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expeople1 [14]
3 years ago
6

Wisconsin Snowmobile Corp. is considering a switch to level production. Cost efficiencies would occur under level production, an

d after tax costs would decline by $36,000, but inventory would increase by $300,000. Wisconsin Snowmobile would have to finance the extra inventory at a cost of 13.5 percent.
A. Determine the extra cost or savings of switching over to level production. Should the company go ahead and switch to level production?

B How low would interest rates need to fall before level production would be feasible?

Business
1 answer:
castortr0y [4]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the image below.

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.  

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Moshi and her best friend have phrases they use with each other that have specific meanings. For example, when they’re upset abo
Bingel [31]

Answer:

Moshi and her best friend have agreed on the meanings of each of the symbols.

Explanation:

A symbol is a thing that is used to represent something else, particularly when a physical object is used to represent an abstract thing.

Therefore, those phrases used by Moshi and her best friend are symbols they have jointly agreed upon to use as representations specific meanings. They are effective because of their joint agreement on them. Any other phrases that they have not jointly agreed upon will have no meaning to them and they will not be effective.

4 0
3 years ago
What is an advantage of using a comparsion method of assesment ?
stepan [7]
B (sorry if its wrong!!)
5 0
2 years ago
Equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 ope
CaHeK987 [17]

Answer:

(a). Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

(b). 1st Year Depreciation = $20,000

for 2nd year depreciation = $26,000

(c) 1st year Depreciation= $60,000

2nd year Depreciation = $36,000

Explanation:

a).

Annual Depreciation of Equipment = (Cost of Equipment - Residual Value) ÷ Useful Life of Equipment

= ($150,000 - $30,000) ÷ 5

= $24,000

Rate of Straight Line Depreciation = Annual Depreciation of Equipment ÷ (Cost of Equipment - Residual Value) × 100

= 24,000 ÷ ( $150,000 - 30,000) × 100

= $24,000 ÷ $120,000 × 100 = 20%

Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

b). Unit Of Production For 1st Year Depreciation= (Cost Of Equipment -Residual Value) × Annual Production Units ÷ Total Operating Hours

= ($150,000 - $30,000) × 2,500 ÷ 15,000 = $20,000

Unit of Production for 2nd year depreciation = ( $150,000 - $30,000) × 32,50 ÷ 15,000

= $26,000

c). Declining Balance Depreciation Rate = Straight Line Depreciation Rate × 2

= 20% × 2 = 40%   (Because Declining Balance at Twice the Straight Line Rate)

1st year Depreciation= $150,000 × 40÷100 = $60,000

2nd year Depreciation = ($150,000 - $60,000) × 40÷100 =$36,000

8 0
3 years ago
Blossom Company purchased a new machine on October 1, 2017, at a cost of $66,000. The company estimated that the machine has a s
Ugo [173]

Answer:

Results are below.

Explanation:

Giving the following information:

Purchase price= $66,000

Salvage value= $5,700

Useful life= 6

F<u>irst, we need to calculate the annual depreciation using the following formula:</u>

<u></u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (66,000 - 5,700) / 6= 10,050

<u>2017:</u>

Annual depreciation= (10,050/12)*3= $2,512.5

<u>2018:</u>

Annual depreciation= $10,050

8 0
3 years ago
__________ is also called back-office processes, these are invisible to the external customer but essential to the effective man
mrs_skeptik [129]

Answer:

The correct word for the blank space is: Business-facing processes.

Explanation:

Business-facing processes are all those activities engaged by corporations to provide their goods or services to their clientele that are not portrayed to the final user. Those activities involve business planning, employee management, and third-party communications that might imply providing a customer's product.

5 0
3 years ago
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