Answer:
$1.5
Explanation:
Given:
Charges per order = $30
Charges per case = $50
1 case = 5 bags of fertilizers
Number of fertilizers bags needed per year = 2000 bags
Annual holding cost, C₀ = 30%
Now,
Annual demand for cases, D = 
= 
= 400 cases
thus,
Annual unit holding cost per case, 
= 30% of $50 i.e $15
Thus,
Economic Order quantity ( EOQ ) =
on substituting the respective values, we get
EOQ =
or
EOQ = 40
Now,
Annual ordering cost = Ordering cost × Number of orders
= C₀ × 
= $30 × 
= $300
Annual inventory holding cost
= Annual unit inventory holding cost × Average inventory
= × 
= $15 × 
= $300
Now,
Sum of annual ordering and holding cost per case of fertilizer
= $300 + $300
= $600
Therefore,
Annual ordering and holding cost per case of fertiliser
= 
= 
= $1.5
Answer:
d. increase equity by $4,900
Explanation:
Jack Snow received $14,700 on December 1 for services to be rendered in December, January and February. It will not be recorded as income because it hasn't been earned.
Adjusting entries will be passed at the end of each month to recognise amount earned.
Since it is for 3 months, monthly amount earned = 14,700/3= $4,900
At December 31 Retained earnings will be credited for $4,900.
Retained earnings is part of owner's equity.
So equity will increase by $4,900
Usability
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I believe the answers are:
a. there is no limit on the number of owners a corporation may have, thus allowing the corporation to raise substantial amounts of capital.
They do this by selling shares on the stock market. When the shares is sold in this place, every individuals who can afford the price of a single share are eligible to be part owner of the corporation.
b. the life of the business can continue beyond the death of any of the owners.
In corporations, when one of the owners somehow died, the ownership of the corporations would be transferred to the person whould receive the inheritence (usually immdediate family members)
c. the corporation can use the assets of the owners to pay for corporate liabilities.
This happen during the liquidation process. To pay for corporate liabilities, owners had to sell their assets with the equal value of their percentage of their ownership times the amount of liabilities.
