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3 years ago

If output equals a*(5k + 2l), what is output if a equals 2,000, capital equals 10, and labor equals 100?

1 answer:

5 0

We know that: a = 2,000, c = 10, l = 100
The formula is: a * ( 5 c + 2l )
So when we charge the values:
2,000 * ( 5 * 10 + 2 * 100 ) =
= 2,000 * ( 50 + 200 ) =
= 2,000 * 250 = 500,000
Answer: The output is 500,000.

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Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only on

Vika [28.1K]

Answer:

CANE COMPANY

a. total amount of traceable fixed manufacturing overhead

Alpha = $19*105,000 = $1,995,000

Beta = $21*105,000 = $2,205,000

b. Company's total amount of common fixed expenses =

Aplha = $18*105,000 = $1,890,000

Beta = $13* 105,000 = $1,365,000

Total = $3,255,000

c. Increase in profit as result of accepting the offer = additional contribution * additional unit sold

= $14*13,000

= $182,000

additional contribution =$92 - (30 + 23 + 10 + 15)

d. Decrease in profit = loss of contribution * unit sold

= -13 *4000

= ($52,000)

loss of contribution = 42 -( 18+ 16 +8+13)

Explanation:

3 0

3 years ago

On January 15, 2019, Dillon purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the r

lutik1710 [3]

Answer:

$175,000

Explanation:

Depletion per Unit =$3500000 / 500000 = $7 per unit

25,000 units were sold during the year.

There are two ways of figuring depletion on mineral property.

1. Cost Depletion

2. Percentage Depletion

Generally, we must use the method that gives you the larger deduction.

Calculation of Cost Depletion:

Cost Depletion = Units Sold * Depletion Rate = 25,000 units * $7 per unit = 175,000

Calculation of Percentage Depletion:

Percentage Depletion = Gross Income from Property During the Year * Depletion Rate = 800,000 * 22% = 176,000

Percentage Depletion cannot be more than 50% of net taxable income from the property.

Percentage Limit = (Sales - Expenses ) * 50% = (800,000 - 500,000) * 50% = 300000*50% = 150,000

Thus Percentage Depletion is limited to $150,000

Thus, the deduction is $175,000 (Higher to Cost or Percentage Depletion)

7 0

3 years ago

Silvia Company acquires a 30% interest in Small Company. The fair value of Small's inventory exceeds its carrying value by $100,

beks73 [17]

Answer:

The revenue that the investment in the company would increase by $100,000.

Explanation:

Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:

Cost
Net Realizable Value (Fair Value less Cost to Sell)

This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.

The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.

7 0

2 years ago

Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost

Llana [10]

Answer:

$89,350

Explanation:

Calculation to determine the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet

First step is to calculate the Balance after first payment

Initial lease liability $130,000

Less: First payment $23,000

Balance after first payment $107,000

Second step is to calculate the Interest expense for June 30,2021

Interest expense for June 30,2021= $107,000*5%

Interest expense for June 30,2021=$5,350

Third step is to calculate the Principal payment for June 30,2021

Principal payment for June 30,2021=$23,000-$5,350

Principal payment for June 30,2021=$17,650

Now let calculate the Outstanding balance on June

Balance after first payment. $107,000

Less: Principal payment for June $17,650

Outstanding balance on June $89,350

Therefore the outstanding balance of the lease liability in Lone Star's December 31, 2018, balance sheet is $89,350

8 0

3 years ago

Computing Income Taxes

Anastaziya [24]

Answer:

The corporation's tax liability is $ 228,820.

Explanation:

To calculate tax liability we first have to find net profit. Detail calculation is given below.

Net profit Calculation

Sales $ 3,130,000

cost of goods sold and the operating expenses ($ 2,080,000)

Interest expense ( $ 377,000)

Net profit $ 673,000

Tax liability Calculation

Income fall under Tax bracket of 34% ($75,001 to $10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.

Tax liabilty = 673,000 * 34% = $ 228,820

5 0

2 years ago