Answer:
the payback period = 4.86 years
Explanation:
Seattle's cash flows are as following:
Year Cash flow Accumulated cash flows
0 -$150,000 -$150,000
1 $30,000 -$120,000
2 $30,000 -$90,000
3 $30,000 -$60,000
4 $30,000 -$30,000
5 $35,000 $5,000
6 $35,000 $40,000
etc.
The payback period is between year 4 and 5:
- 4 years + ($30,000 / $35,000) = 4.86 years or
- year 4 + [($30,000 / $35,000) x 365 days] = 4 years and 313 days
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
Answer:
c,d and e
Explanation:
The correct statements given in the options are as stated below:
(c)-Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.
<em>This is true because Free on Board shipping means that the seller bears no liability whatsoever once the goods are shipped.</em>
(d)-When the shipping costs are the responsibility of the buyer, then the Merchandise Inventory account is debited for the freight charges.
<em>This is true because Free on Board shipping means that the seller bears no liability whatsoever once the goods are shipped, hence the shipping costs are the buyers responsibility and will form part of the costs of the goods</em>
(e)-Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.
<em>This is true because Free on Board destination means that the seller bears all liability whatsoever till the goods are delivered, hence the revenue for the goods can only be recognized upon successful delivery</em>
Answer:
d. the rate at which a person is willing to give up bags of fries to get more burgers while staying on the same indifference curve
Explanation:
Marginal rate of substitution is defined as they way an individual nos willing to let go of one good in preference for another one while sustaining a particular level of utility or indifference curve.
An indifference curve is made up of different combinations of two products that a consumer's views as having the same value.
In the give scenario marginal rate of substitution measures the willingness of the individual to give up fries for burgers while maintaining a level of satisfaction
