Answer:
Project X = $6,980.82
Project Y = - $2,478.42
Explanation:
The Present value is the price today of future cash flows and is calculated as follows :
Project X
($21,000) CF 0
$8,000 CF 1
$8,000 CF 2
$8,000 CF 3
$8,000 CF 4
$8,000 CF 5
$8,000 CF 6
I/YR = 18%
Therefore, NPV is $6,980.82
Project Y
($21,000) CF 0
$0 CF 1
$0 CF 2
$0 CF 3
$0 CF 4
$0 CF 5
$50,000 CF 6
I/YR = 18%
Therefore, NPV is - $2,478.42
Answer: A) absorption costing unit product costs
Explanation:
Absorption costing is the costing convention that is used when fixed costs need to be apportioned to the production of goods and services.
When a company has idle capacity, any production done using that idle capacity would incur no fixed costs because the fixed costs for the entire capacity, both idle and non-idle have been covered already as fixed costs are charged on the entire company capacity.
Absorption costing is therefore not relevant here as the company will use its sufficient idle capacity that has already incurred fixed costs.
Answer: Option (D)
Explanation:
Checkmark in the post reference column of general journal refers to the fact that amount has been recorded in subsidiary ledger. As for each of the general ledger account there tends to lie a subsidiary ledger and the cumulative balance of the subsidiary ledger is also presented in balance sheet. For example, there are "n" number of the vendors in a business, but in the balance sheet only one account lies under the heading creditors. This is so, as posting entry the sub-ledger of the individual vendor is referred and accordingly, the cumulative balance of all vendors is presented in balance sheet as a final general ledger account.
Answer:
30600 less 25 000 = 5600
increase in net income
Explanation
1400 units 1000 units
sales 224 000 160 000
(1400*160) (1000*160)
variable costs (106 400) (48 000)
(1400*76) (1000*48)
contribution margin 117 600 112 000
fixed costs (87 000) (87 000)
net operating income 30 600 25000
