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Aneli [31]
2 years ago
8

Baxter Bakers is trying to decide whether it should keep its existing bread-making machine or purchase a new one that has techno

logical advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $10,000 $25,000 Accumulated depreciation 6,000 0 Annual cash operating costs 9,500 5,000 Current salvage value of old machine 2,500 Salvage value in 10 years 650 1,200 Remaining life 12 yrs 12 yrs Refer to Baxter Bakers. The $10,000 cost of the original machine represents a(n)
Business
1 answer:
son4ous [18]2 years ago
4 0

Based on the type of cost that the original cost of the machine is, we can say that it represents a sunk cost.

<h3>What is a sunk cost?</h3>

This is a cost that a business has already incurred as regards a certain investment or asset. This cost cannot be recovered and so should not have any weight on future decisions made.

The original cost of the existing machine of $10,000, is a sunk cost because the company has already incurred it and cannot recover it.

Find out more on sunk costs at brainly.com/question/24976252.

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Which of the following is true of the Discount on Bonds Payable account? The bonds are due inten years.A) It is subtracted from
Aliun [14]

Answer:

A) It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet

Explanation:

The discount on Bonds payable, as their name implies, decrease the Bonds Payable carrying value. A bond with discounts, was issued at a lower price than his face value. The discount on bonds represent that difference.

It takes amortization while the time past, until at maturity, their balance is zero, to represent the reality, the obligation for the company is for the face value, so the carrying value of bonds payable should equal the face value.

Last, because the bonds are due in ten-year their place is the long-term liabilities. As their obligation are not within the 12 month period to qualify as short-term

8 0
3 years ago
Economic analysis is used only by policy makers to make policy decisions. only by business people to raise profits. only by inst
Free_Kalibri [48]

Answer:

The correct answer is: in all decision making.

Explanation:

Economic analysis is used in all walks of life, in decision making. It is not only relevant for policymaking or in business or for students. Rather, it is used in day to day life as well.  

Almost all the decision we make is based on cost-benefit analysis. It used by households and individuals for utility maximization. It is used by businesses for profit maximization and is used by policy makers for welfare maximization.

5 0
2 years ago
Your credit card has a credit limit of $1,000. Your credit card company reviews your credit line every 6 months. They will not i
Mice21 [21]

Answer:

2 years and 6 months

Explanation:

after 6months

     $1,000 x 10% = $100

     $1,000 + $100 = $1,100

after 1 year

     $1,100 x 10% = $110

     $1,100 + $110 = $1,210

after 1 year and 6 months

     $1,210 x 10% = $121

     $1,210 + $121 = $1,331

after 2 years

     $1,331 x 10% = $133.10

     $1,331 + $133.10 = $1,464.10

after 2 years and 6 months

     $1,464.10 x 10% = $146.41

     $1,464.10 + $146.41 = $1,610.51

4 0
2 years ago
The ways you act, think, and feel describe your _____.
Bas_tet [7]
Personality traits... i think

have a good day
4 0
3 years ago
The predetermined manufacturing overhead rate for the year was 140% of direct labor cost; employees were paid $17.50 per hour. I
Aleks04 [339]

Answer:

D. $ 367.500

Explanation:

We have to first compute the total direct labor cost. This is done by multiplying the estimated direct labor hours with the hourly rate.

Total Direct Labour costs $ 17.50 per hour * 15,000 hours  =  $ 262,500

Estimated manufacturing overhead per the data in the question is 140 % of Direct labor cost,

Estimated manufacturing overhead is $ 262,500 * 140 % = $ 367,500

5 0
3 years ago
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