Answer:
variable cost per bushel = $0.18848
total fixed costs = $6,652
Explanation:
we can use the high-low method of accounting to determine the variable and fixed costs:
- highest activity cost = $25,500
- highest activity level = 100,000 bushels
- lowest activity cost = $7,500 (*doesn't make sense to use $75,000)
- lowest activity level = 4,500
variable cost per unit = (highest activity cost - lowest activity cost) / (highest activity units - lowest activity units)
variable cost per unit = ($25,500 - $7,500) / (100,000 - 4,500) = $18,000 / 95,500 bushels = $0.18848 per bushel, since the quantities are large, we cannot round up
fixed costs = highest activity cost - (variable cost x highest activity units)
fixed costs = $25,500 - ($0.18848 x 100,000) = $6,652
Answer:
Using the indirect method, an increase in accrued wages is not an adjustment to net income.
Explanation:
An increase in accounts receivable are subtracted from net income.
A decrease in a prepaid expense are added to net income.
A loss on equipment sold are added to net income.
An increase in accrued wages not consider. (Increase in the wages payable balance are added to net income)
An increase in plant, property and equipment.are subtracted from net income.
Answer:
$90
Explanation:
Nominal GDP is GDP calculated using current year prices.
Nominal GDP = current year prices x unit of output
18 x $5 = $90
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
Answer:
C) $10,000, $1,000, and $9,000, respectively.
- actual reserves increase by $10,000
- required reserves increase by $1,000
- excess reserves increase by $9,000
Explanation:
the money deposited by the client = $10,000
bank's reserve ratio is 10% = $10,000 x 10% = $1,000
since the bank kept the whole $10,000 as reserves, then:
- actual reserves increase by $10,000
- required reserves increase by $1,000
- excess reserves increase by $9,000
The bank is only required to keep $1,000 in reserves, this means it can borrow the remaining $9,000 whenever they want.
