Smith Concrete Company owns enough ready-mix trucks to deliver up to 100,000 cubic yards of concrete per year (considering each
truck's capacity, weather, and distance to each job). Total truck depreciation is $200,000 per year. Raw materials (cement, gravel, and so on) cost about $25 per cubic yard of cement
Depreciation of truck if it delivers 30,000 cubic yard of concrete in one year 200,000 / 100,000 * 30,000 = $60,000
Cost of raw material for 2,000 cubic yard (2,000 * $25 )= $50,000
Explanation:
Depreciation is allocation of an assets cost over its useful life. Depreciation expense is considered as a tax shield. The larger the depreciation expense, the lower will be the taxable income. Smith Concrete company uses concrete material as a base for truck depreciation. Truck depreciation cost is fixed cost. The raw material cost of concrete is variable.
Answer:Highlight celebrities who use Sumac e-readers.
Explanation:
According to the question, due to tough competition in market regarding the e-reading product , Sumac industries wants that they can have superior position in e-reader market than other e-reader business organizations.Thus,they want a secure position for their company.
A good strategy for maintaining their position can be done through putting spot-light on the celebrity users of Sumac e-reader.This will be highlighted among celebrity fans or followers and general customers. It will promote or inspire people to purchase Sumac e-reader more as celebrities are using their product.
