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3 years ago

The marginal revenue product of capital is _______.

Business

1 answer:

Jlenok [28]3 years ago

7 0

Answer:

D. the change in the firm's revenue as a result of employing one more unit of capital, such as a machine.

Explanation:

Marginal Revenue Product (MRP) of a factor (here capital) is the change in firm's revenue, due to employing one additional unit of that factor.

It is calculated as : product of Marginal (additional) product from the factor (capital) , with marginal (additional) revenue of a product

MRPS (k) = MPP (k) x MR

Eg : If MPP of capital (k) = 5 , MR = 10 .

So, MRP (k) = 10 x 5 = 50

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On April 1, 2016, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $57,200, ha

Harman [31]

Answer:

2016 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation $5720

2017 Depreciation

Dr depreciation expense $5720

Cr Accumulated depreciation $5720

Journal entries for 2018 expenditure

Dr repairs and maintenance $2900

Dr Equipment account $11850

Cr Cash account $14750

2018 Depreciation

Dr depreciation expense $4800.83

Cr Accumulated depreciation $4800.83

Explanation:

There are two policies for depreciating non-current asset especially when it is acquired part-way through the year like we have here, namely full year depreciation in the year of purchase and none in the year of disposal or proportional depreciation throughout the useful life,I am adopting the former in this question.

Formula for depreciation=cost-residual value/useful life

Yearly depreciation is ($57200-$0)/10=$5720

However,after two years the book value is calculated thus:

Book value=$57200-($5720*2)=$45760

additional cost incurred in enhancing the capacity of the asset would be added : $45760 +$11,850=$57610

Since the useful life has also been reviewed up to 12 years, the depreciation from now on is $57610/12=$4800.83

5 0

3 years ago

Read 2 more answers

During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labo

olchik [2.2K]

Answer:

Beginning work in process= $7000

Explanation:

Giving the following information:

Cost of goods manufactured by $112,000.

Direct materials cost of $52,000

Direct labor cost of $37,000.

Overhead cost of $26,000.

The work in process balance at June 30 equaled $10,000

Work in process on June 1?

Cost of goods sold= Beginning work in process + direct material + direct labor + manufacturing overhead - ending work in process

112000= ? + 52000 + 37000 + 26000 - 10000

Beginning work in process= 112000 - 52000 - 37000 - 26000 + 10000= $7000

7 0

3 years ago

Tinker's cost of goods sold in the year of sale (2019) was $790,000 and 2018 cost of goods sold was $810,000. The inventory at t

gladu [14]

Answer:

91 days

Explanation:

Here, we are to calculate the average number of days it will take to sell its inventory in 2019.

We proceed mathematically as follows;

Inventory turnover=COGS/Average inventory

Average inventory=(192,000 + 202,000)/2=$197,000

hence inventory turnover=(790,000/197,000)= 4.01

hence average days to sell=365/4.01 =91 days (approx)

6 0

3 years ago

Consider three closed economies. In the first economy, households spend $0.50 of each additional dollar they earn and save the r

aleksklad [387]

Answer:

b. In the first economy, the spending multiplier is greater than in the second economy. In the third economy, the spending multiplier is undefined

Explanation:

This can be easily understood by going through some calculations in a spending multiplier formula.

WORKINGS

The formula for Spending Multiplier = $\frac{1}{MPS}$

Spending Multiplier

Economy 1: Multiplier = $\frac{1}{0.5}$ = 2

Economy 2: Multiplier = $\frac{1}{1}$ = 1

Economy 3: Multiplier = $\frac{1}{0}$ = undefined

Note: MPS can be abbreviated as Marginal propensity to save

As we can see here economy 1 is 50% greater than economy 2 and economy 3 is undefined because they spend whole dollar they earn additionally.

On behalf of the above calculations, option B is a perfect match!

4 0

3 years ago

Cold Goose Metal Works Inc. is considering a one-year project that requires an initial investment of $500,000; however, in raisi

andrezito [222]

Answer:

The rate of return expected on this project by Cold Goose Metal Works Inc. is 15.20%

Explanation:

Since flotation cost is 4% that implies that $500,000 is actually 96% (100%-4%) of the cash proceeds from the capital funding,hence funds raised is computed thus:

funds raised=$500,000/0.96=$520,833.33

Annual return on investment=cash inflow-initial cash outflow

cash inflow is $600,000

cash outflow is $520,833.33

annual return on investment=$600,000-$520,833.33=$79166.67

rate of return on project=annual return on investment/initial investment

=$79,166.67 /$520,833.33*100=15.20%

The rate of return that Cold Goose Metal Works Inc is 15.20%

6 0

4 years ago