Answer:
$23,520
Explanation:
The computation of book value of the machine is shown below:-
Machine cost $28,000
Less: Depreciation $4,200
($28,000 - $2,800) ÷ 6
Book Value at beginning
of Year 2 $23,800
Add: Improvements $7,000
Total $54,600
Less: Accumulated
Depreciation for 3 years $31,080
($54,600 - $2,800) × 3 ÷ 5 years
Book Value Dec 31, Year 4 $23,520
The next items to subtract from net sales in order to compute net income for a merchandiser are <u>Expenses</u>.
<h3>What are the expenses for a merchandiser?</h3>
The expenses for a merchandiser include selling and distribution expenses. Others are administrative expenses, including depreciation for long-term assets, and tax expenses.
Thus, o compute net income for a merchandiser, you will start with net sales, subtract the cost of goods sold and subtract other <u>expenses</u>.
Learn more about the expenses of a merchandiser at brainly.com/question/5657625
Answer:
Earnings per share = Net income/No of ordinary shares outstanding at the end of the year
Earnings per share = $290,000/240,000 shares
Earnings per share = $1.21
Therefore, Price-earnings ratio = Market price per share/Earnings per share
Price-earnings ratio = $70/1.21
Price-earnings ratio = 57.85
Explanation: First and foremost, there is need to calculate earnings per share by considering the net income and then divide it by the number of common stocks outstanding at the end of the year. Price-earnings ratio is obtained by dividing the market price per share by earnings per share.
Answer:
c. Marginal cost is $8, and average total cost is $5.
Explanation:
Marginal cost of a firm is the cost difference in producing an additional unit of a firm's output. The extra amount result from the an extra unit of output produced. It is derived by calculating the difference between the total cost and dividing it by the difference in output i.e change in TC/ change in output
In the question, The change in TC is calculated as $5008 - $5000 = $8 and the change in quantity is 1001 - 1000 = 1
Therefore 8/ 1= 8 marginal cost is = $8
on the other hand, Average total cost is the cost per unit of output i.e the cost of a commodity out of all the products produced by a firm. it is calculated by dividing the total cost by the total number of output
In the question above, The total cost is $5,000 and the Total output is 1,000
$5,000/ 1000 =$ 5
similarly, when the total output increased to 1001 and the total cost rises to $5008 the Average cost still remains at$ 5
prove: 5008/ 1001 = 5.0002 which is approximately equal to 5.
therefore the correct answer is c. Marginal cost is $8, and average total cost is $5.
Answer:
Quantity of beef demanded will decrease by 12%
Explanation:
Data provided in the question:
Price elasticity of demand for beef, Ed = 0.60
Increase in the price of beef = 20%
Now,
Price elasticity of demand for beef,
Ed = [ Percentage change in Quantity ] ÷ [ Percentage change in price ]
or
0.60 = [ Percentage change in Quantity ] ÷ 20%
or
Percentage change in Quantity = 0.60 × 20%
or
Percentage change in Quantity = 12%
Also,
Price and Quantity are inversely proportional
Hence,
With the increase in price, the quantity will decrease
Therefore,
Quantity of beef demanded will decrease by 12%
