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snow_lady [41]
3 years ago
15

True or false: it doesn’t matter whether you compute marginal cost using total cost or variable cost.

Business
1 answer:
Elena L [17]3 years ago
8 0
It is TRUE. Marginal cost is the amount added when there is an additional unit of product or service produced. Meanwhile, the total cost, as defined in accounting, is composed of the total fixed costs and its total variable costs. Fixed cost is not affected by the number of output a company produced. Thus it won’t affect the marginal cost. 

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Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. T
Ira Lisetskai [31]

Answer:

1.$35,000

2.$6,300,000

Explanation:

The computation of Unit sales to earn the target income and Sales amount at required profit is given below:-

a. Contribution per unit = Unit sale price - Unit variable cost

= $180 - $135

= $45

Unit sales at required profit = (Sales cost + Required cost) ÷ Contribution per unit

= ($562,500 + $1,012,500) ÷ $45

= $1,575,000 ÷ $45

= $35,000

b. Sales amount at required profit = Unit sales at required profit × Unit sale price

= $35,000 × $180

= $6,300,000

8 0
3 years ago
E16-4. On January 1.2013, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8
coldgirl [10]

Answer:

A. Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

B.Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital $5,692,500

Explanation:

(a) Preparation of the journal entry to record the original issuance of the convertible debentures

Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

($10,000,000*8/100=$800,000)

(Being issue of share on convertible debenture)

b.Preparation of the journal entry to record the exercise of the conversion option, using the book value method

Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital$5,692,500

($3,000,000+$2,700,000-$7,500)

(Being maintain the record of outstanding conversation of debenture)

Calculation for for BONDS CONVERTED

First step is to calculate the amortization for 2013

Amortization for 2013=$10,000,000/20

Amortization for 2013=$500,000

Second step is to calculate the amortization for 2014

Amortization for 2014=$10,000,000/20

Amortization for 2014=$500,000

Third step is to Calculate the premium on bonds payable

Premium on bonds payable=$10,000,000−($500,000+$500,000)

Premium on bonds payable=$9,000,000

Now let calculate the bonds converted

Bonds converted=$9,000,000×30/100

Bonds converted=$2,700,000

Calculation for COMMON STOCK

First step is to calculate the number of bonds

Number of bonds=$10,000,000/1000

Number of bonds=10,000

Second step is to calculate Price for the bond

Price for the bond=10,000×5

Price for the bond=50,000

Third step is to Calculate for Stock Split

Stock Split=50,000/2

Stock Split=25,000

Now let calculate the common stock

Common stock=25,000×30/100

Common stock=7,500

Calculation for BONDS PAYABLE

Bonds Payable=10,000,000×30/100

Bonds Payable=3,000,000

6 0
2 years ago
Read 2 more answers
_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.
Umnica [9.8K]

Answer:

(A). Customer value

Explanation:

<u>For a customer to obtain value or benefit from using a product, he or she must first make a sacrifice</u>, such as the amount of money spent or time taken to purchase the product.

Customer value refers to that <u>benefit the customer gets from using the product, compared to the sacrifice the customer makes to get it.</u>

3 0
2 years ago
Sheridan Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2160 shares of Ayayai Company (10%) fo
SCORPION-xisa [38]

Answer: debit to Stock Investments for $55,080.

Explanation:

As this is an investment in another company, it will count as an asset which means that when it increases, the account will have to be debited. It will therefore be debited for $55,080 to show the investment.

Cash will decrease by the same amount which means that it will have to be credited because assets are credited when they decrease.

Dr Stock Investments      $55,080

Cr Cash                                               $55,080

6 0
2 years ago
In studying problem solving behavior in kittens, Thorndike used which term to describe behaviors they displayed to escape an enc
Alexus [3.1K]

Answer:

The answer is Instrumental behavior. It is an action performed to reach a goal, such as to obtain a food item, achieve some other kind of reward, or remove a punishment; the behavior causes the desired outcome. Problem-solving is a subset of instrumental behavior, invoked when a direct action (such as reaching for an object) cannot achieve the goal and an indirect approach must be used (such as opening a container to get the object). To paraphrase Thorndike, a problem exists when the goal that is sought is not directly attainable by the performance of a simple act available in the animal's repertoire.

Explanation:

6 0
3 years ago
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