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Rama09 [41]
3 years ago
10

Question 17

Business
1 answer:
katovenus [111]3 years ago
3 0

Answer:

B. List Operational Costs

Explanation:

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Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. The firm's fixed costs, F, are $2.5 milli
AVprozaik [17]

Answer:

Schweser Satellites Inc.

The incremental profit is:

= $845,000

Explanation:

a) Data and Calculations:

Selling price of Satellite Earth Station = $95,000 each

Total sales revenue = $4,750,000 ($95,000 * 50)

Fixed costs, F = $2.5 million

Annual production and sales units = 50 units

Total profits = $500,000

Total contribution = $3 million ($2.5 m + $500,000)

Variable costs = $1,750,000 ($4,750,000 - $3,00,000)

Variable cost per unit = $35,000 ($1,750,000/50)

Assets = $4 million

Equity = $4 million

Additional assets = 4.5 million

Additional fixed operating costs = $380,000

New assets = 8.5 million

Fixed operating costs = $2.88 million

Variable cost reduction per unit = $12,000

New variable cost per unit = $23,000 ($35,000 - $12,000)

Production and sales units = 65 (50 + 15)

New selling price per unit = $88,000

Cost of equity = 16%

Tax rate = 0%

Profit under new arrangements:

Contribution per unit = $65,000 ($88,000 - $23,000)

Total contribution margin = $4,225,000 ($65,000 * 65)

Fixed operating costs =       $2,880,000

Net operating profit              $1,345,000

Incremental profit = $845,000 ($1,345,000 - $500,000)

4 0
3 years ago
Which of the following could most likely have prevented the accounting scandals of the early 2000s and the global financial cris
sveta [45]

Answer:

C. Practicing effective corporate governance

Explanation:

Accounting scandals refer to the scandals of the business that occurs from the change in the financial statements that to be done in a deliberate manner also the disclosing information is misled. It involves an organization as a whole.

In order to prevent the accounting scandals and the global financial crisis it could practicing corporate governance in an effective manner

Hence, the correct option is C.

7 0
3 years ago
he table gives the demand and supply schedules for boat rides. If the demand of boat rides increases by 40 rides a​ day, the pri
polet [3.4K]

Answer:The price will also increase

Explanation:According to the law of demand and supply, demand has a positive relationship with price, which means the higher the demand, the higher the price of the same commodity

6 0
3 years ago
Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages t
irakobra [83]

Answer:

$1000

Explanation:

Given the policy coverage = $30000

The amount of deductible = $1000

Total damage of the car when the accident occurred = $6200

Below is the calculation to find the amount that Frank has to pay:

The amount payable by Frank out of pocket = Deductible amount

The amount payable by Frank out of pocket = $1000

4 0
3 years ago
Ordinary repairs meet all of the following criteria except: Multiple Choice Are expenditures to keep an asset in good operating
spin [16.1K]

Answer:

The correct answer is letter "B": Extend the useful life of an asset beyond its original estimate by several years.

Explanation:

Ordinary repairs refer to routine maintenance that equipment and machinery need to work over its estimated useful life. <em>It does not aim to extend the life of the equipment but helps meeting the estimated time a company plans to use those assets.</em> In accounting terms, ordinary repairs demand to record a debit to an expense account and a credit to a cash account.

7 0
3 years ago
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