Answer
The store is likely to experience the following: the total fixed cost will remain the same, while the unit fixed costs will reduce with increase in sales. The total variable costs will reduce with increase in sales, while the unit variable cost will remain constant despite an increase in sales volume.
Explanation
The total variable costs are those costs that change with rise or fall in output or quantity produced. The total variable cost will increase when the amount of products produced increases. For example, labor, the more the units of the products are produced and sold more labor will be required to produce that effect and this will increase the store’s cost of labor. The total variable costs will rise proportionally with increase in sales volume because it costs more to increase the output.
Answer: The correct answer is " b. $0 and $450,000. ".
Explanation: First we must calculate the amount for which we change the warehouse ($ 350,000 + $ 150,000) = $ 500,000.
The adjusted base of the warehouse was $ 600,000.
Therefore there is a loss of $ 100,000, which is not recognized because it is not realized at that time in the face of an exchange of such characteristics, the base of the office building must be calculated taking into account the postponed loss:
Fair market value ($ 350,000) + Postponed loss ($ 100,000) = $ 450,000.
Explanation:
The preparation of the year-end income statement for Fighting Okra Cooking Services is presented below:
Fighting Okra Cooking Services
Income statement
As on December 31
Revenue
Service revenue $78,500
Total revenues $78,500 (A)
Less: Expenses
Postage expense $1,500
Legal fees expense $2,600
Rent expense $21,000
Salaries expense $22,000
Supplies expense $20,000
Total expenses $67,100 (B)
Net income $11,400 (A- B)
Answer:
Because of trade, country may consume outside its institutional production possibilities frontier.
Explanation:
Production possibility frontier plays a crucial role in economics. It is the point at which a country’s economy is most efficiently producing its various goods and services and, therefore, allocating its resources in the best way possible.
