You are evaluating a potential investment in equipment. The equipment's basic price is $176,000, and shipping costs will be $3,500. It will cost another $17,600 to modify it for special use by your firm, and an additional $8,800 to install it. The equipment falls in the MACRS 3-year class that allows depreciation of 33% the first year, 45% the second year, 15% the third year, and 7% the fourth year. You expect to sell the equipment for 30,900 at the end of three years. The equipment is expected to generate revenues of $151,000 per year with annual operating costs of $77,000. The firm's marginal tax rate is 35.0%. What is the after-tax operating cash flow for year 1

Answers

Answer 1

Answer:

$71,881.45

Explanation:

The after-tax operating cash flow for year 1 is simply the net income plus depreciation for year 1 since depreciation needs to be added back to net income as it is not a cash outflow in the actual sense.

net income=(revenue-annual operating costs-depreciation)*(1-tax rate)

revenue=$151,000

annual operating costs=$77,000

depreciation expense for year 1=($176,000+$3,500+$17,600+$8,800)*33%

depreciation expense for year 1=$67,947.00

tax rate=35.0%

net income=($151,000-$77,000-$67,947)*(1-35%)

net income=$3,934.45  

after-tax operating cash flow for year 1=$3,934.45+$67,947.00

after-tax operating cash flow for year 1= $71,881.45  


Related Questions

What is meant by the phrase nonverbal communication and what form of nonverbal communication do you think is misunderstood the most by people? in a 200 word​

Answers

Answer:

See the explanation below.

Explanation:

Nonverbal communication involves the transfer of messages or signals utilizing nonverbal platforms such as eye contact, facial expressions, gestures, posture, and body language. It entails the utilization of social cues, kinesics, distance, physical environments/appearance, voice, and touch, among other things.

I think that gesture is the most misinterpreted form of nonverbal communication. Gesture refers to the movement of a body component, especially the hand or the head, to convey a message or meaning.

Gesture is the most misinterpreted form of nonverbal communication due to the fact that the meaning of particular gestures varies greatly throughout cultures. While the hand-held “OK” sign, for example, normally sends a positive message in English-speaking countries, it is deemed offensive in Germany, Russia, and Brazil. As a result, it's critical to be cautious about how you utilize gestures in order to avoid misinterpretation.

XYZ Company operates on a remote interstate highway. It provides premium services to truckers en route to remote locations. It has numerous competitors that offer lower prices, but it meets the demands of discerning clients with its high-quality services. Therefore, XYZ Company can be characterized as a firm with a: a. narrow market appeal to a price-sensitive niche that demands quality, service, and value. b. broadly targeted scope and price points aimed for the masses. c. value proposition based on differentiation and a niche clientele that is willing to pay for added value. d. niche clientele and business model that meets the needs of truckers in general.

Answers

Answer:

c. value proposition based on differentiation and a niche clientele that is willing to pay for added value.

Explanation:

Since in the question it is mentioned that XYZ company provides the premium service also they have various number of competitors that offered the customer at less prices but at the same time this company meet the customer demand having the high quality service so here the value should be proportioned that depend upon on the differentiation also it would be pay for adding the value

Hence, the option c is correct

You bought a bond five years ago for $804 per bond. The bond is now selling for $770. It also paid $55 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places. (e.g., 32.16))

Answers

Answer:

the rate of return is 6.09%

Explanation:

the computation of the realized rate of return earned on this bond is shown below:

Given that

NPER is 5

PMT is $55

PV is $804

FV is $770

The formula is shown below:

=RATE(NPER,PMT,-PV,FV,TYPE)

After applying the above formula, the rate of return is 6.09%

Supposed you have had 10 apples. You gave 4 apples to your friend for Christmas. What portion of the initial amount did you give away? (use similar formatting to the dollar amount, strictly decimals, no other signs or characters)

Answers

Answer:

The portion of the initial amount that was given away is:

= 0.40

Explanation:

a) Data and Calculations:

Number of apples available = 10

Number of those apples given to a friend for Christmas = 4

The portion given away = 4/10 = 0.4

This represents 40% of the whole.

b) The portion given away to the friend for Christmas is a proportion of the whole.  In this case, it represents just 40% of the 10 apples.  This means that only 60% or 0.60 of the original apples are still available or on hand because 40% had been given away.

