Answer:
The amount of depreciation expense each year is (D) $31,900
Explanation:
Total cost of the equipment = Purchased cost + Shipping charges + foundation and install fee = $160,000 + $2,000 + $12,500 = $174,500
MacKenzie Manufacturing use the straight-line method, Depreciation Expense each year is calculated by following formula:
Annual Depreciation Expense = (Cost of the equipment − Residual Value )/Useful Life = ($174,500 - $15,000)/5 = $159,500/5 = $31,900
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Profit = Sales - Expenses
<span>Expenses = Fixed + Variable </span>
<span>No. of units sold = $550,000 / 55 = 10,000 </span>
<span>Variable expenses = $44 x 10,000 = $440,000 </span>
<span>Expenses = 20,000 + 440,000 = $ 460,000 </span>
<span>So, profit = 550,000 - 460,000 = $ 90,000.</span>
Answer:
<em>Net operating income = $1,875</em>
Explanation:
<em>The operating leverage is the ratio of Contribution to Net Operating Income. It is used to analyse the cost structure of a business to determine how much of its total cost is fixed.</em>
It is computed as follows:
<em>Operating leverage = Contribution/Net operating income</em>
Contribution = Contribution margin × Sales revenue
= 15% × $150,000
= $22,500
Substitute this into the operating leverage equation
12 = 22,500/ y
y = 22,500/12
y = 1,875
<em>Net operating income = $1,875</em>
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Learn more about Meditation here brainly.com/question/19069324
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