Answer: $2,210,000
Explanation:
From the question, we are informed that the Baldwin company will sell 100 units (x1000) of capacity from their Baker product line and that each unit of capacity is worth $6 plus $4 per automation rating.
We are further told that the Baldwin company will sell the capacity for 35% off. The amount they'll receive when the capacity is sold will be:
The cost per unit will be
= 6 + (4 × 7)
= 34
The worth of the capacity will now be:
= 100000 × 34
= 3,400,000
The amount received will be:
= 3400000 × (1-35%)
= 3400000 × 0.65
= $2,210,000
Answer:
1. a. Only major materials and components.
Only the major materials and components are include as direct materials because these are the materials that directly needed for production.
b. Only hourly production workers (aka assembly workers).
The direct labor has to be those people who are directly involved in production which in this case is the assembly workers. Managers and Supervisors are not integral so are not direct labor.
c. Both big items that cannot be traced (e.g., factory rent) and small items that are not worth tracing (e.g., glue, grease).
All other items involved in production should be included as manufacturing overheads including big items and small items that cannot be traced.
2.
Rent for the factory building ⇒ <u>Manufacturing Overhead (OH).</u>
Cost of engines used in production ⇒ <u>Direct materials (DM).</u>
Depreciation on production equipment ⇒ <u>Manufacturing Overhead (OH). </u>
Cost of lubricant used in production. ⇒<u> Manufacturing Overhead (OH). </u>
Production supervisor's salary. ⇒ <u>Manufacturing Overhead (OH). </u>
Assembly workers' wages. ⇒ <u>Direct Labor.</u>
Answer:
C. Equity Financing
Explanation:
Based on all the details and financial steps that Jacob and Harry have undergone it seems that they are using Equity Financing. This type of financing refers to selling stocks of the company in order to raise capital, and making the investors partial owners of the company. Which is what Jacob and Harry seem to be doing by selling stocks of the company to family and friends in order to raise the capital they need to fund their business.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.