Lay Perfect Pillow Company sells specialty pillows and accessories to customers. Its fiscal year ends on December 31. The following transactions occurred in the current year:
Purchased $250,000 of new pillow inventory; paid $90,000 in cash and owed the rest on account.
Paid employees $180,300 in wages for work during the year; an additional $3,700 for the current year's wages will be paid in January of the next year.
Sold pillows to customers for $750,000; received $500,000 in cash and customers owed the rest on account. The cost of the pillow inventory to Lay Perfect Pillow was $485,000.
Paid $17,200 cash for utilities for the year.
Received $70,000 from customers as deposits on orders of new pillows to be sold to the customers in January of the next year.
Received a $19,130 utilities bill for December of the current year that will be paid in January of the next year.
Complete the following statements
Cash Basis Income Statement Accrual Basis Income Statement
Statement Statement
Revenues Revenues
Cash Sales Sales to Customers
Customer Deposits
Expenses Expenses
Inventory Purchase Cost of Sales
Wages Paid Wages expense
Utilities paid Utilities expense
Net Income Net Income

Answers

Answer and Explanation:

The preparation of the following statement is

Cash Basis            Statement     Accrual Basis               Statement

Income Statement        Income Statement

Revenues                                         Revenues

Cash Sales             $500,000      Sales to Customers     $750,000

Customer Deposits $70,000  

Total                        $570,000       Total                             $750,000

Expenses                                           Expenses  

Inventory Purchase $90,000         Cost of Sales               $485,000

Wages Paid             $180,300         Wages expense         $184,000

Utilities paid             $17,200            Utilities expense         $19,130

Total                         $287,500         Total                             $688,130

Net Income               $282,500        Net Income                  $61,870

Each sneaker requires 2 hours of direct labor time. Direct labor wages average $15 per hour. Monthly overhead averages $10 per direct labor hour plus fixed overhead of $4,500. What is the direct labor cost budgeted for September

Answers

Answer:

the direct labor cost budgeted is $1,500,000

Explanation:

The computation of the direct labor cost budgeted is given below:

The Direct labor budget for September is

= September production × required no of hours × direct labor wage per hour

= 50,000 × 2hour × $15

= $1,500,000

hence, the direct labor cost budgeted is $1,500,000

Eve shops at Mrs. G's Grocery because it is located right near her place of work. Although Mrs. G's prices are higher than Walmart's, Eve is willing to pay more because she can easily pick up groceries on her way home from work. The convenience Eve received was well worth the extra money; this is an example of _______.

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Value.

b) Hedonic value.

c) Utilitarian value.

d) Perceived value.

And the correct answer is the option D: Perceived value.

Explanation:

To begin with, in the field of marketing the term known as "Perceived Value" refers to the type of value that the customer receives when comparing the product of the company with those of the competitors and seeing that he or she is willing to pay more for that product because of what the customer receives in exchange of it. In this case, Eve is willing to pay extra money due to the fact that she sees the convenience of close by store that allows her to not waste time and buy fast so that is a well example of perceived value.

The convenience that  Eve received was well worth the extra money, hence, it is an example of Perceived value.

In marketing, a Perceived Value refers to the type of value that the customer receives when comparing the product of the company with those of the competitors.

Hence, the convenience that  Eve received was well worth the extra money, hence, it is an example of Perceived value.

Read more about Perceived value

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The price of strawberries decreases from $4.10 to $2.50 per pound. When this happens, the amount of strawberries sold increases from 550 pounds to 600 pounds. What is the value of the gain in consumer surplus that occurred

Answers

Answer:

$80

Explanation:

Given that the value of the gain in consumer surplus is the value emanating from the purchase made at price less than the price the consumer is willing to pay. The value of consumer surplus rises as the price of a good falls and falls as the price of a good rises.

