Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A machine costing $251,800 was purchased May 1. The machine should be obsolete after three years and, therefore, no longer useful to the company. The estimated salvage value is $3,400.
A) Straight-line:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (251,800 - 3,400)/3= $82,800
B) Double declining balance:
Annual depreciation= 2*[(original cost - residual value)/estimated life (years)]
Year 1= (248,400/3)*2= 165,600
Year 2= 55,200
Year 3= 18,400
Answer:
The correct word for the blank space is: Market.
Explanation:
Market knowledge refers to the collection of information about the business and all its resources being offered to the market. It does not only help entrepreneurs to have a better understanding of what the firm is and what it can do but also allows them to improve the decisions they take to direct the business process towards the organizational goal.
Answer:
$21.42
Explanation:
The computation of fixed component in the predetermined overhead rate is shown below:-
Fixed component in the predetermined overhead rate = Fixed Overhead ÷ Machine Hours
= $87,822 ÷ 4,100
= $21.42
Therefore for computing the fixed component in the predetermined overhead rate we simply divide the fixed overhead by machine hours.
And all the other information i.e given is not relevant. Hence, ignored it
Answer:
$93,750
Explanation:
Contribution margin=15-(5+3+3)=4
Fixed Costs=$60,000+$40,000=$100,000
Break even point in units=$100,000/4=25,000
Break even point in $=25,000/(4/15)=$93,750
