station. Adam's uses the services of Safety Inspection and Repair Company (SIRC) to maintain its fleet. Although each vehicle was typically scheduled for a maintenance check every six months, recent cost-cutting measures at Adam's resulted in a change to once-per-year inspection and maintenance. Last month, one of Adam's drivers was on his route when an intoxicated pedestrian stumbled onto the roadway. Although the driver had a clear view of the pedestrian, the brakes in the truck failed, and the pedestrian suffered injuries from the collision. The evidence revealed that the truck had been inspected on the previous day and found to need new brakes. A mechanic trainee, who was not yet certified installed the new brakes incorrectly and violated state safety inspection standards.

Answers

Based on the fact that the a mechanic trainee without certification was allowed to install the new brakes, the possible tortfeasor in this case are E. I, II and IV.

Who is the tortfeasor in this case?

The tortfeasor refers to the person who is responsible for the action that caused injury to another person in a tort case.

In this instance, there will be three tortfeasors with the first being the mechanic trainee. The trainee knew that they were not certified and still went ahead to violate state safety inspection standards so they are liable.

Safety Inspection and Repair Company (SIRC) will also take responsibility for allowing the mechanic trainee to install the breaks when they should have exercised better oversight.

Finally, Adams Apple Orchard knew the breaks were not installed correctly and still drove the truck. There were grossly negligent in this instance and so will be responsible as well.

Rest of the question and options:

Adam’s driver knew the brakes were incorrectly installed and chose to drive the truck anyway to meet delivery deadlines.

Which of the following is a possible tortfeasor in this case?

I. Adams Apple Orchard.

II. Safety Inspection Repair Company

III. The pedestrian.

IV. The mechanic trainee.

I only.IV only.III only.I, II and IV.II and III.

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A bondholder purchased an 8 percent coupon, $1,000 par three-year bond at a 7 percent yield. Interest rates then immediately fell to 6 percent and his bond was called at a price of $1,040. Did the call help or hurt the bondholder?

Answers

The bondholders will help in the calling as it will give them a benefit of  0.40%.

Who is a bondholder?

A bondholder can be defined as a person who invests the in some sir kind of security, which is typically issued by some kind of organization or by a government.

The formula for the Future Price will be:

Future Price = Price Value x ( 1 + Rate ) No. of years

= 1040 x ( 1 + 6% )³

= 1040 x 1.191016

= 1238.67

The Price of the bond after three years is $1,274.04

Future Price = Price Value x ( 1 + Rate ) No. of years

1238.67 = 1000 x ( 1 + r )³

1238.67/1000 = ( 1 + r ) ³

0.123867= ( 1 + r ) ³

r = 0.074 or 7.40%

The rate of return is 7.40%

=  7.40% - 7 %

= 0.40%

Therefore, he was helped from the call as he earned 0.40% more than the rate of return.

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emmit is a military verterean who requires many abscences for medical reasons. his boss at betri famrns has determined that he reduce the number of ick days unless he provides his medical history. which law(s) protect him

Answers

Employee sick leave act protect him. Emmit can use this law. So the boss only check his medical record and not do anything else.

What is Illinois employee sick leave Act?

A State statute known as the Employee Sick Leave Act (Public Act 99-0841) (the "Act") requires companies to permit employees to use at least a portion of the sick leave time that is already theirs, under specific existing workplace practices, to care for specific relatives.

What are the reasons for sick leave?

The time off that an employee may take for personal or family illness is known as sick leave (as specified under law). When an employee is unable to work due to illness, they are paid throughout their sick leave.

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The amount you pay each time you visit a health care provider or have a prescription filled is called a

Answers

The amount that a person pays when they visit health care providers or have their prescription filled is a Copayment.

What is a copayment?

A copayment refers to the amount that people pay to their healthcare providers out of their pocket when they go to get services such as having their prescriptions filled.

Copayments are usually fixed amounts that depend on the kind of care you receive from your healthcare provider.

In conclusion, that amount that is paid by a person when they visit a health care provider or go to fill up their prescription is a Copayment.

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Week 2 Forum
Week 2 topic - Debits vs. Credits and what happens to an account when entries are changed.
Hide Full Description
This is the discussion forum topic for Week 2:
Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh
Stallings, the CEO, who was something of a celebrity in the community. The CEO stood to earn a
substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh's elite social
circle; he boasted to Hugh that he knew some accounting tricks that could increase company income by
simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy
changed the debits from "rent expense" to "prepaid rent" on several entries. Later, Hugh got his bonus,
and the deviations were never discovered.
Requirements
How did the change in the journal entries affect the net income of the company at year-end?
Who gained and who lost as a result of these actions?

