Business used mass production to decrease prices and increase profits because since there was many of one product the prices had to decrease so people could afford the products and if more people buy the products then the businesses will gain more profits from it ( from mass production) .
The lesson of sunk costs is to forget about the money that's irretrievably gone and instead to focus on the marginal costs and benefits of future options. A sunk cost is a cost that happened during the manufacturing of something else and there is no way to recover that money back if the item or service fails. These costs will happen no matter the decision or outcome of a situation so most companies do not factor in sunk costs.
Answer:
The total cost is 3,360,000 and consiste of the proce of the new equipment plus the shipping and installtion cost. In contrast, Alexander's initial investment outlay are liabilities.
Explanation:
acquisition cost + shipping and installation cost = equipment value
3,200,000 + 160,000 = 3,360,000
The increase in liablities, will be that, liabilities, not cost, because is not associate with the equipment being ready to use. The equipment is ready to use, once is installed. so shipping and installment cost should be activated, not the accruals and account payable.
The entry to record the issuance includes a debit to Cash for $139,875 (or par of $150,000 x 0.9325=139,875), a debit to Discount on Bonds Payable for $10,125 (or par value of $150,000 - issue price of $139,875), and a credit to Bonds Payable for $150,000 (the par <span>value).
</span>Amount repaid = Interest payments of $105,000
20 x ($150,000 x 7% x ½)) = $105,000 + $150,000 (par value paid at maturity)= $255,000
Total bond interest expense = $255,000 – $139,875 = $115,125
The main function that demonstrated by Arman is : Planning
In this step, Arman hasn't yet started how to achieve that goal. But he's already decided the benchmark for his team and started to formed various strategies that they can do
hope this helps