Answer:
Total capitalized cost 24,980
Explanation:
The shipping and installation cost are capitalzied as they are cost needed to make the equipment ready to use.
The down payment will be in his full amount as it is done "today".
The the note, which is an annuity will be multiplied by the annuity factor
and the note
down payment: 4,000
shipping charges 2,000
installation 3,500
6,000 annuity x 2.58 = <u> 15,480 </u>
Total capitalized cost 24,980
Answer:
$71,000
Explanation:
The computation of operating income is shown below:-
Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)
= (43,000 × $3.80) + ($68,000 × (100% - 30%))
= (43,000 × $3.80) + ($68,000 × 70%)
= $163,400 + $47,600
= $211,000
Loss in Income if part is bought = Total costs if company bought - Total costs originally
= $211,000 - $140,000
= $71,000
Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.
According to answers.com its greenbacks
