Tim Smith is​ concerned: He notes that despite an increase in sales over 2019​, 2020 operating income has actually declined under absorption costing. Explain how this occurred. Under absorption​ costing, operating income is a function of production. During 2020​, Alderman experienced a large decrease in inventory levels as a result of decreased production. The end result was that much of 2020's beginning inventory passed through cost of goods sold in 2020.

Amathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. thus, if mexico's real gdp per person is growing at 7 percent per year, it will take about 10 years(=70/7) to double. apply the rule of 70 to solve the following problem. real gdp per person in mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the u.s. if real gdp per person in mexico grows at the rate of 5 percent per year: how long will it take mexico's real gdp per person to reach the level that the united states was at in 2005? (hint: how many times would mexico's 2005 real gdp per person have to double to reach the u.s.'s 2005 real gdp per person?

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?

Emery pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. emery uses 825 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $48 per order. the cost schedules of two suppliers are as follows: vendor 1 vendor 2 quantity price/lb quantity price/lb 1-499 $17 1-399 $17.10 500-999 $16.75 400-799 $16.85 1000+ $16.50 800-1199 $16.60 1200+ $16.25 (a) what is the economic order quantity for each supplier? (b) what quantity should be ordered and which supplier should be used? (c) the total cost for the most economic order sire is $