Answer:
Total actual utilisation = 1,710 unit
Explanation:
Given:
Design capacity = 1,900 units
Effective capacity = 90%
Actual output = 1,500 units
Total utilisation = ?
Computation of Actual unit utilise:
Total actual utilisation = Design capacity x Effective capacity
Total actual utilisation = 1,900 x 90%
Total actual utilisation = 1,900 x 0.9
Total actual utilisation = 1,710 unit
Answer:
$35,000
Explanation:
Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).
Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000
Go to your calculator and tap root 40 it will give you answers but in decimal forms
Answer:
A. the company's gross margin is $100,000, while its contribution margin is $60,000.
Explanation:
Under the gross margin, the net income would be
= Sales - cost of goods sold
= $300,000 - $200,000
= $100,000
Under the contribution margin, the net income would be
= Sales - cost of goods sold - variable operating expenses
= $300,000 - $200,000 - $40,000
= $60,000
Under the gross margin, no operating expenses would be considered whereas for contribution margin, only the variable operating expenses is considered
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