Answer:
Cost of land= $1,124,100
Explanation:
<em>According to International accounting standards(IAS) 16 ,The cost of land includes purchase cost plus all other costs necessary to bring and make it ready for the intended use. </em>
<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>
Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.
However, remember that land is not depreciated because it has an infinite life span.
So using the historical cost principle the cost of the land
Cost of land = 990,000 + 49,600 +2300 + 6, 900 + 75,300= 1,124,100.00
Cost of land= $1,124,100
Answer and Explanation:
The computation is shown below;
The net profit margin is
= Net income ÷ sales revenue
= $184,000 ÷ $574,000
= 32%
The asset turnover is
= Sales revenue ÷ average of assets
= $574,000 ÷ ($2,142,000 + $1,998,000) ÷ 2
= $574,000 ÷ $2,070,000
= 0.28 times
c. The return on assets is
= Net income ÷ average of assets
= $184,000 ÷ $2,070,000
= 0.089
= 8.89%
Answer:
134 books
Explanation:
The breakeven point is the number of units to be sold that will make the total sales equivalent with the total cost, such that the company neither makes a profit nor a loss.
Let the number of units sold to break even be c
5c = 1.25c + 500
5c - 1.25c = 500
3.75c = 500
c = 500/3.75
c = 133.33
≈ 134 books
Answer:
$950 in order to maximize the revenue.
Explanation:
The computation of monthly rent in order to maximize revenue is shown below:-
R (x) = Rent price per unit × Number of units rented
= ($900 + $10 x) × (100 - x)
= $90,000 - 900 x + 1000 x - 10 x^2
R (x) = -10 x^2 + 100 x + $90,000
Here to maximize R (x), we will find derivative and equal it to zero
R1 (x) = -20 x + 100 = 0
20 x = 100
x = 5
Therefore the monthly rent is p(5) = $900 + 10(5)
= $900 + 50
= $950 in order to maximize the revenue.
Answer:
$13,640 Unfavorable
Explanation:
Data provided
Actual hours = 2,600
Standard hours = 6.0
Standard variable overhead rate = $12.40
The computation of variable overhead efficiency variance is shown below:-
Variable overhead efficiency variance = (Actual hours - Standard hours) × Standard rate
= (2,600 - (250 × 6.0)) × $12.40
= (2,600 - 1,500) × $12.40
= 1,100 × $12.40
= $13,640 Unfavorable
Therefore for computing variable overhead efficiency variance we simply applied the above formula.
