Answer:
$9 profit are made per unit sales.
650 unit sales should be made.
Explanation:
STEP1: What will be Hooper's profit in selling one sweatshirt.
Profit = selling price - cost price
Cost price includes all the expenses done.
Profit = $34 - ($8 + $17) = $9
Therefore Hooper will have $9 as profit if one student sales one sweatshirt.
STEP2: The Quantity of sweatshirt that Hooper needs to purchase in order to achieve his profit target.
Since he Target $5,850.
Therefore:
$5,850 ÷ $9 = 650 sweatshirt
Therefore;
If Hooper sales the sweatshirt at $34 per unit, he will achieve $9 as profit. And if he chooses to achieve $5,850 as profit, he has to place a one time order for 650 sweatshirt, that may arrive in batches.
Answer: b. $30; $20; $0
Explanation:
<em>Admission prices to Dollywood are $50 for a one-day ticket, $80 for a two-day ticket, and $100 for an annual pass. Based on these prices, the marginal cost of visiting Dollywood the second day is </em><em><u>$30</u></em><em>, the third day is </em><em><u>$20</u></em><em>, and the fourth day is </em><em><u>$0.</u></em>
The marginal cost is the extra cost per day of going to Dollywood.
Second day
Marginal cost = Second day price - First day
= 80 - 50
= $30
Third day
Marginal cost = Third day price - Second day
= 100 - 80
= $20
Fourth Day
Marginal cost = Fourth day price - third day
= 100 - 100
= $0
Answer:
Closing Inventory = $550000
Explanation:
The cost of the closing inventory at December 31 can be calculated by taking the trading part of the income statement where we calculate the cost of the goods sold. The cost of the goods sold is the cost associated with the sale of goods made during the year. The cost of the goods sold is calculated as follows,
Cost of Goods sold = Opening Inventory + Purchases - Closing Inventory
Plugging in the values of Cost of goods sold, opening inventory and purchases, we can calculate the closing inventory.
1025000 = 625000 + 950000 - Closing Inventory
Closing Inventory = 1575000 - 1025000
Closing Inventory = $550000
Answer with explanation:
Part 1. Straight-line depreciation can be calculated using the following formula:
Straight-line depreciation = (Cost of Asset - Residual Value) / Useful Life
Now by putting the values of each parameter, we have:
Straight-line depreciation = ($135,000 - Zero) / 5years = $27,000
So this depreciation will be charged to the asset to remainder of its life.
Part 2. We can calculate depreciation using double declining balance method whose formula is as under:
Double Declining Balance Depreciation = 2 X Cost of the asset/Useful Life
By putting values, we have:
Double Declining Balance Depreciation = 2 * $135,000 / 5 Years = $54,000
The depreciation would be charged each year unless it fells below the salvage value of the asset, which in this question is given and is zero.
Part 3.
Following are the main questions that we must consider before opting to any depreciation method:
- Does the cost of the asset chosen is accurate and in-accordance to International Financial Reporting Standards.
- Does the estimated Residual value of the asset is forecasted accurately. International accounting standard IAS 16 says that the scrap value must be discounted and its present value must be considered as a scrap value.
- Is the useful life of the asset estimated is in-accordance to the pace of technological advances?
- The asset's fair value must be considered each year to analyze whether or not the asset value in the market is aligned with our carrying value calculated or not.
So these were the factors which decides which method of depreciation must be opted or what estimate changes are required in calculating the fair value of the asset.
Answer: The correct answer is : c. flexible production capacity can be configured to maximize profits in the new environment.
Explanation: Starting from a fixed volume of production, a company is more flexible if it produces a larger quantity of products. Flexibility will provide the ability to have operational production lines in a defined time interval.