Answer:
<u><em>Total expenses 936,500</em></u>
depreciation 291,500
wages expense 645,000
Explanation:
Assuming the depreciation are calculate base on straight line or that their output is lineal through the year:
It will be half of the depreciation for the year.
583,000 / 2 = 291,500 depreciation expense for six-month
For the year-end bonused It wll be the same ideal, we assume are earned equally during the year. So at half year half of the bonuses should be earned:
wages expense 1,290,000/2 = 645,000
<u>Total expenses 936,500</u>
Answer: a.$275,000
Explanation:
Let us assume local production sales of 0 for simplicity of analysis.
At 0 there will be no Variable Costs and no fixed costs because they are dependant on the amount of units produced.
If then Rylan Corporation receives 25,000 units at $16 per unit this will change the Variable costs as it will have to incorporate the new units.
The question however says that normal production continues. This means that Fixed costs do not change. That means fixed costs remain at $0.
That means the only change will be the Variable costs of selling 25,000 units.
At a rate of $11 per unit we then have,
= 11 * 25,000
= $275,000
The costs have increased by $275,000 from 0 which means that $275,000 is the Incremental cost.
Note that Fixed and Variable costs of 0 are improbable and we're only used for simpler analysis. Feel free to try the question with other number of units for your own practice. You will arrive at the same answer regardless.
Answer:
Operating cash flows
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV is a capital budgeting method used to determine profitable investments
Answer:
It should listen to his mother.
Explanation:
This week cash flow handled the fixed cost of 10 to Raymond's brother.
His father is not considering that so it thinks the business flops.
Now that fixed cost are paid the following weeks his gains will increase entirely based on the sales volume so, it is better to continue the business for the next three weeks.
