The amount of compensation expense Crane should record for 2017 under the fair value method is $207000
<u>Solution:</u>
From the given,
Stock options for 63000 shares
$10 par value common stock
$25 per share and the option price was $20
Total compensation expense = $627000
On calculating we get,
We can conclude that there is $207,000 decrease. Therefore, the correct answer is option c.
Answer:
Variable cost per unit= $6.6 per unit
Explanation:
Giving the following information:
January: $2,880 330
February: $3,180 380
March: $3,780 530
April: $4,680 660
May: $3,380 530
June: $5,520 730
To calculate the unitary variable cost, we need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,520 - 2,880) / (730 - 330)= $6.6 per unit
Answer:
It is more profitable to rent the office. Income will increase by $30,000
Explanation:
Giving the following information:
It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000.
Rent= $75,000 in revenues.
We need to calculate the most profitable decision:
Option A:
Income= 160,000 - 100,000 - 15,000= 45,000
Option B:
Rent= 75,000
It is more profitable to rent the office.