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faltersainse [42]
2 years ago
11

On July 1, 2019, Bronson Co. purchased some equipment that initially cost $52,800. Additional costs included freight costs $300,

non-refundable taxes $6,400, and installation $500. Estimated residual value is $2,000. The company uses a straight-line rate of 10%. Bronson’s fiscal year end is June 30. Depreciation expense for the 2020 fiscal year end is
Business
1 answer:
Lostsunrise [7]2 years ago
8 0

Answer:

Depreciation Expense = $5800

Explanation:

As per the data given in the question,

Initial cost = $52,800

Freight cost = $300

Non-refundable tax = $6,400

Installation = $500

Estimated residual value = $2,000

Rate = 10%

So total cost of assets = $52,800 + $300 + $6,400 + $500

= $60,000

As per the following formula,

The straight line depreciation expense = (Cost- Residual value) × Straight line depreciation rate

=($60,000 - $2,000) × 10%

=$58,000 × 10%

=$5,800

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Each unit requires 0.25 direct labor-hours and direct laborers are paid $14.00 per hour. In addition, the variable manufacturing
pshichka [43]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Each unit requires 0.25 direct labor-hours and direct laborers are paid $14.00 per hour. In addition, the variable manufacturing overhead rate is $1.60 per direct labor-hour. The fixed manufacturing overhead is $95,000 per quarter.

Direct labor per unit= 0.25*14= $3.5

Direct labor equation= 3.5*x

x= units produced

For example:

100 units

Direct labor= 3.5*100= $350

7 0
3 years ago
In 1-2 sentences, explain why scarcity exists.
prohojiy [21]
Scarcity refers to a state of being in short supply.

Scarcity exists because distribution of resources is unequal. Majority of the people tend to get more than they need in preparation for future uses. They did not take into consideration that other people also need the items they have stocked up on. This results to unequal distribution of resources. Those who had first access to the goods have more than they need while those who came last have goods that is not enough to sustain their needs. They are the ones experiencing scarcity.

3 0
3 years ago
Which type of data do researchers collect the personal interviews?
STALIN [3.7K]

Answer:

The correct answer is "Face-to-face interviews".

Explanation:

  • Face-to-face surveys or interviews are an important way of gathering information used throughout survey methodology.
  • Throughout these interviews, research teams are collecting location information from participants across one cooperation or bonding. This method of collecting information seems to be unique or even just highly personalized.
7 0
2 years ago
The annual inventory of The Bike Shop Inc. shows the following information for mountain bikes: DATE QUANTITY COST TOTAL January
Nesterboy [21]

Answer:

$4,536

Explanation:

LIFO assumes that the units to arrive last will be sold first. Hence inventory valuation is based on the prices of earlier units.

Ending Inventory = 36 x $126 = $4,536

The value of the ending inventory using the LIFO method of inventory pricing is $4,536.

5 0
3 years ago
Charlie’s Furniture Store has been in business for several years. The firm's owners have described the store as a "high-price, h
wolverine [178]

Answer:

a. Calculate current sales and ROI for Charlie’s Furniture Store.

asset turnover formula = net sales / average assets

0.4 = net sales / $800,000

net sales = $320,000

ROI = net income / investment

net income = $320,000 x 34% = $108,800

ROI = $108,800 / $800,000 = 13.6%

b. Assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same ROI as Charlie’s currently earns.

net income = net sales x 20% (new margin)

net sales = $108,800 / 20% = $544,000

c. Suppose you presented the results of your analysis in parts a and b of this problem to Charlie, and he replied, "What are you telling me? If I reduce my prices as planned, then I have to practically double my sales volume to earn the same return?" Given the results of your analysis, what is the actual amount of increase in sales required?

sales increase = ($544,000 - $320,000) / $320,000 = 70% increase

d. Now suppose Charlie says, "You know, I'm not convinced that lowering prices is my only option in staying competitive. What if I were to increase my marketing effort? I'm thinking about kicking off a new advertising campaign after conducting more extensive market research to better identify who my target customer groups are." In general, explain to Charlie what the likely impact of a successful strategy of this nature would be on margin, turnover, and ROI.

An extensive market research and a "successful" marketing campaign are generally expensive. Even if the marketing campaign is really successful in increasing sales, costs would also increase. So the equation may or may not change, depending if the contribution margin of the additional units sold will be able to cover the expenses of a complex marketing campaign. If you spend $100 to earn $100 more, your situation hasn't changed at all. Which means that net income may or may not increase, therefore, the profit margin, ROI and asset turnover may not change.

7 0
3 years ago
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