Answers

You could struggle as a business owner to know when to use a debit and when to utilize a debits and credits in accounting. Even so, you could be unsure of their relevance.

You can check that you're following the accounting equation by using debits and credits. The accounting equation is:

Assets = Liabilities + Equity

Any transaction that is recorded includes at least two accounts in double-entry accounting, with one account being debits and credits and the other being credited. To keep your accounts in balance, your debits and credits must always equal one another. Debits are always entered on the left side of the entry, while credits are always entered on the right.

Debits and credits are the foundation of precise accounting for a business, whether you're operating a sole proprietorship or a publicly traded enterprise. In contrast to credits, debits result in a gain in asset or expense accounts and a drop in liability accounts. Recording these transactions can get more difficult as your business expands, but it's important to get it right to keep your books balanced and monitor your organization's progress.

The double-entry accounting method is utilized by the majority of organizations, including small firms and sole proprietorships. This is because tracking debits and credits every business transaction in at least two accounts enables a more dynamic financial picture.

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•Who manages Eskom ?

Answers

Answer:

Mr.Andre de Ruyter is the Chief Executive (GCE) of Eskom

Q3. Given the demand and
Supply functions for product z: 800-20PZ and 100+10PZ
A. Determine the price
and
Quantity at which the marke
for Product z is in equilibrium
and show graphically

Answers

The equilibrium price that we have here is 23.3 while the equilibrium quantity is 333.3

How to solve for equilibrium price and quantity

In order to get the equilibrium price and the quantity we would have

800-20PZ = 100+10PZ

We would have to collect the like terms

800 - 100 = 10 pz + 20 pz

700 = 30 pz

To get the price of z we have to divide through by 30

700 / 30 = pz

23.3 = Pz

Next we have to find the equilibrium quantity

100 + 10PZ

100 + 10 x 23.3

100 + 233.3

= 333.3

Hence the equilibrium price that we have here is 23.3 while the equilibrium quantity is 333.3.

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If you hire a tax preparer, then you don't have to supply all accurate and complete tax information.
T True
OF False

Answers

The statement, if you hire a tax preparer, then you don't have to supply all accurate and complete tax information, is true.

Just knowing that a professional tax preparer is handling your taxes reduces stress. As, making mistakes here can become very costly. In terms of missed deductions or triggering an IRS letter or an audit, a tax professional can help eliminate errors by ensuring that your returns are prepared correctly.

So anyone with a relatively complicated tax situation can thus benefit from hiring a professional. Suppose if you own a business and have lots of different expenses to deduct, it may be worth paying someone who can help you in navigating your return.

Hence, option A is correct.

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Which of the following transactions would be reported on the statement of changes in stockholders equity?
Multiple Choice
Borrowed $5,000 cash from the bank
Paid a $100 cash dividend to the owners.
Purchased land for $2,000 cast
Paid $1,500 cash to pay off a portion of its note payable.

Answers

Paid investors a $100 cash dividend. The right answer is option B. Cash dividends declared will be subtracted from retained earnings and reduce total stockholder equity.

Equity held by shareholders refers to the sum that a company's founders have contributed to the enterprise. This covers the funds they have personally invested as well as the total amount of profits the business has generated and reinvested since its establishment.

The Stockholders Equity Formula: What Is It?

The following formula is used to determine shareholders' equity: Stockholder's Equity is equal to the sum of all of the company's assets less all of its liabilities. Total Assets minus Total Liabilities equals Stockholder's Equity.

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Please discuss why an organization might choose one MNE business strategy over another. Does the strategy ever change? Explain.

Answers

Not all multinational corporations employ the same business strategy due to the range of sorts of multinational companies, which vary in industry, size, and other factors such as location, products offered, etc.

How to explain MNE?

Business professionals frequently need to find strategies to adapt to the cultures and civilizations in which they operate and conduct business in order to achieve sustained global business development.

The advantage of multinational enterprises (MNEs) as an institutional form for regulating cross-border transactions, the chance to integrate knowledge from various geographic sources, and the necessity of striking a balance between efficiency, flexibility, and learning priorities are all discussed in the MNEs' strategy.

Therefore, it should be noted that multinational corporations employ the same business strategy due to the range of sorts of multinational companies, which vary in industry, size, and other factors such as location, products offered, etc.

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What business-environment factors needs to be monitored and
assessed in order to deal with corporate tax rates?

Answers

The business-environment factors that needs to be monitored and assessed in order to deal with corporate tax rates are:

corporate culture and valuesleadershipproduct qualityfinancial policies.

