Answer:
Explanation:
We don't have enough information to calculate the exact effect on the net operating income. For example, we will need the selling price and unitary variable costs. But we can calculate the effect on the fixed costs and selling variable costs.
Savings in fixed costs= $22,000
Increase in total variable costs= 13* 2400 units= $31,200
To decide whether it is convenient or not we need the information previously stated.
Answer:
Licensing
Explanation:
Licensing is a business arrangement in which an company gives permission or right to another company to produce its product by issuing a license for an exchange for a fee called "royalty".
The firm who permit and issues the licence to another firm is called LICENSOR.
The firm who receives the license is called the LICENSEE.
LyTV is the LICENSOR.
TipTV is the LICENSEE.
TipTV will pay a royalty to LyTV for permitting it to use its channels.
LyTV is giving permission to TipTV to use its channels and television programs in exchange for a royalty.
Answer:
B) 574,000
Explanation:
Equipment book of Paar value on december 31/14 of $294,000.-
Add Kimmels equipment book value on december 31/14 of $190,00
Add original acquisition-date allocation to Kimmel´s equipment of ($400,000 - $272,000) = $128,000
Less Amortization of alloction ($128,000 / 10 years for 3 years) = (38,400)
Eqcuals consolidated equipment of $574,000