Answer:
The increase in earnings is $136511.56
Explanation:
Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:
Profit on lease=present value of lease payments-costs
=$274149-$156000
=$118149
However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:
Interest=($274149-$44617)*8%
=$18362.56
Please note that interest is charged after lease payment as lease payment is made in advance not in arrears.
Conclusively, the increase in earnings is $118149+$18362.56
That is $136511.56
The answer will be C
i hope this helps
Answer:
Overhead costs are assigned to production using an overhead application rate, whereas no such "application rate" is used to assign the costs of direct materials and direct labor to production. The reason for this difference in procedures is that:
Overhead is an indirect cost which cannot be traced easily and directly to specific units of product.
Explanation:
Manufacturing overhead costs are not direct costs. They are not generally traceable to units of products. They include such indirect costs as Depreciation Expense, Property Taxes, Indirect Labor, Indirect Materials, etc. No unit of product can be ascribed such costs except as an approximation.
Answer:
$59, 768.7
Explanation:
The ROS (Return on sales) of a company is a ratio used to evaluate a company's operations to how much profit they make per dollar of sales.
Since the company's goal is to increase sales by $417,963 this year they would need to reduce their logistics cost.
We use the formula
ROS =
Operating profit / (Net sales or expected Net sales)
We therefore substitute the formula:
The Operating profit= ROS X Net sales expected
14.3% x $417, 963 = $59, 768