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babunello [35]
3 years ago
10

A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variabl

e costs as follows: The locations area: Atlanta ($80,000, $20) and Phoenix ($140,000, $16) . The first number with in the parentheses is the fixed cost and the second number is the variable cost per unit If the annual demand is 20,000 units, what would be the cost advantage of the better location? Select one: A. $60,000 B. $80,000 C. $480,000 D. $20,000 E. $460,000
Business
1 answer:
Dmitry [639]3 years ago
7 0

Answer:

D. $20,000

Explanation:

Considering the cost elements of Atlanta

Fixed cost = $80,000

Variable cost per unit = $20

Where 20,000 units are produced (to meet annual demands)

Total cost = 80,000 + (20000 × 20)

                = 80,000 + 400,000

                = $480,000

Considering the cost elements of Phoenix

Fixed cost = $140,000

Variable cost per unit = $16

Where 20,000 units are produced (to meet annual demands)

Total cost = 140,000 + (20000 × 16)

                = 140,000 + 320,000

                = $460,000

Comparing the cost of production in the two locations, the cost advantage of the better location (Phoenix)

= 480,000 - 460,000

= $20,000

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Presented below is the trial balance of Bramble Corporation at December 31, 2020.
8_murik_8 [283]

Answer:

Bramble Corporation

Assets:

Current Assets:

Cash                                                  $ 201,440

Debt Investments (trading)

(at cost, $145,000)                               155,150

Accounts Receivable         437,150  

Allowance for

Doubtful Accounts             27,150     410,000

Inventory                                             601,440

Total current assets                                           $1,368,030

Long-term assets:

Debt Investments (long-term)           303,440

Equity Investments (long-term)         281.440

Land                                                   262,150

Buildings                            1,044,440

Accumulated Depreciation 152,000 892,440

Equipment                           602,150

Accumulated Depreciation 60,000   542,150

Franchises                                         160,000

Patents                                              195,000

Total long-term assets                                      $2,636,620

Total assets                                                       $4,004,650

Liabilities + Equity:

Current Liabilities:

Notes Payable (short-term)               92,150

Accounts Payable                            457,150

Dividends Payable                           140,440

Accrued Liabilities                             98,150

Total current liabilities                                        $787,890

Notes Payable (long-term)             904,440

Bonds Payable                             1,004,440

Total long-term liabilities                                $1,908,880

Total liabilities                                                $2,696,770

Common Stock ($5 par) 1,002,150

Treasury Stock                   193,150

Net Stock outstanding                    809,000

Retained Earnings, December 31    414,440

Paid-in Capital in Excess of Par        84,440

Total equity                                                    $1,307,880

Total liabilities + equity                                $4,004,650

Explanation:

a) Data and Calculations:

                                                              Debit              Credit

Cash                                                  $ 201,440

Debt Investments (trading)

(at cost, $145,000)                               155,150

Accounts Receivable                          437,150  

Inventory                                             601,440

Sales                                                                        $ 8,102,150

Cost of Goods Sold                        4,800,000

Allowance for Doubtful Accounts                                 27,150

Debt Investments (long-term)           303,440

Equity Investments (long-term)         281.440

Notes Payable (short-term)                                           92,150

Accounts Payable                                                        457,150

Dividends Payable                                                       140,440

Accrued Liabilities                                                         98,150

Notes Payable (long-term)                                         904,440

Bonds Payable                                                         1,004,440

Common Stock ($5 par)                                          1,002,150

Treasury Stock                                  193,150

Retained Earnings                                                       82,440

Paid-in Capital in Excess of Par                                  84,440

Investment Revenue                                                     67,180

Land                                                  262,150

Buildings                                        1,044,440

Accumulated Depreciation-Buildings                       152,000

Equipment                                        602,150

Accumulated Depreciation Equipment                      60,000

Franchises                                        160,000

Patents                                              195,000

Selling Expenses                           2,002,150

Administrative Expenses                 904,180

Interest Expense                               215,180

Gain                                                                              84,180

Totals                                        $12,358,460    $12,358,460

b) Income Statement for the year ended December 31, 2020:

Sales                                              $ 8,102,150

Cost of Goods Sold                        4,800,000

Gross profit                                   $3,302,150

Investment Revenue                            67,180

Gain                                                       84,180

Total Income before expenses   $3,453,510

Selling Expenses            2,002,150

Administrative Expenses  904,180

Interest Expense                215,180

Total Expenses                               (3,121,510)

Net Income                                     $332,000

Retained Earnings                              82,440

Retained Earnings, December 31  $414,440

7 0
3 years ago
WesternBioLabs Inc. is in the process of laying off 10% of its shipping and receiving employees. At the same time, it is hiring
igomit [66]

Answer:

A. Churning

Explanation:

Employee Churning is also known as employee turn-over which is an act of laying off employees while recruiting new ones. It is a measure always taken to conserve a company's limited resources. The turnover rate is given as the percentage of employees being laid off or leaving workers over a period of time. There are a lot of factors contributing to churning such as downsizing through attrition either due to recession or scarcity of company's resources.

5 0
3 years ago
questions What do you see as the main difference between a successful and an unsuccessful decision? How much does luck oues vers
ICE Princess25 [194]

Answer:

Explanation:

the difference between a successful and an unsuccessful decision is with a successful decision you would be successful and make profit since this is the subject of business and an unsuccessful decision will make you lose profit and make you lose into Investments.  there is no luck vs skill this is all skill actually.  skill has to do with this because you need to have certain experience in a certain thing to be having a successful decision.  

6 0
3 years ago
Rider Company is in the process of preparing it closing entries. It first closes its revenue accounts by crediting the Income Su
Ksivusya [100]

Answer:

B. Debit Income summary                  Debit              $ 23,000

   Retained Earnings                           Credit                                $ 23,000

Explanation:

The closing entries are recorded to close the current year's income statement  to the retained earnings account,

According to the data in the question, the revenue is closed to the credit of the income Summary  of $ 68,000 and the expenses are closed to the debit of the Income Summary of $ 45,000. This leaves a credit balance of $ 23,000 in the income summary account which is closed by debiting the income summary account and crediting the retained earnings account.

Since the revenue exceeded the expenses, the result ia  a profir which should increase the retained earnings account, which would be the case by a credit to the retained earnings account.

7 0
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The community of Desertville traditionally produces a large number of tires and a small amount of kiwi fruit. Kiwis are become i
viktelen [127]

Answer:

The answer is TRUE.

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Explanation:

The law of increasing costs states that as more factors of production are shifted from making one product or service to a second product or service, the cost of producing the second item increases.

As we can see in the scenario given above, the community of Desertville initially produced a small amount of Kiwi fruit. But as kiwis became more popular, its cultivation had to be expanded, therefore, increased costs would be incurred in the process of this expansion.

8 0
3 years ago
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