Hence, in this case, the price of strawberries decreases from $4.10 to $2.50 per pound. We have a value surplus of $1.6 per pound.

However, since the amount of strawberries sold increases from 550 pounds to 600 pounds we have a consumer surplus of 50 pounds.

Therefore, the total value of the gain in consumer surplus that occurred is $1.6 × 50 = $80.

Hence, the correct answer is $80

Even in these times of social media and digital content some of the old ways of promotion can still be effective. Identify two strengths and two weaknesses of each major advertising medium: newspapers, television, direct mail, radio, magazines, and outdoor display.

Answers

Answer:

Newspaper Advertising

STRENGHTS:

I. Wide reach/coverages

II. Cheap and easily affordable

WEAKNESS:

I. Can easily be destroyed

II. Iliterates can not be able to read its contents.

TELEVISION

STRENGHTS

I. Wider reach/coverage

II. Very attractive and understandable.

WEAKNESSES

I. Very expensive to maintain

II. May not be available to the poor.

DIRECT MAIL

STRENGHTS

I. Focused audience

II. High response rate

WEAKNESSES

I. Too expensive to maintain

II. May not have a wide reach.

RADIO

STRENGHTS

I. Wider reach/coverage

II. Easily accessible and affordable

WEAKNESSES

I. Expensive to maintain especially to the advertising organisation

II. Signal/connection issues.

MAGAZINE

STRENGHTS

I. attractive with colorful eye-catching pictures

II. Can easily understood by users.

WEAKNESSES

I. Magazines are usually very expensive than newspapers

II. Can easily be destroyed.

OUTDOOR DISPLAY

STRENGHTS

I. Very attractive with eye-catching pictures

II. Easily accessible with wider reach.

WEAKNESSES

I. Very expensive to maintain

II. Not focused/ not targeted at audience.

III. Waste coverages

Explanation:

Advertisement agencies are utilising several means of communication and marketing to their customers as described above those means has been fully utilized.

Newspaper Advertising is very affordable and can be easily accessible to the local population while it is easier to destroy or misplaced and also it can not be utilised by illustrates who can not read.

Television advertising is one of the most attractive as it contains pictures that can be attractive to its audience and also it has a wide coverage, it also has certain weaknesses which includes the cost of maintaining etc.

Outdoor advertising is also very attractive to the audience and it has a wide coverage as everyone making use of road can be easily reached. Some of the weaknesses of outdoor advertising includes the cost of sustaining it and also waste coverages as many audience may not need or desire the product being displayed.

Account verification accounts 5,000 accounts 3,000 accounts Correspondence letters 1,000 letters 1,400 letters How much of the account billing cost will be assigned to Department B

Answers

Answer:

$24,750

Explanation:

The computation of the account billing cost assigned to department B is shown below;

Computation of the activity rate of account billing cost pool

Activity rate = Account billing cost ÷ Expected account billing lines

= $220,000 ÷ 4,000,000

= $0.055 per line

Now Calculation for account billing cost assigned to department B is  

Cost assigned = Activity rate × Activity of Department B

= $0.055 × 450,000

= $24,750

What will appear under a misspelled word in Word Online?

An arrow
A zigzag line
An exclamation point
A bold line

Answers

Answer:

A red Zigzag line

Explanation:

I think

A zigzag line

Explanation:

A welding company specializes in custom steel frames and uses job costing to account for its operations. The following information is available as of May 1 for the work-in-process inventory account:

Job# Direct Materials Direct Labor Man. Overhead Total Cost
304 $3,000 $1,800 $2,520 $7,320
306 4,000 2,100 2,940 9,040
Total Cost 7,000 3,900 5,460 16,360

Welding Company pays an hourly rate of $15 for direct labor. Manufacturing overhead costsare applied to jobs based on the direct labor hours used. During the month of May, Jacob Welding spends $5,800 to purchase materials and $4,650 for manufacturing overhead. The operations in May are summarized below.

Job# Material Requisition summary Time Card Summary (Hours)
304 $1,100 40
306 900 30
307 2,800 110
308 750 25
Total 5,550 205


Jobs 304, 306, 307 are completed in May but only Jobs 304 and 307 are delivered to customers.
Required:
Calculate the predetermined overhead rate used.

