A traveler who wants to explore and preserve the natural environment is a cultural tourist. True or false

A chemical company spent $ 530 comma 000 to produce 150 comma 000 gallons of a chemical that can be sold for $ 5.00 per gallon.

solmaris [256]

Answer:

If the company decides to process it further, it will increase operating income $68,000

Explanation:

Selling the chemical on processing,

the Sales will be = Gallons of chemical produce × Selling price per gallon

= 150,000 × $5

= $750,000

Cost of Processing the chemical = $530,000

Operating Income on selling the chemical:

= Sales - Cost of Processing the chemical

= $750,000 - $530,000

= $220,000

Total cost incurred to process the chemical into a weed killer:

= Cost of Processing the chemical +

= $532000 + $260,000

= $792,000

Sales of 150,000 gallons of weed killer:

= Selling price per gallon × Chemical produce

= $7.20 × 150,000 gallons

= $1,080,000

Operating income on processing to weed killer:

= Sales of 150,000 gallons of weed killer - Total cost incurred to process the chemical into a weed killer

= $1,080,000 - $792,000

= $288,000

So, If the company decides to process it further, it will increase operating income by:

= Operating income on processing to weed killer - Operating Income on selling the chemical

= $288,000 - $220,000

= $68,000

5 0

3 years ago

An accountant increases the price he charges for his services by 2 percent. In response, the demand for his services decreases

Rashid [163]

Answer:

Decrease

Explanation:

The reason is that the price and demand are inversely proportional so if the price has been increased then the demand of the product will be decreased. Take the example of Bugatti Chiron, the price of the car is $19 million and total number of people that own is in tens this is because the buyers are less in quantity due to higher prices of the product. Same is the case here, if the accountant is going to charge high then his revenue will drop due to lower people are willing to buy its services.

4 0

3 years ago

Canon was able to redesign the copying machine so that it didn't need professional service—reliability was built directly into t

Studentka2010 [4]

Answer:

architectural innovation

Explanation:

The scenario is describing the term known as architectural innovation. This refers to the innovation of the specific architecture of any product that changes and/or modifies the way the different components of the machine link or relate to each other, thus allowing it to perform new functions or the same functions but in a much more user-friendly manner. This is what Canon did by changing the architecture of the copying machine so that it was more user-friendly for the end consumer.

5 0

3 years ago

Zoe would like to be able to save for night courses at the local college. Which of these would be a good way for Zoe to make mor

Amanda [17]

Answer:

Spend 10% on clothing and 10% on entertainment.

Explanation:

There are some expenses that you can lower that will not radically affect your lifestyle while other expenses should be more important.

For example, you shouldn't try to save money by eating less or going to live in an ugly place where you pay a very small rent.

If you want to save money, then you should cut some costs from non essential expenses like entertainment and new clothes.

3 0

3 years ago

On March 31, 2018, Easy Rental Agency Inc.'s trial balance included the following selected unadjusted account balances. The comp

AVprozaik [17]

Answer:

1)

Dr Depreciation expense 1,226

Cr Accumulated depreciation 1,226

2)

Dr Unearned revenue 6,487

Cr Rent revenue 6,487

3)

Dr Interest expense 600

Cr Accrued interest 600

4)

Dr Supplies expense 1,960

Cr Supplies 1,960

5)

Dr Insurance expense 3,618

Cr Prepaid insurance 3,618

6)

Dr Income tax expense 2,600

Cr Income tax payable 2,600

Explanation:

March 31, 2018

Prepaid insurance $14,740 - 3,618

Supplies 2,900 - 1,960

Equipment 22,100

Accumulated depreciation-equipment 5,680 + 1,226

Unearned revenue 9,730 - 6,487

interest payable 600

Income tax payable 2,600

Loan payable, due 2020 20,000

Rent revenue 30,900 + 6,487

Salaries expense 14,500

depreciation expense 1,226

interest expense 600

Supplies expense 1,960

Insurance expense 3,618

Income tax expense 2,600

1. The equipment, which was purchased on January 1, 2017, is estimated to have a useful life of four years. The company uses straight-line depreciation.

depreciation per year = $22,100 / 4 = $5,525

depreciation expense up to March 31, 2018:

$5,525 x 1.25 = $6,906.25 ≈ $6,906

adjustment entry = $6,906 - $5,680 = $1,226

Dr Depreciation expense 1,226

Cr Accumulated depreciation 1,226

2. One third of the unearned revenue related to rent is still unearned at the end of the quarter.

adjusting entry = 9,730 - (9,730 x 1/3) = $6,486.67 ≈ $6,487

Dr Unearned revenue 6,487

Cr Rent revenue 6,487

3. The loan payable has an interest rate of 6%. Interest is paid on the first day of each following month and was last paid March 1, 2018.

interest per month = $20,000 x 6% x 1/12 = $600

Dr Interest expense 600

Cr Accrued interest 600

4. Supplies on hand total $940 at March 31.

adjusting entry = $2,900 - $940 = $1,960

Dr Supplies expense 1,960

Cr Supplies 1,960

5. The one-year insurance policy was purchased for $14,740 on January 1.

insurance expense per quarter = $14,470 x 3/12 = $3,617.50 ≈ $3,618

Dr Insurance expense 3,618

Cr Prepaid insurance 3,618

6. Income tax is estimated to be $2,600 for the quarter.

Prepare the quarterly adjusting entries required at March 31.

Dr Income tax expense 2,600

Cr Income tax payable 2,600

8 0

3 years ago