Answer:
Correct.
Explanation:
The fixed cost are fixed in the short-run but i nthe long-run all cost are variable as we can decide to don't do a new lease for the machinery once it finish the current one, to move to another place to reduce the rent expense or not purchase an insurance that among other are example of fixed cost that the company can change in the long run.
now, in the short-run we will continue if there is a positive contribution that is, when we pay a portion of the fixed cost with the activities of the firm That way it is better t okeep it open an decrease the loss than closed and pay the full amount of fixed cost
Answer:
$2,500 Increase
Explanation:
Lil Beasty Company
Variable cost per unit ($17 + $1.50) $18.50
Income per unit ($19 – $18.50) $0.50
The total increase in net income ($.50 X 5,000 units) $2,500
Therefore we have increase $2,500 meaning If the offer is accepted with unused capacity, net income will increase by $2,500. The variable cost per unit will be $18.50 ($17 + $1.50); the income per unit is $.50 ($19 – $18.50); and the total increase in net income will be $2,500 ($.50 X 5,000 units)
Answer:
Please see answer below
Explanation:
The journal entry to record the issuance of 10,000 shares of no-par value preferred stock for cash at $120 per shares has a debit to cash and a credit to preferred stock for $1,200,000 ( 10,000 shares × issue price of $120 per share )
In financial aspects, the nominal values of something are its cash values in various years. Real values modify for contrasts in the value level in those years. Illustrations incorporate a heap of wares, for example, Gross Domestic Product, and pay. For a progression of ostensible values in progressive years, diverse qualities could be a result of contrasts in the value level. However, nominal values don't indicate the amount of the distinction is from changes in the value level. Genuine qualities expel this uncertainty.
Real values change over the nominal values as though costs were steady at every time of the arrangement. Any distinctions in real values are then ascribed to contrasts in amounts of the package or contrasts in various products that the cash earnings could purchase in every year.