Machine A has an initial cost of $6,000 with total annual maintenance costs of $750. Machine B has an initial cost of $8,500 wit
1 answer:
When the initial cost of Machine A is $6,000 and that of Machine B is $8,500, then both the machines will have the same current value at the end of 10 years.
<h3>What is the meaning of current value?</h3>The present market value of an asset that prevails in the market is known as the current value of an asset. Using the given conditions, the current value will be the same as computed under,
Putting the given value and solving further we get,
Hence, the significance of current value is aforementioned.
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Answer:
b. gross margin would be $4,000.
Explanation:
Distribution costs are considered when calculating gross margin.
Gross margin is given by sales subtracted by the cost of goods sold:
The gross margin would be $4,000.
Although the freight cost should be included when calculating net income, more administrative costs could be added and, thus, net income cannot be determined with the given information.
Answer:
The net income is $59,000
Explanation:
Please refer to the attached file for calculation.
