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2 years ago

What is the different between economic profit and accounting profit

1 answer:

7 0

Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs, accounting profit consists of revenue minus explicit costs.

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Callaway Golf Co. leases telecommunication equipment from Photon Company. Assume the following data for equipment lease form Pho

inessss [21]

Answer:

This lease is regarded and classified as Capital lease.

Explanation:

This lease is regarded and classified as Capital lease.

Here, Callaway Golf Co. is the body financing the leased asset but the right ownership is with Photon Company.

Now; the present value of future payment is calculated as:

Present value of future payment =[PVA 6%,5 × Annual payment ]+[PVF 6%,5 × Residual value]

=[4.46511 × 31000] +[0.74726 × 15500]

= 138418.27+ 11582.53

= 150000

However the present value of minimum lease payment is equal or more than 90% fair market value ,as such we therefore conclude that this lease is a capital lease.

3 0

3 years ago

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production fa

Anna007 [38]

Answer:

Given,

Annual demand, D = 12500,

Setting up cost, S = $ 49,

Production rate per year, P = production facility × capability of production = 300 × 105 = 31500,

Holding cost per year, H = $ 0.15,

Hence,

(i) Optimal size of the production run,

$Q = \sqrt{\frac{2DS}{H(1-\frac{D}{P})}}=\sqrt{\frac{2\times 12500\times 49}{0.15(1-\frac{12500}{31500})}}=3679.60238126\approx 3680$

(ii) Average holding cost per year,

$=\frac{QH}{2}(1-\frac{D}{P})$

$=\frac{3680\times 0.15}{2}(1-\frac{12500}{31500})$

$=166.476190476$

$\approx \$ 166.48$

(iii) Average setup cost per year,

$=\frac{D}{Q}\times S$

$=\frac{12500}{3680}\times 49$

$=166.44021739$

$\approx \$ 166.44$

(iv) Total cost per year = average setup cost per year + average holding cost per year + cost to purchase 12500 lights

= 166.44 + 166.48 + 12500(0.95)

= $ 12207.92

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2 years ago

What business structure automatically reinvests profits in the corporation?

zhuklara [117]

Answer:

A sole proprietorship

Explanation:

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3 years ago

Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:

lidiya [134]

Answer:

Fixed costs= $73,760

Variable cost= $159,430

Explanation:

First, let's separate the factory overhead costs:

Power and light 40,450

Factory insurance 23,560

Production supervisor wages 118,980

Production control wages 30,930

Factory depreciation 19,270

Now, the fixed and variable costs:

Fixed costs= Factory insurance 23,560 + Production control wages 30,930 + Factory depreciation 19,270

Fixed costs= $73,760

Variable cost= Power and light 40,450 + Production supervisor wages 118,980

Variable cost= $159,430

6 0

2 years ago

Suppose you are an operations manager for a plant that manufactures batteries. Give an example of how you could use descriptive

Tatiana [17]

Please find full question attached

Answer:

Inferential statistics

Descriptive statistics

inferential statistics

descriptive statistics

Descriptive statistics

Inferential statistics

Explanation:

Descriptive statistics describes data and gives us a picture of what the data summary looks like using such things as mean and central tendency measures. Inferential statistics on the other hand aims to make predictions using the data based on data analysis such as collecting sample from population and constructing hypotheses to estimate outcomes for the general population. Example in the question, the first is inferential statistics as we make generalized predictions on batteries using data samples from the population of batteries of a particular type.

7 0

3 years ago