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)
Answer:
Products Selling price Unit variable cost
$ $
Junior 50 15
Adult 75 25
Expert <u>110 </u> <u> 60</u>
Total <u> 235 </u> <u> 100</u>
The sales price per composite unit = $235
The contribution margin per composite unit
= Composite selling price - Composite unit variable cost
= $235 - $100
= $135
Break-even point in units
= <u>Fixed cost</u>
Contribution per unit
= <u>$114,750</u>
$135
= 850 units
Break-even point in dollars
= Break-even point in units x Composite selling price
= 850 units x $235
= $199,750
Income Statement
$
Total contribution ($135 x 850 units) 114,750
Less: Fixed cost <u>114,750</u>
Net profit <u> 0</u>
Explanation:
Sales price per composite unit is the aggregate of all the selling prices.
Contribution margin per composite unit equals composite selling price minus composite unit variable cost.
Break-even point in units is fixed cost divided per composite contribution margin per unit.
Break-even point in dollars equal break-even point in units multiplied by selling price.
Income statement is prepared by deducting the total fixed cost from the total contribution.
When you get hired for a well-paying job, you will most likely view older used cars as<u> inferior goods.</u>
<h3><u /></h3><h3><u>What are inferior goods?</u></h3>
As consumer income rises, customer demand declines for a class of inferior goods. Low-cost alternatives to "normal products," or necessities like food and household supplies, are frequently found in inferior goods. For instance, when someone's wage is cut, they might buy cheaper, poorer things than they would otherwise. When their earnings increases again, they're more likely to buy regular things rather than cheap ones.
The word "inferior" refers to the product's price and perceived worth rather than its quality. The quality may occasionally be inferior to an equivalent standard good, but it may also occasionally be the same. In reality, there are occasions when the only distinctions between regular goods and equal substandard goods are the packaging and price of the goods.
Learn more about inferior goods with the help of the given link:
brainly.com/question/13377225?referrer=searchResults
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Answer:
- Single asset = Coefficient of Variation
- Portfolio = Beta
Explanation:
When dealing with standalone risk, coefficient of variation is best because it shows the amount by which the asset's returns might deviate from the average returns of the market.
As for portfolio assets that are well diversified, the best measure would be beta because diversified portfolios deal with systematic risk and beta shows the movement of the portfolio in relation to the market and so will show that systematic risk.
