Answer:
$4,800 each
Explanation:
The computation of the depreciation expense for the first two year under the straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($120,000 - $0) ÷ (25 years)
= ($120,000) ÷ (25 years)
= $4,800
In this method, the depreciation is same for all the remaining useful life
Hence, the depreciation of $4,800 is to be charged separately for each year
Answer: 2.5
Explanation:
The Turnover (Asset Utilization) is calculated by dividing the business Turnover (Sales) by it's Assets.
We have the amount of assets (Investment). Now we have to calculate the Sales.
The Net Income was 12.5% of $100,000 so solving for that would be,
= 0.125 * 100,000
= $12,500
$12,500 was the Net Income.
It was said that the Net Income was 5% of sales so using algebra we have,
12,500= 0.05x
x = 12,500/0.05
= $250,000
With sales of $250,000 we can calculate the Turnover as,
Asset Turnover = Sales / Assets( Investment)
= 250,000/100,000
= 2.5
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<span>The fact that in this market scenario the suppliers can only achieve competitive parity and not a competitive advantage means that </span><span>the coffee bean industry in Matterstein best illustrates </span>perfectly competitive structure. In this type of market structure the product is homogenous, coffee is homogenous. There are many firms and there is freedom to enter and exit the market.
Answer:
sole proprietorship
Explanation:
A sole proprietorship is a business that is owned and run by one person. The person is responsible for operations and decision-making.
There is no distinction between the business and the individual.
The instance given, the proceeds from Sung's business is used to supplement her allowance .
Answer:
Average total cost = $39
Marginal revenue = $32 per unit
Explanation:
The computation of average total cost and marginal revenue is shown below:-
Average total cost = Selling price - (Economic profit ÷ Weekly output)
= $42 - ($1,500 ÷ 500)
= $42 - 3
= $39
Marginal revenue = Marginal cost
So,
Marginal revenue = $32 per unit
Therefore for computing the average total cost and marginal revenue we simply applied the above formula.