1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pshichka [43]
3 years ago
12

Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Bos

ton area. The contract price of $750 million is to be paid as follows: $250 million at the time of signing; $250 million on December 31, 2016; and $250 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $240 million in 2016 and $360 million in 2017.
a. Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method.
Enter dollar amounts in millions.
Business
1 answer:
aalyn [17]3 years ago
8 0

Answer:

2016: $300 million; 40%; $60 million

2017: $450 million; 60%; $90 million

Explanation:

Total costs:

= Costs incurred in 2016 + Costs incurred in 2017

= $240 + $360

= $600

In 2016:

Percent of total excepted costs:

= Costs incurred in 2016 ÷ Total costs

= $240 ÷ $600

= 0.4 or 40%

Revenue recognized:

= Percent of total excepted cost × Contract price

= 0.4 × $750 million

= $300 million

Income = Revenue recognized - Costs incurred in 2016

             = $300 million - $240 million

             = $60 million

In 2017:

Percent of total excepted costs:

= Costs incurred in 2017 ÷ Total costs

= $360 ÷ $600

= 0.6 or 60%

Revenue recognized:

= Percent of total excepted cost × Contract price

= 0.6 × $750 million

= $450 million

Income = Revenue recognized - Costs incurred in 2017

             = $450 million - $360 million

             = $90 million

You might be interested in
Patagonia donates at least 1% of profits to support environmental causes. There products are also produced under safe, fair, leg
Alchen [17]

Answer: corporate social responsibility practice

Explanation:

Corporate social responsibility occurs when organizations contribute to societal goals by supporting practices that are ethically oriented and have a positive effect on the economy.

Since Patagonia donates at least 1% of profits to support environmental causes and is contributing positively to the economy, then Patagonia is practicing corporate social responsibility practices.

6 0
3 years ago
A company had an unadjusted Cost of Goods Sold of $1,690,000. The company closes its underapplied or overapplied overhead to Cos
lakkis [162]

Answer:

"$1,673,750" is the appropriate answer.

Explanation:

The given values in the question are:

Applied overhead,

= $666,250

Actual overhead,

= $650,000

Unadjusted cost,

= $1,690,000

Now,

The overapplied overhead will be:

= Applied \ overhead-Actual \ overhead

= 666,250-650,000

= 16,250 ($)

hence,

The goods sold's adjusted cost will be:

= Unadjusted \ cost-Overapplied \ overhead

= 1,690,000-16,250

= 1,673,750 ($)

8 0
3 years ago
You run a hotel with 200 rooms. Fixed daily cost is $1500 which includes staff salary and property charges, maintenance cost is
erica [24]

Answer:

The revenue is $2,450

Explanation:

The computation of the revenue is shown below:

= Sales - variable cost - additional costs - fixed cost

where,

Sales = Selling units × price per unit

         = 50 rooms × $100

         = $5,000

Variable cost = variable cost × price per unit

                      = 50 rooms × $15

                      = $750

The other cost value would remain the same

Now put these values to the above formula  

So, the value would equal to

= $5,000 - $750 - $300 - $1,500

= $2,450

6 0
3 years ago
Read 2 more answers
Bridget has an outstanding balance on four different credit cards. Which method of paying off her credit card debt will save her
Rufina [12.5K]
Snowballing her payments according to the highest interest rate or making fixed payments I'm not sure between those two
6 0
3 years ago
Read 2 more answers
You place $4,000.00 in a bank account with an interest rate of 5.25% APR and another $2,000.00 in an account with an interest ra
RUDIKE [14]

The $4000 with an APR of 5.25%.

<h3>What is APR?</h3>

The term annual percentage rate of charge, sometimes referred to as a nominal APR and sometimes referred to as an effective APR, refers to the interest rate for the entire year, rather than just a monthly fee/rate, as applied to a loan, mortgage loan, credit card, and so on. It is a finance charge calculated on an annual basis.

A good credit card APR is 14% or less. That's lower than the average credit card APR and comparable to the rates charged by credit cards for people with excellent credit, which typically have the lowest regular APRs. A great credit card APR, on the other hand, is 0%.

To know more about  APR follow the link:

brainly.com/question/24703884

#SPJ4

5 0
1 year ago
Other questions:
  • ____ act as the export sales department for a manufacturer. Group of answer choices International freight forwarders Shippers as
    13·1 answer
  • Tech Surge applies research into physics and biochemistry to create advanced surgical instruments and implants. Its research dep
    6·1 answer
  • Which of the following would help reduce the amount of frictional unemployment? Choose one or more: A. Websites that advertise j
    10·1 answer
  • The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance
    13·1 answer
  • Which of the following is true of work?
    5·1 answer
  • Erin Brushwood sells gourmet chocolate chip cookies. The results of her last month of operations are as follows: Sales revenue $
    12·1 answer
  • "when the number of units produced exceeds the number of units sold, net income under absorption costing will be:"
    12·1 answer
  • 11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
    11·1 answer
  • ____ anxiety is the feeling that unless an organization makes a change, it is going to be out of business or fail to achieve som
    10·1 answer
  • A farmer and an investor negotiate a Futures Contract where Tomatoes will be sold
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!