Answers

Answer: $21 per direct labor hour.

Explanation:

Based on the information given in the question, the predetermined overhead rate that is used will be calculated as:

= Manufacturing overhead / Direct labor

where,

Manufacturing overhead = 5460

Direct labor = 3900/15 = 260 hours

Therefore, predetermined overhead rate:

= 5460/260

= $21 per direct labor hour.

Which of the following qualitative considerations may impact capital investment analysis? a.Manufacturing productivity b.Manufacturing flexibility c.Manufacturing control of product quality d.All of these choices are correct.

Answers

Answer:

What I think it's C if it's not I probably think it's gonna be D

The qualitative considerations that impact capital investment analysis are the manufacturing productivity, flexibility, and control of product quality. Option d is correct.

What is the capital investment analysis?

Companies and government organizations utilize capital investment analysis as part of their budgeting process to determine the potential profitability of a long-term investment, called the capital investment analysis.

Long-term investments, such as equipment, machinery, or real estate, are evaluated using capital investment analysis.

There are certain qualitative considerations, that impact the capital investment analysis like the manufacturing productivity, flexibility, and control of product quality.

Therefore, option D is correct.

Learn more about the manufacturing, refer to:

https://brainly.com/question/14275016

Many restaurants do not take reservations. You simply arrive and wait your turn. If you arrive at 7:30 in the evening, you have at least an hour wait. Notwithstanding that fact, a few people arrive, speak quietly with the maître d’, hand him some money, and are promptly seated. At some restaurants that do take reservations, there is a month wait for a Saturday evening, three weeks for a Friday evening, two weeks for a Tuesday through Thursday, and virtually no wait for Sunday or Monday evening. How do you explain these events using demand and supply?

Answers

Many restaurants are misleading you

4. Know the market trends of products that are in demand not
only within the local market but also in the international market.​

Answers

Answer:

oligopoly

Explanation:

it is unique the market is blocked not easy to enter

The demand for a certain drug in a hospital has been increasing. For the past six months, the following demand has been observed:
Month Demand, Units
January 15
February 18
March 22
April 23
May 27
June 26
Use a three-month moving average to make a forecast for July.

Answers

Answer:

25.3

Explanation:

A moving average is often used to pinpoint the increase or decrease of a certain statistic over a certain period of time since the increase in the demand for this specific drug has been increasing constantly for the past 6 months we will take the past 3 months, April, May, and June, so we will have to add up 23+27+26=76, now we just have to divide by the number of months= 76/3=25.3, so the moving average for the increase in the forecast for July will be 25.3

Nash Company sold 10,800 Super-Spreaders on December 31, 2020, at a total price of $1,015,200, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $561,600. The assurance warranties extend for a 2-year period and are estimated to cost $43,400. Nash also sold extended warranties (service-type warranties) related to 2,100 spreaders for 2 years beyond the 2-year period for $12,600. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash.

Answers

Answer:

     Amount reported in Income

Particulars                           Amount

Sales revenue                   $1,015,200

Warranty expenses           $43,400

 Amount reported on balance sheet

Particulars                                 Amount

Unearned service revenue      $12,600

Cash ($1,015,200 + $12,600)   $1,016,460

Warranty liability                       $43,400

Assume that you purchase a 6-year, 8% savings certificate for $1,000. If interest is compounded annually, what will be the value of the certificate when it matures?

Answers

Answer:

$1,586.87

Explanation:

Rate (I/Y) = 8.00%

Period (N) = 6

Amount (PV) = 1000

PMT = 80

Annual compounding type

Using the MSExcel function to solve for FV.

Future value = FV(Rate, Nper, Pmt, -Pv, 0)

Future value = FV(8%, 6, 80, 1000, 0)

Future value = $1586.87432294

Future value = $1,586.87

So, the value of the certificate when it matures will be $1,586.87.

