Answer:Actual returns is the actual gain or loss an investor gets on an investment while Expected return is the return an investor is expected to get on an investment which can be positive or negative.
Explanation: Actual returns is the return an investor actually receives on his investment which can affects its net worth positively or negatively. It can be referred to as the internal rate of return on an investment.
Expected return is also known as anticipated rate of return. It is not certain but it is an expectation. It can be calculated as the expected value of an investment. It is used to calculate the viability of an investment. It is historical in nature and therefore it does not have a guaranteed outcome.
Answer:
$9000
Explanation:
Depreciation is a systematic allocation of the cost of an asset over its useful life. One method of depreciation is the straight line method where the value of an asset is uniformly and gradually written off over its useful life
<u>Working</u>
Cost of asset - $90000
Useful life - 9years
Salvage value - $9000
Fiscal year - (Jan 1- Dec 31)
Depreciable amount- (90000-9000)= $81000
Annual depreciation (straight line ) 81000/9 = $9000
December 31 2017 depreciation expense = $9000*1/2 = 4500
Decemebr 31 2018 depreciation expense = $9000
Answer:
Tami and Construction Inc. Vs. Frank
Can Frank sue Tami or Construction, Inc. and recover damages if either party breaches the contract?
Frank will not be successful if he sues either party because he is an incidental beneficiary.
Explanation:
Frank is just an incidental beneficiary and a third party who benefits from the contract between Tami and Construction, Inc. The contract is not intended to benefit Frank. Therefore, Frank does not have any legal rights under the contract. He cannot successfully sue Tami or Construction, Inc. if either party breaches the contract. He lacks the contractual rights to sue either party.
Answer:
D) When incremental revenues exceed incremental costs
Explanation:
Incremental revenues are the additional revenues generated by selling additional units, or in this case an special order. Incremental costs are the additional costs generated by accepting the special order.
Generally when a special order is being considered, the company must first determine if the additional output is possible with the current capacity, and if so, which additional costs would apply to the special order. Generally certain fixed costs are not included in the cost analysis of special orders, and only variable costs are used to determine if it generates profits or not.
The contribution margin per unit is $7.4.
<h3>What is
the contribution margin?</h3>
The contribution margin is the percentage of a product's sales revenue that isn't consumed by variable costs and goes toward paying the firm's fixed expenses.
One of the main components of break-even analysis is the idea of contribution margin.
Labor-intensive businesses with limited fixed expenses typically have low contribution margins, whereas capital-intensive, industrial corporations typically have high contribution margins.
Contribution margin per unit = Revenue per Unit ₋ Variable Expenses per Unit.
Contribution margin per unit = $23.55 ₋ $16.15
Contribution margin per unit = $7.4
Therefore, the contribution margin per unit is $7.4.
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