Answer:
A. True
Explanation:
Examples of situations that individually or in combination would normally lead to a lease being classified as a finance lease are:
(a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term;
(b) the lessee has the option to purchase the underlying asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception date, that the option will be exercised;
(c) the lease term is for the major part of the economic life of the underlying asset even if title is not transferred;
(d) at the inception date, the present value of the lease payments amounts to at least substantially all of the fair value of the underlying asset; and
(e) the underlying asset is of such a specialised nature that only the lessee can use it without major modifications.
Since at the time of lease the net present value of the payments is 88% of the actual market price and the useful life of the asset was 70% at the end of the lease term and also the title of asset shall not be transferred to lessee at the end of lease term, therefore the lease shall not be classify as finance lease and it shall be classified as operating lease so the answer is A. True
In economics, marginal cost is the additional expenditure or cost you incur when you buy another more quantity of the product. When Allison bought the <span>1minus−color application, she spent a total of $130.
$35 + $95 = $130
When she upgraded to 3minus-color application, her cost now increased to
$175 + $40 = $215
Now, as mentioned, marginal cost is the additional cost incurred when buying one more quantity of the same product. Therefore, marginal cost = </span>Δcost/Δquantity. Thus,
Marginal Cost = ($215-$130)/(3-1)
Marginal Cost = $42.5
The marginal cost is $42.5 per color application.
Which of the following types of coverage would pay for damage to your automobile in an accident for which you were at fault? B. Collision
Joe Johnson needs surgery for appendicitis. which part of his basic insurance coverage should help pay this surgery? B. Surgical Expense Insurance
Answer:
In the short run, these workers are variable inputs, and the ovens are fixed inputs.
Explanation:
Giving the following information:
Manuel's kitchen cannot fit more than three ovens, Manuel cannot change the number of ovens he uses in his production of pizzas in the short run. However, Manuel's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Manuel lets them know how many workers he needs for each day of the week.
In the short run, these workers are variable inputs, and the ovens are fixed inputs.
