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zaharov [31]
3 years ago
11

Sterling Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in

the spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 200 boats at a total cost of $720,000. The low point in production occurred in January when it produced 100 boats at a total cost of $450,000. Required Use the high-low method to estimate the amount of fixed cost incurred each month by Sterling Boat Company. Determine the total estimated cost if 150 boats are made.
Business
1 answer:
nataly862011 [7]3 years ago
4 0

Answer:

$585,000

Explanation:

Using high-low method

Variable cost = Total cost (high activity) - Total cost (low activity) / Highest activity unit - Lowest activity unit

Variable cost = 720,000 - 450,000 / 100

Variable cost = 270,000 / 100

Variable cost = 270

Variable cost = Cost - Fixed cost

Now 720,000 = (200) * 2,700 - Fixed cost

- FIxed cost = 540,000 - 720,000

- Fixed cost = -180,000

Fixed cost = 180,000

Now Cost for 150 = 2,700 (150) + 180,000

= 405,000 + 180,000

= $585,000

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Answer:

The correct answer is letter "C": competitive barrier.

Explanation:

Competitive barriers represent obstacles for a business to start operations based on what other companies are already providing to the market. The settled companies -competitors- tend to have a preference and market share obtained through years of operations which is a threat for a new company that is looking for attracting consumers.

6 0
3 years ago
For each of the following items before adjustment, indicate the type of adjusting entry (prepaid expense, unearned revenue, accr
igor_vitrenko [27]

Answer:

See explanation

Explanation:

(a) Assets are understated - If we do not adjust accrued revenue, the assets are understated. For example - if we do not add any outstanding rent revenue, the assets will become understated.

(b) Liabilities are overstated - If we do not adjust unearned revenue, the liabilities are overstated. For example - if we do not deduct any expired unearned revenue, the liabilities will become overstated.

(c) Liabilities are understated - If we do not adjust accrued expense, the liabilities are understated. For example - if we do not add any outstanding rent expense, the liabilities will become understated.

(d) Expenses are understated - If we do not adjust accrued expense and prepaid expense, the expenses are understated. For example - if we do not add any outstanding rent expense and expired prepaid expenses, the expenses will become understated.

(e) Assets are overstated - If we do not adjust prepaid expense, the assets are overstated. For example - if we do not deduct any expired prepaid insurance, the assets will become overstated.

(f) Revenue is understated - If we do not adjust accrued revenue and unearned revenue, the revenue is understated. For example - if we do not add any outstanding rent revenue and expired unearned revenue, the revenue will become understated.

3 0
3 years ago
"In order to recommend a variable annuity to a customer, the representative should have a reasonable basis to believe that the c
Mrrafil [7]

Answer:

D. I, II, III

Explanation:

For suggesting a variable annuity to a customer, the representative has the reasonable basis to trust the customer that gained from growth of the deferred tax for the separate account, the trust of receiving the income for life and the living or death benefit allowed in the contract

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3 0
4 years ago
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blagie [28]

Answer: I found the complete question on Google:

By 2017, McDonald's had stopped selling Chicken McNuggets and other products made from chickens fed antibiotics. The change increased McDonald's costs, but an article in the Wall Street Journal noted that "...McDonald's ability to raise its prices is limited because of stiff competition."Source: David Kesmodel, Jacob Bunge, and Annie Gasparro, "McDonald's to Curb Antibiotics in Chicken," Wall Street Journal, March 4, 2015. Does this "stiff competition" mean that the demand curve for McDonald's Chicken McNuggets is horizontal? Briefly explain.

And the correct answer is: "B. ​No, the demand curve is not horizontal because Chicken McNuggets are not identical to other chicken products.".

8 0
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Pavel [41]

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6 0
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