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Vinvika [58]
3 years ago
11

The Tattle Teller has a printing press sitting idly in its back room. The press has no market value to another printer because t

he machine utilizes old technology. The firm could get $480 for the press as scrap metal. The press is six years old and originally cost $174,000. The current book value is $3,570. The president of the firm is considering a new project and feels he can use this press for that project. What value, if any, should be assigned to the press as an initial cost of the new project?
Business
1 answer:
Mrac [35]3 years ago
4 0

Answer: $480

Explanation:

Given that,

Scrap value of metal = $480

press is six years old, Original cost = $174,000

Current book value = $3,570

Since, we know that the realizable value of the printing press is only $ 480, so  tattle teller should assign the same as the initial cost of the new project.

Hence, $480 will be the initial cost of press for the new project.

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g A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and rises to $55
azamat

Answer:

$53

Explanation:

Call option is $3

Exercise price is $50

The stock is currently priced at $49

It rises to $55 on the expiration date

Therefore the cost price at which the speculator will break even can be calculated as follows

= ($50-$3)+($55-$49)

= $47 + $6

= $53

8 0
2 years ago
Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competit
larisa86 [58]

Answer: The price level  chosen to maximize profits will be $ 6.71

Explanation:

Whenever there is price fixing between two competitors, and one of the competitor decides to choose a price level. Such competitor must ensure that the price level chosen to maximize profit does not exceed his or her competitor's marginal cost but can be  above his or her marginal cost .

Since the price fixing is $10 from previous cartel price so the best price level to maximize the profit would be less than my  rival's  price of   $ 6.72 and more than my  marginal cost of $ 6.70  which is $ 6.71

8 0
3 years ago
Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following? a. gross
Nastasia [14]

Answer: b. Net requirements

Explanation: Lot sizing is used to consolidate the calculated net requirements by a certain unit. It puts into consideration cost reduction and work efficiency. One method of lot sizing is the lot-for-lot where the net requirements occurring for each period are the order quantity which generates greater volume of orders with smaller quantities per order and inventory investment as a result of ordering exact requirements only. The order sizes for component parts are essentially determined directly from net requirements.

5 0
3 years ago
Jolly Candies is a U.S.-based company that manufactures and distributes candy bars and snack foods globally. The company sources
Anon25 [30]

Answer:

suppliers

Explanation:

Task environment encompasses all external factors that are capable of influencing the business goals or operations of a company. These external factors include customers, suppliers, labor supply, competitors, special interest groups. Most play a major role in influencing the operations of a business, hence are duly considered by any business organizations.

The business relationship highlighted in the question above represents the suppliers dimension of the external factors or task environment, and it affects Jolly Candies operations since they rely on the raw materials supplied by South America Companies to produce candy bars and snack foods they supply globally.

4 0
3 years ago
In a recent annual report, Apple Computer reported the following in one of its disclosure notes: "Warranty Expense: The Company
IrinaVladis [17]

Answer:

2) Matching

Explanation:

The matching principle refers to that principle at which the revenues that are recognized in the particular year should be matched with the expenses that are incurred in that particular year

According to the given scenario, it talks about the matching principle at which the expenses are to be reported when the related revenue is recognized

Therefore, it follows the matching principle.

6 0
3 years ago
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