Answer:
Increase by $97,650
Explanation:
Increment Sale $247,500
(450 * $550)
<u>Less Increment cost</u>
Direct materials $90,000
(450 * $200)
Direct labor $36,000
(450 * $80)
Manufacturing overhead $20,250
(450 * $150 * 30%)
Administrative expenses <u>$3,600</u> <u>$149,850</u>
(450 * $80 * 10%)
Profit will increase by <u>$97,650</u>
Answer:
Cost of leasing over buying is $144.59
Explanation:
For computing the cost of leasing the laptop over buying it outright, we have to calculate the present value is shown below:
Given that,
Future value = $0
Rate of interest = 14% ÷ 12 months = 1.17%
NPER = 4 years × 12 month = 48 months
PMT = $75
The formula is shown below:
= PV(Rate;NPER;-PMT;FV;type)
So, after solving this, the present value is $2,744.59
And, the buying amount is $2,600
So, the difference is
= $2,744.59 - $2,600
= $144.59
Answer:
Option 3
Explanation:
Earnings & profits (E&P) is the measure of a corporation’s economic ability to pay dividends to its shareholders. An up-to-date E&P calculation is important for many corporate transactions, including determining whether a distribution to shareholders is a taxable dividend.
The E&P allocated to Andrew's distribution
= 160,000 * 150,000/(350,000+150,000)
= 160,000 * 150,000/500,000
= 48,000
Option C
A test balance is used to detect any calculation error that may have occurred within the accounting system. For this, it is sought to verify if the total debits and the total credits are equal, for this the balance of all accounting books is compiled in column totals of both debit and credit. A company usually prepares a trial balance periodically, usually at the end of each reporting period.
In this case, to carry out the trial balance, you must first clarify the name of the company, the title of the trial balance and the date on which the trial balance is prepared, then proceed to list the ledger accounts and enter the debit and credit balances in the respective columns, then the columns are totalized and finally it is verified that the credit totals are equal to the debit totals
Answer
The correct order of the steps is (3), (2), (4) and (1)
5% of 2265$ is 113,25$
Because 5% is 5/100 so 5 x 2265$ = 11325$
11325$ : 100 = 113,25$
Second year cost is the first year’s plus 5% so
2265$ + 113,25$ = 2378,25$ (second year cost)