Kahn Performance Nutrition produces a protein shake that contains whey protein as one of its ingredients. The whey protein (materials) standards for each batch of protein shake produced are 12 pounds of whey protein at a standard cost of $3 per pound. During July, Kahn Performance Nutrition purchased and used 54,000 pounds of whey protein at a total of $170,000 to make a total of 4,300 batches of protein shake. What is the materials quantity variance for whey protein in July?

Answers

Answer:

The correct answer is "-$7200 (Unfavorable)".

Explanation:

Given:

Actual quantity,

= 54000 pounds

Standard price,

= $3 per pound

Standard quantity,

= [tex]4300\times 12[/tex]

= [tex]51600 \ pounds[/tex]

As we know,

⇒ [tex]Material \ quantity \ variance=(Standard \ quantity-Actual \ quantity)\times Standard \ price[/tex]By substituting the values, we get

⇒                                          [tex]=(51600-54000)\times 3[/tex]

⇒                                          [tex]=(-2400)\times 3[/tex]

⇒                                          [tex]=-7200 \ (Unfavorable)[/tex]

The Nash equilibrium of this game is for Tying-the-Knot to set alow price and Bridezilla-No-More to set alow price. True or False: Both firms would be worse off if they cooperated and set a high price for their services, instead of using the Nash equilibrium. True False Suppose that the firms play this game indefinitely. Both firms agree to cooperate in order to maintain higher profits. To deter cheating, Tying-the-Knot announces that it will play a grim strategy. Given this strategy, what will happen if Bridezilla-No-More breaks the cooperative agreement in the first period

Answers

Answer:

Tying-the-Knot and Bridezilla-No-More

1. The Nash equilibrium of this game is for Tying-the-Knot to set a low price and Bridezilla-No-More to set a low price.

True

2. Both firms would be worse off if they cooperated and set a high price for their services, instead of using the Nash equilibrium.

False

3. Given Tying-the-Knot grim strategy, if Bridezilla-No-More breaks the cooperative agreement in the first period,

there will be a permanent breakdown in cooperation between the two firms.

Explanation:

Playing the grim trigger strategy, Tying-the-Knot cooperates with Bridezilla-No-More in the first round and in the subsequent rounds as long as Bridezilla-No-More does not defect from the agreement.  Once Tying-the-Knot finds that Bridezilla-No-More has betrayed the agreement in the previous game, he will then defect forever.  Both firms will then lose as they cannot cooperate to achieve higher profits.

Finance


Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm but the formula used in both the cases are different. Company

ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share and expects the same for the next year. The cost of capital to the firm is 11%. The company earns return on investment of 15% and the firm 8is planning dividend payout ratio of 60%. Calculate:

a. Price of the share using Walter Model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether dividend is to be declared or not.

b. Price of the share using Gordon model. Comment on the relationship between return on investment and cost of capital in the case above and decisionm

[2] R6 386,16.

[3] R1 930,43.

[4] R3 897,29.

[5] none of the above

Checking answer$1

Financial Math

Q198898

 Deadline passed

Mr Mahlangu invests R20000 to play lobola. After 48 months he receives 65000. The interest on the investment is compounded quarterly. Determine the yearly interest rate at which money was invested. Give your answer as a percentage rounded to two decimal places.

Checking answer$1

Archive Tasks & Questions are stored in archive for 14 days

Biochemistry

Q198087

 Deadline passed

11. Indicate which type of bonds are involved in the following

a. Formation of the primary structure of a protein

b. Stabilization of the alpha helix and beta pleated sheet structures of proteins

12.Identify the biomolecular composition of the following cells

a.Endoplasmic reticulum

b.Mitochondria

c.Cytoskeleton

d. Nucleus

13 Under aerobic catabolism of glucose ,in which compartment of the eukaryotic cell does the following reaction occurs?

a conversion of pyruvate to acetyl CoA

b.conversion of succinyl -CoA to succinate

c.conversion ofNADH to ATP.

d.conversion of phosphologlycerate to phosphoenolpyruvate.

