Answer:
The amortization expense that should be recorded by Smith & Sons in the second year is $3,750
Explanation:
The computation of the amortization expense in the second year is shown below:
= (Cost of patent) ÷ (expected economic life of the patent)
= ($45,000) ÷ (12 years)
= $3,750
The amortization expense should be the same for the expected life i.e 12 years
For more understanding, we pass the journal entry which is shown below:
Amortization expenses A/c Dr $3,750
To Patent A/c $3,750
(Being amortization expense recorded)
Answer: D. the opportunity cost of doing it yourself is more than $400.
Explanation: I would think that one sounds correct
Keep the product:
Sales $500,000Variable Expenses 340,000
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Contribution Margin 160,000
Fixed Manufacturing 220,000
Net operating income (60,000)
Drop the product:
Sales $0
Variable Expenses 0
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Contribution Margin 0
Fixed Manufacturing 180,000
Net operating income (180,000)
Difference of keep and drop the product would be:Sales ($500,000)
Variable Expenses 340,000
-----------------------------------------
Contribution Margin (160,000)
Fixed Manufacturing 40,000
Net operating income (20,000)
Therefore, net operating income would decrease by $20,000 if Product A were dropped.
Answer:
(Note please, the background of L.L. Bean was not stated. I am answering on a general note.)
L.L. Bean empowered its employees to make independent decisions that ultimately have financial consequences so as to save time needed to consult superior authorities for directions.
Explanation:
In the course of business, some customers might have needs and inquiries that have to be responded to on the spot so that they do not lose their patience and move to other competitors.
When an organization empowers its employees to make independent decisions that might affect the company financially, it is in a bid to serve the customers better by saving their time. This also instills trust and confidence in the company because the employees are knowledgeable of their services.
A market price is a price for which a good or a service is offered in a marketplace.