What is an environmental forces?

These are forces that shapes a companies. It to those factors from outside the organization that influences entrepreneurs to adjust their business organization accordingly not to affect achieving the firm's goal. These factors are limited to societal, technological, environmental (natural atmosphere), economic and political forces.

In conclusion, the factors that needs to be monitored and assessed in order to deal with corporate tax rates are corporate culture and values, leadership, product quality, financial policies etc.

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Fill in the blanks in the table below:
Year
2005
2010
2015
Nominal Value
275
500
Real Value
250
300
CPI (times 100)
130
125

Answers

Answer:

Nominal :25

Real value :40

CIP:20

Economists assume people choose something when its expected costs are less than its...
O Required Maintenance
O Anticipated benefits
O Working Life
O Chief competitors

Answers

When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' behavior.

In order to build a model that they can control because economists are unable to isolate certain factors in the real world, they must make assumptions. Its main objective is to describe and examine the prices and volume transacted in a market that is competitive. Equations in the model calculate supply and demand levels in relation to price and other factors (for example, income). Which analysis of economic theory holds up the best? predicting with the help of the scientific way of thinking (developing a theory from basic principles and testing it against events in the real world.) The following is an illustration of a normative economic statement: "The government should offer universal access to basic healthcare." As you One might infer from this that it is value-based, based on one's own perspective, and meets the criteria for what "should" be.

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An American worker can produce either 5 cars or 8 tons of grain a year. A Japanese worker can produce either 4 cars or 9 tons of grain a year. To keep things simple, assume that each country has 100 million workers.

Answers

Based on the cars or tons of grain that an American worker can produce and the quantity a Japanese worker can produce, the number of workers needed to make one car or 1 ton of grain in the U.S. and Japan is:

                                                           Workers Needed to Make

                                                           1 car               1 ton of Grain

United States                                      1/5                         1/8

Japan                                                   1/4                          1/9

How many workers are required?

An American Worker can produce 5 cars or 8 tons of grain a year. To produce 1 car therefore:

5 cars : 1 worker

1 car   : x workers

= 1/5 workers per car

This means that the workers needed for 1 ton of grain is:

= 1/8 workers

In Japan, a worker can produce 4 cars or 9 tons of grain a year. Number of workers needed to produce one car:

4 cars : 1 worker

1 car :  x workers

= 1 / 4 workers

Number of workers per ton of grain:

= 1 / 9 workers

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Is technology by itself enough to ensure high quality customer service

Answers

Yes, technology without anyone else's say enough to guarantee top-notch customer service since Customer service is the arrangement of service to customers previously, during, and after a buy. Customer service is a progression of exercises intended to improve customer fulfillment.

Technology also can be defined as the department of information that caters to the creation and use of technical means and their courting with society and the surroundings, using engineering, implementation, and natural science. There are 3 kinds of technological innovations which includes the Semi- Radical, Incremental, and Disruptive. This kind of technology normally relies on current expertise about technology.

Data technology is important in our lives because it enables us to cope with regular dynamic things. technology offers diverse tools to reinforce development and exchange records. each of these items is the goal of IT to make duties less difficult and to resolve many issues.

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In which country and economic system are ALL the decisions about
production, consumption, business creation, exchange rates, and the
overall economy made by the government?

Answers

A socialism is an economic system in which all the decisions about production, consumption, business creation, exchange rates, and the overall economy are made by the government. An example of the country with socialism as the economic system includes North Korea, Soviet Union.

What is a socialism?

It refers to the political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

This system calls for a public ownership rather than a private ownership or control of property and natural resources.

Therefore, the socialism is an economic system in which all the decisions about production, consumption, business creation, exchange rates, and the overall economy are made by the government.

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Which of the following types of culture has roots that mean temporally or specialized

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The answer is Adhocracy culture

A craft shop buys stuffed animals with a list price of $7,000. If the wholesaler offers trade discounts of 35/35/35, find the net price factor.
• 0.04288
• 0.21600
• 0.27463
• 0.34300

Answers

Based on the wholesale trade discounts offered by the seller to the craft shop that buys stuffed animals, the net price factor is 0.27463

What is the net price factor?

First, find the difference between 100% and the trade discounts:

= 100% - 35%

= 65%

The difference is 65/65/65.

To find the net price factor, multiply these differences:

= 0.65 x 0.65 x 0.65

= 0.274625

= 0.27463

In conclusion, the net price factor based on the trade discounts offered of 35/5/35 and a list price of $7,000 is 0.27463.

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