Margetis Inc

question 19

Multiple Choice

Margetis Inc.carries an average inventory of $1,000,000.Its annual sales are $10 million,and its receivables conversion period is twice as long as its inventory conversion period.The firm buys on terms of net 30 days,and it pays on time.Its new CFO wants to decrease the cash conversion cycle by 10 days,based on a 365-day year.He believes he can reduce the average inventory to $863,000 with no effect on sales.By how much must the firm also reduce its accounts receivable to meet its goal of a 10-day reduction in the cash conversion cycle?

• A)$0
• B)$101,900
• C)$136,986
• D)$333,520

Identify the conditions for a firm's short-run and long-run equilibrium in perfect competition.

Explain the role of marginal cost in a firm’s decision-making process.

Determine the shut-down price and break-even price for firms.

Understand the assumptions underlying the model of perfect competition.

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Definitions:

Information Register

The capacity for storing information temporarily in the mind, playing a critical role in decision-making and other cognitive processes.

Memory

The ability of the mind to store and recall information, experiences, images, or sensations.

Sensed

Perceived or felt through any of the senses, such as sight, hearing, touch, taste, or smell, often implying a degree of intuition or awareness.

Muscle Tremors

Involuntary, rhythmic muscle contractions leading to shaking movements in one or more parts of the body.