Amounts of money a company owes are called?

Earth Movers, Inc., uses dynamite to prepare land for highway projects. Strict liability is imposed on this activity because:___

skad [1K]

Answer: c. The activity is abnormally dangerous

Explanation:

Strict liability is also referred to as the absolute liability, and this term means legal responsibility for injury or damages, despite the fact that the individual or business that's found strictly liable wasn't negligent or probably at fault for the injury to damages.

In this case, if Earth Movers, Inc., uses dynamite to prepare land for highway projects, a strict liability is imposed on this activity because it is abnormally dangerous.

8 0

3 years ago

. Tiger Mfg. owns a manufacturing facility that is currently sitting idle. The facility is located on a piece of land that origi

N76 [4]

Answer: $1,200,000

Explanation:

The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.

This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.

4 0

3 years ago

Lillich, Inc., manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each p

Goryan [66]

Answer:

Lillich, Inc.

c. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $5.63.

Explanation:

a) Data and Calculations:

Direct labor rate = $28.00 per DLH

Product U6 Product R5 Total

Expected production 690 1,060

Direct materials cost/unit $250.40 $167.80

Direct Labor Hours/unit 8.9 5.9

Total direct labor hours 6,141 6,254 12,395

Direct labor costs $171,948 ($28*6,141) $175,112 ($28*6,254)

Total direct materials cost $172,776 ($250.4*690) $177,868 ($167.8*1,060)

Total overhead $636,360 $658,752 $1,295,112

Total production cost $981,084 $1,011,732

Expected production 690 1,060

Cost per unit $1,421.86 $954.46

Traditional costing:

Direct labor costs $171,948 ($28*6,141) $175,112 ($28*6,254)

Total direct materials cost $172,776 ($250.4*690) $177,868 ($167.8*1,060)

Total overhead $641,612 $653,418 $1,295,112

Total production cost $986,336 $1,006,398

Expected production 690 1,060

Cost per unit $1,429.47 $949.43

Allocation of overhead based on direct labor hours

= $ 1,295,086/12,395

= $104.48 per DLH

Product U6 = $641,612 ($104.48 * 6,141)

Product R5 = $653,418 ($104.48 * 6,254)

Estimated Expected Activity

Activity Cost Pools Activity Overhead Product Product Total

Measures Costs U6 R5

Labor-related DLHs $ 201,638 7,125 7,280 14,405

Production orders Orders 72,840 1,350 1,250 2,600

Order size MHs 1,020,608 6,500 6,800 13,300

Total $ 1,295,086

Overhead rates:

Labor-related = $201,638/14,405 = $14.00 per DLH

Production orders = $72,840/2,600 = $28.00 per order

Order size = $1,020,608/13,300 = $76.74 per machine hour

Overhead allocation:

Product U6 Product R5 Total

Labor-related $99,750 (7,125*$14) $101,920 (7,280*$14) $201,670

Production orders 37,800 (1,350*$28) 35,000 (1,250*$28) 72,800

Order size 498,810 (6,500*$76.74) 521,832 (6,800*$76.74) 1,020,642

Total overhead $636,360 $658,752 $1,295,112

5 0

3 years ago

If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is:_________

Ira Lisetskai [31]

If a customer sells short 100 xyz at 79 and simultaneously writes 1 xyz jan 80 put at 5, the maximum gain potential is: 400.

<h3>What is maximum gain potential/capital gain?</h3>

When an investor invests in or sells put option on stocks she owns, she is selecting a good approach to hedge against loss or bring additional funds in her account. Whenever a seller invests cover call options, this is the most frequent form.

Now according to the question-

A short stock with such a short puts is an income strategy with unlimited loss potential.
Although the customer will profit if the price falls, the customer signed an in-the-money put that would be exercised, requiring the client to acquire stock at 80 for a $100 loss here on stock shorted at 79.
However, the customer collected $500 in premiums, for a total gain of $400.
The break even point for a brief stock-short put is the short sale price plus the premium.
In this scenario, the break-even point is 84, and the maximum gain is four points, between 84 to 80.

Therefore, the maximum gain potential is 400.

To know more about the maximum gain/capital gain, here

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4 0

2 years ago

Medlock Company sold inventory on credit for $3,000, terms 2/10, n/30. The cost of the merchandise to Medlock was $2,400. How mu

Finger [1]

Answer:

Medlock will receive $2,940

Explanation:

Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

According to given data

Sales = $3,000

As the payment is made within discount period, so discount will be availed

Discount = $3,000 x 2% = $60

Now deduct the discount from due balance to calculate the amount received.

Amount Received = $3,000 - $60 = $2,940

4 0

4 years ago