14. Briefly outline how ATP is generated from glucose in the absence of oxygen. What is the importance of this pathway?

15. Briefly explain the process by which excess dietary carbohydrates and lipids are stored in the human body

Answer approved2$1

Finance

Q199880

 Deadline: 28.05.21, 18:48

Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm but the formula used in both the cases are different. Company

ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share and expects the same for the next year. The cost of capital to the firm is 11%. The company earns return on investment of 15% and the firm is planning dividend payout ratio of 60%. Calculate:

a. Price of the share using Walter Model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether dividend is to be declared or not.

b. Price of the share using Gordon model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether

dividend is to be declared or not.​

Answers

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged≡⇵∠⊅↓⇆°∞∴∴∵∵∵∴∴∵∵∴∴∵∴

∴∴≈↓∴↔∪∪∩⇄

Explanation:

Customers arrive at a bank teller machine at the rate one every three minutes. Each customer spends an average of two minutes at the teller machine. The arrival rate and the service rate are approximated by Poisson and negative exponential distributions respectively.
Determine the following:
a – utilization of the teller machine
b – average number of customers in line
c – average number of customers in the system
d – average time customers spend in line
e – average time customers spend in the system
f – probability of three customers in the system
g – probability of two or more customers in the system.

Answers

Answer:

Arrival rate

1 every 3 minutes

1 minute = 1/3 = 0.33

60 minutes = 0.33*60 = 19.8 = 20 per hour

λ = 20 per hour

Service Rate

1 every 2 minutes

1 minutes = 1/2 = 0.5

60 minutes = 0.5*60 = 30 per hour

µ = 30 per hour

a. Utilization of Teller Machine

P = λ / µ

P = 20/30

P = 66.67%

b. Average number of customers in line

Lq = pL = (λ/µ) (λ/µ- λ)

= (20 / 30) (20 / 30 - 20)

= 20/30 * 20 / 10

= 1.33 customers

c. Average number of customers in the system

L = (λ/µ- λ)

= 20 / 30 - 20

= 20 / 10

= 2 customers

d. Average time customer spends in line

Wq = λ/[µ*(µ- λ)]

= 20 / [30 * (30-20)]

= 20 / 30 * 10

= 0.06667 hours or 4 minutes

e. Average time customers spend in the system

W = 1/(µ- λ)

= 1 / 30 - 20

= 1/10

= 0.10 hours or 6 minutes

f. Probability that there are 3 customers in the system

Pn = (1-p)*p^n

= (1 - 20/30) * (20/30)^3

= 0.3333 * 0.296296

= 0.09876

g. Probability that there are two or more customers in the system

= 1 - P(0) - P(1)

= 1 - (1 - 20/30) * (20/30)^0 - (1 - 20/30) * (20/30)^1

= 1 - 1/3 - 2/9

= 4/9

= 0.4444

The technical and socio-cultural dimensions of project management are two sides of the same coin. Explain

Answers

Indeed, the technical and socio-cultural dimensions of project management are two sides of the same coin. This is so because the project management is in charge of administering and managing the human and material resources of a specific project.

Thus, it must organize not only the resources but also the members of the company who are in charge of exploiting those resources and maximizing results.

Therefore, just as a technical face is required to organize resources, a socio-cultural and human approach is required that allows a better functioning of the human resources of the company.

Learn more about project management in https://brainly.com/question/22590420

The December 31, 2016 balance sheet of Jensen Company showed Equipment of $76,000 and Accumulated Depreciation of $18,000. On January 1, 2017, the company decided that the equipment hasa remaining useful life of 6 years with a $4,000 salvage value. Compute the depreciable cost of the equipment. Depreciable cost Compute the revised annual depreciation.
Revised annual depreciations

Answers

Answer:

A. $54,000

B. $9,000

Explanation:

A. Computation for the depreciable cost of the equipment

Book value, 1/1/17 $58,000

($76,000 – $18,000)

Less salvage value $4,000

Depreciable cost $54,000

($58,000-$4,000)

Therefore the depreciable cost of the equipment is $54,000

B. Computation for the revised annual depreciation

Revised annual depreciation = $54,000÷6 years

Revised annual depreciation = $9,000

Therefore the revised annual depreciation is $9,000

The law of increasing opportunity costs Multiple Choice applies to land-intensive commodities but not to labor-intensive or capital-intensive commodities. results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. may limit the extent to which a nation specializes in producing a particular product. refutes the principle of comparative advantage.

