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Sophie [7]
3 years ago
8

Leaping Deer Company purchased a tractor at a cost of $240,000. The tractor has an estimated residual value of $40,000 and an es

timated life of 8 years, or 12,000 hours of operation. The tractor was purchased on January 1, 2015 and was used 2,400 hours in 2015 and 2,200 hours in 2016. What method of depreciation will produce the maximum depreciation expense in 2016
Business
1 answer:
trapecia [35]3 years ago
3 0

Answer:

Units of production method: $76,820

Explanation:

The three most common depreciation methods are: straight line, double-declining, and units of production. We will calculate the depreciation expense for each.

Straight line method:

Depreciable amount= cost - residual value

                                 = 240,000 - 40,000

                                = 200,000

Depreciation by year = depreciable amount / years of useful life

                                   = 200,000 / 8

                                   = 25,000

Double declining method

Depreciation per year = depreciable amount x (2 / useful life in years)

                      = 200,000 x (2 / 8)

                      = 50,000

Units of production method

Depreciation per unit  = depreciable amount / hours of operation

                                     = 200,000 / 12,000

                                     = 16.7

Total depreciation = depreciation per unit x actual units of operation

                              = 16.7 x 2,400 + 2,200

                              = 16.7 x 4,600

                              = 76.820

Therefore, the units of production method results in the highest depreciation expense among the three.

   

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It is always desirable to have a higher compounding frequency, regardless of the initial investment or the time horizon. True Fa
Katena32 [7]

Answer:

The answer is given below

Explanation:

Compounding frequency is the number of times the interest is paid in a year. A higher compounding frequency for a investment with the same initial investment and time horizon would produce more interest and profit as compared to that with a lower compounding frequency. But for a smaller initial investment or less time horizon of higher compounding frequency as compared to larger initial investment or more time horizon of lower compounding frequency, that of the lower compounding frequency is more desirable because it would produce more interest.

5 0
3 years ago
A(n) _____ is something a person wants to get out of a job or that brings them job satisfaction.
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Work value because it is part of a job
3 0
3 years ago
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What restriction did the US government place on advertising in 1997?
12345 [234]

Answer:

The answer should be D, a ban of deceptive advertisements.

Explanation:

In the 90s the government cracked down on deceptive advertising more than ever and more laws on the matter were added. The only other option that was actually ever banned was A, none of the other choices were ever banned. The ban on tobacco happened in the 70s under Nixon, that makes D the only possible answer. Hope this helps! :)

3 0
2 years ago
Zhang Industries sells a product for $700 per unit. Unit sales for May were 700 and each month's unit sales are expected to grow
ratelena [41]

Answer: $14594

Explanation:

The budgeted selling expense for the manager for the month ended June 30 will be calculated thus:

The unit sales for June will be:

= [700 × (1 + 3%)]

= 700 × (1 + 0.03)

= 700 × 1.03

= 721 units

Commission will be:

= 2% × (721 × 700)

= $10,094

Therefore, the selling expenses to be reported will be:

= $10,094 + $4500

= $14594

4 0
2 years ago
GUYS PLEASE HELP ME WITH FINANCIAL PLAN FOR COMPANY OF CONFECTIONERY PRODUCTS BASED ON COFFEE!!!!! 1)Set the price of product an
OLEGan [10]

You are planning a coffee company, This would depend on an amount of customers, location of the company, and how you are going to distribute the product. It will also depend on the source of your products, and the economic and political standpoint of each individual country

1) The buying price should encompass many "thoughts":

  1. It must be small enough to give you a profit
  • The price of the product must not meet or exceed your selling price, for to continue to do business with them, you must be able to earn a profit.
  1. It must be large enough so that both the buyer and seller is happy
  • To keep both the buyer and seller happy, the buyer must be able to give a reasonable price that would ensure a continuation of the product, which means buying in a price that would allow the seller to pay for employees, cover businesses expenditures, etc.

This may place the price in a higher amount, so you must ensure that your product is high-quality to offset the price. For in the balance of price vs customer, the higher the price, the less customers (unless you are a monopoly (which you are not), or you have loyalty.)

2) To calculate the possible earnings, you must subtract the costs from the total revenue you have gotten (to find the profit).

The costs can include: shipment, supplies, electricity, upkeep of store(s), taxes (property, business, etc), royalty to coffee-company, ad-costs (if you decide to run them), etc.

For example, let us say that:

Total cost for:

  1. Shipment: $300 per shipment (10 shipments = 10 x 300 = $3000)
  2. Royalty: $1000
  3. Tax: $300
  4. Payment to sources: $0.10 a lb.
  5. Cost for 500 lbs. of coffee

500 x 0.10 = 50

3000 + 1000 + 300 + 50 = $4,350

This means that total cost for shipment of resources needed is $4,350.

Now, let us calculate the cost of the business itself:

For example:

Total cost for:

Building maintenance: $5,000

Pay for employees as a whole for 30 days: $6,000

Electricity, Gas, and other power source: $2,000

Total cost: 5000 + 6000 + 2000 = $13,000

Total cost for extra workers (repairs): $3,000

Tax as a whole: $16,000

16000 + 3000 = 19,000

This means that total cost is:

$13,000 + $19,000 + 4,350= $36350

---------------------------------------------------------------------------------------------------------

So we must calculate the amount needed to break even and make a profit.

Let us say that you want to make a $10000 profit.

Add $36350 with $10000, which equals $46,350

=>

After a month, you find that approximately 50,000 customers show up (returns are counted too) in total to your stores because they find that your products are good

Divide $46,350 with 50,000

46,350/50,000 = ~0.93

However, 93¢ is a weird number to sell coffee, and so we will round up to $1.00

This means that you sell each cup of coffee at $1.00

--------------------------------------------------------------------------------------------------------

3) The cost of production is <em>$36,350</em>, with the total revenue being a projected amount of <em>$46,350 - $50,000</em>

Subtract the range with the production

$46,350 - $36,350 = 10,000

$50,000 - $36,350 = 13650

The total profit is projected to be from $10,000 - 13,650

--------------------------------------------------------------------------------------------------------

=> Remember revenue & profit is usually poured back into the company, and so the amount is subject to change in a year to year process. Also, the percentage of loyalty & new customers may change as well. Political events around the world may affect sales. Overseas openings of shops may also have an effect on the company.

-------------------------------------------------------------------------------------------------------

~<em>Rise Above the Ordinary</em>

4 0
3 years ago
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