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4 years ago

An externality is

Business

1 answer:

pentagon [3]4 years ago

7 0

Answer:

The answer is "C", a benefit or cost experienced by someone who is not a producer or consumer of a good or service.

An externality affects to a third party that didn't choose to incur on it. It usually happens when the negative or positive externality impacts a third party that is not directly related to either the production nor the consumption process of a service or good.

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Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the c

Ipatiy [6.2K]

Answer:

Results are below.

Explanation:

First, we need to calculate the break-even point in units and sales dollars:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 354,000 / (175 - 116)

Break-even point in units= 6,000

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 354,000 / (59 / 175)

Break-even point (dollars)= $1,050,000

Now, the margin of safety and margin of safety rate:

Margin of safety= (current sales level - break-even point)

Margin of safety= (10,000*175) - 1,050,000

Margin of safety= $700,000

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 700,000 / 1,750,000

Margin of safety ratio= 0.4= 40%

5 0

3 years ago

For each of the procedures described in the table below, identify the audit procedure per formed and classification of the audi

katen-ka-za [31]

Answer:

a. Requested responses directly from customers as to amounts due.

Audit Procedure: Confirmation

Classification of Audit Procedure: Substantive procedures

b. Compared total bad debts this year with the totals for the previous two years.

Audit Procedure: Analytical procedure

Classification of Audit Procedure: Substantive procedures

c. Questioned management about likely total uncollectible accounts.

Audit Procedure: Inquiry

Classification of Audit Procedure: Substantive procedures

d. Watched the accounting clerk record the daily deposit of cash receipts.

Audit Procedure: Observation

Classification of Audit Procedure: Test of controls

e. Examined invoice to obtain evidence in support of the ending recorded balance of a customer.

Audit Procedure: Inspection of records or documents

Classification of Audit Procedure: Substantive procedures

f. Compared a sample of sales invoices to credit files to determine whether the customers were on the approved customer list.

Audit Procedure: Reperformance

Classification of Audit Procedure: Test of controls

g. Examined a sample of sales invoices to see if they were initialized by the credit manager indicating credit approval.

Audit Procedure: Inspection of records or documents

Classification of Audit Procedure: Test of controls

4 0

4 years ago

Suppose that a project has a depreciable investment of $600,000 and falls under the following accelerated depreciation schedule

Alex

Solution :

Depreciation rates 16.67% 16.67% 16.67% 16.67% 16.67% 16.67%

(books)

Depreciation $100000 $100000 $100000 $100000 $100000 $100000

(books)

Depreciation $35000 $35000 $35000 $35000 $35000 $35000

tax shield (books)

Depreciation rate 20% 32% 19.20% 11.50% 11.50% 5.80%

(tax)

Depreciation $120000 $192000 $115200 $69000 $69000 $34800

(tax)

Depreciation $42000 $67200 $40320 $24150 $24150 $12180

tax shield (tax)

6 0

3 years ago

During November, the production department of a process operations system completed and transferred to finished goods 35,000 uni

azamat

Answer:

The number of equivalent units using the weighted-average method is 185,000.

Explanation:

Determine the number of units completed and transferred out.

Number of units completed and transferred out = Units in beginning

+ Units started and completed during the month

=35,000+110,000

=145,000

Therefore, the number of units completed and transferred out is 145,000 units.

It is given that the beginning units completed is 35,000, and the units started and completed are 110,000. They are added to calculate the number of units completed and transferred out. Therefore, the number of units completed and transferred out is 145,000 units.

----

Determine the number of equivalent units using the weighted-average method.

Equivalent units = Number of units completed and transferred out + Additional units in process ×Percentagecompleted

=145,000+(40,000×100%)

=185,000

6 0

3 years ago

Calip Corporation, a merchandising company, reported the following results for October: Sales $427,000 Cost of goods sold (all v

nekit [7.7K]

Answer: $222,800

Explanation:

Given that,

Sales = $427,000

Cost of goods sold (all variable) = $173,400

Total variable selling expense = $21,200

Total fixed selling expense = $18,900

Total variable administrative expense = $9,600

Total fixed administrative expense = $36,300

Variable expenses:

= Cost of goods sold + Variable selling expense + Variable administrative expense

= $173,400 + $21,200 + $9,600

= $204,200

Contribution margin = Sales - Variable expenses

= $427,000 - $204,200

= $222,800

5 0

3 years ago