Answers

Answer:

may limit the extent to which a nation specializes in producing of a particular product.

Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invested the same amount of resources in a salon business or any other business as the case may be.

The law of increasing opportunity costs can be defined as a principle in business which states that, if an organization or business firm continually raise (increase) its level of production, its opportunity cost also increases (rises).

Consequently, this may limit the extent to which a nation or country in any part of the world specializes in producing of a particular product so as to reduce or lower its opportunity cost.

Coronado Industries has the following costs when producing 100000 units: Variable costs $600000 Fixed costs 900000 An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $178000. The net increase (decrease) in the net income of accepting the supplier’s offer is

Answers

Answer:

Particulars                                                Amount

Saving in variable costs                          $600,000

Add: Income from lease                          $178,000

Less: Purchase price (100000*$4.50)   ($450,000)

Increase (Decrease) in net income       $328,000

Thus, net income would increase by $628,000.

The following expenditures relating to plant assets were made by Adam Company during the first 2 months of 2020.

1. Paid $5,000 of accrued taxes at time plant site was acquired.
2. Paid $200 insurance to cover possible accident loss on new factory machinery while the machinery was in transit.
3. Paid $850 sales taxes on new delivery truck.
4. Paid $17,500 for parking lots and driveways on new plant site.
5. Paid $250 to have company name and advertising slogan painted on new delivery truck.
6. Paid $8,000 for installation of new factory machinery.
7. Paid $900 for one-year accident insurance policy on new delivery truck.
8. Paid $75 motor vehicle license fee on the new truck

Required:
a. Explain the application of the cost principle in determining the acquisition cost of plant assets.
b. List the numbers of the foregoing transactions, and opposite each indicate the account title to which each expenditure should be debited.

Answers

Explanation:

a.)

In terms of the cost principle, the cost of acquiring a plant asset involves all of the expenditures required to get this asset and also to get ready to serve it's purpose.

Cost is measurable by the cash amount paid for a transaction that has to do with money or the money equivalent paid when assets that are not cash are used as a means of payment.

the cash equivalent is the same as the fair market value of the assets that were given or received..

b )

the account title that expenditure should be debited

1. 5000 paid for land

2. 200 paid is for factory machine equipment

3. 850 paid for delivery truck is for equipment

4. 17500 paid for parking lot is for land improvement

5. 250 paid for companies name to be printed on truck is equipment

6. 8000 paid for installation is for equipment

7. 900 paid for insurance policy on truck is prepaid insurance

8. 75 paid as license fee is for license insurance

Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: Wages Machine operators $ 400,000 Selling and administrative personnel $ 85,000 Materials used Lubricant for oiling machinery $ 35,000 Cocoa, sugar, and other raw materials $ 350,000 Packaging materials $ 290,000 Randall's direct materials amounted to:

Answers

Answer:

1160.000

Explanation:

suma los gastos

You have been given $5 million to market Kaiser health insurance to new college graduates in California. Briefly mention how you will spend the $5 million in an attempt to motivate new graduates to sign up for Kaiser health insurance. Include a brief rationale for your marketing plan.

Answers

Answer:

You have been given $5 million to market Kaiser health insurance to new college graduates in California. Briefly mention how you will spend the $5 million in an attempt to motivate new graduates to sign up for Kaiser health insurance. Include a brief rationale for your marketing plan.

For airlines that sell flights from New York City to Boston, Amtrak trains are primarily a __________ Group of answer choices Potential entrant Buyer Supplier Rival Substitute product

Answers

Answer: rival

Explanation:

For airlines that sell flights from New York City to Boston, Amtrak trains are primarily a rival.

A rival in a business environment simply refers to ones competitor. In this case, the companies are all in the same industry and competes against each other, seeks competitive advantage over one another and seeks to capture a bigger market.

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