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3 years ago

Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2015.

Business

1 answer:

Slav-nsk [51]3 years ago

6 0

Answer:

CHEESE FACTORY INCORPORATED

Income Statement

For the Year Ended August 31, 2015

Revenues:

Sales revenue $1,738,000

Total revenue $1,738,000

Expenses

Salaries and wages expense $975,000

Office expenses $115,000

Utilities expense $550,000

Total expenses $1,640,000

Net income $98,000

CHEESE FACTORY INCORPORATED

Statement of Retained Earnings

For the Year Ended August 31, 2015

Retained earnings, beginning $414,000

Add: Net income $98,000

Less: Dividends $14,000

Retained earnings, ending $498,000

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If fixed costs do not change, then marginal cost A. equals the change in average variable cost divided by the change in output.

babunello [35]

Answer:

B. Equals the change in variable cost divided by the change in output

Explanation:

All those business expenses which are independent on the level of goods or services that the company produces are included in the fixed costs. These include lease and rent payments, insurance, salaries, interest payments etc.

The change in total cost which arises due to the increment in the cost of produced good by one unit is termed as marginal cost.

When fixed cost is not changing, the marginal cost is calculated by dividing the difference in total cost by difference in output.

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4 years ago

Jordan enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cas

viktelen [127]

Probabaly (A) It seems the most reasonable.

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3 years ago

Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment

cestrela7 [59]

Answer:

C3 should be chosen

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

For project C1:

Cash flow in year 0 = $-252,000

Cash flow in year 1 =$20,000

Cash flow in year 2 =116,000

Cash flow in year 3 =176,000

I = 10%

NPV = $5,719

For project C2

Cash flow in year 0 = $-252,000

Cash flow in year 1 = $104,000

Cash flow in year 2 = $104,000

Cash flow in year 3 = $104,000

I = 10%

NPV = $6,633

For project C3

Cash flow in year 0 = $-252,000

Cash flow in year 1 = $188,000

Cash flow in year 2 =68,000

Cash flow in year 3 =56,000

I = 10%

NPV = $17,181

C3 should he accepted because it has the highest NPV

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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3 years ago

Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishi

nexus9112 [7]

Answer:

Explanation:

For computing the cost of inventorying, we have to apply the formula which is shown below:

= Total costs ÷ Number of items

1. Cost of inventorying = Total costs ÷ Number of items

= $125 ÷ 100 items

= $1.25

Total cost = $100 + $25 = $125

2. Cost of inventorying = Total costs ÷ Number of items

= $150 ÷ 150 items

= $1

Total cost = $100 + $25 + $25 = $150

3. Cost of inventorying = Total costs ÷ Number of items

= $175 ÷ 160 items

= $1.10

Total cost = $100 + $25 + $25 + $25 = $175

$25 is the each worker pay

To minimize the cost we required two workers as the cost of inventorying is lesser than other two.

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3 years ago

Which of the following is another name for hard skills?

Yakvenalex [24]

Answer:

Management skills is the answer

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3 years ago

Read 2 more answers