Answer:
A. D) $189,583
B. B. $49,500
Explanation:
A. The computation of the flexible budget will report for the variable cost is shown below:-
= Static Variable cost ÷ Static sales volume × Actual sales volume
= $175,000 ÷ 12,000 × 13,000
= $189,583.33
B. The number of fixed costs in both flexible budget and static budget would be the same
= $49,500
So, flexible budget will report $49,500 for the fixed costs
Answer:
Answer is (A) $5,173
Explanation:
In calculating the net present value of an investment we discount the future cash flows by multiplying the future cashflows by the discounting factors attached to each year the cashflows will arise.
See Attachment for calculation done.
Answer:
A. $518,000
Explanation:
The computation of the sunk cost is shown below:
= Purchase value of the machine that buys 7 years ago
= $518,000
As sunk cost is the cost that already spent and not relevant for decision making
So according to the given options, the first option is correct
Answer: Partnership
Explanation: In simple words, partnership refers to an agreement between two or more independent parties to join their forces for achieving a common business goal with the ultimate objective of earning profit.
In the given case, Dan and Emily were sole proprietors and now they are joining their forces also the case states their new entity will not be a separate entity and both of the owners will be having unlimited debt.
Hence from the above we can conclude that this is a partnership business.
