Answer:
Variable cost per copy =$ 0.03
Explanation:
The high and low techniques helps to analyse a cost into its variable and fixed cost component.
The formula is given below:\
Variable cost per copy = (cost at high act. - cost at low act)/(high act - low act)
Fixed cost = cost at high activity - (Vc/copy × high act)
VC per copy = ( 195 - 162)/(3500-2400) copies
=$ 0.03 per copy
Total fixed cost = 195 - (0.03× 3500)
= 195 - 105
=$90
Answer:
d. An increase in accounts receivable.
Explanation:
Answer:
Option (b) $74,100
Explanation:
Data provided in the question:
Sales revenue = $184,000
Ending inventory = $11,600
Beginning inventory = $17,200
Purchases = $60,400
Purchase discounts = $3,000
Purchase returns and allowances = $1,100
Freight-in = $600
Freight-out = $900
Now,
Cost of goods available for sale
= Beginning inventory + Purchases + Freight-in - Purchases discounts - Purchase returns and allowances
= $17,200 + $60,400 + $600 - $3,000 - $1,100
= $74,100
Hence,
Option (b) $74,100
Answer:
Building C
Explanation:
Building A: Purchase for a cash price of $620,000, useful life 27 years.
Building B: Lease for 27 years with annual lease payments of $71,170 being made at the beginning of the year.
Building C: Purchase for $657,500 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,200. Rental payments will be received at the end of each year.
11% cost of funds
we must determine the present value of each option:
- Building A's present value = $620,000
- Building B's present value = $71,170 x 9.48806 (PV annuity due factor, 11%, 27 periods) = $375,265.23
- Building C's present value = $657,500 - [$6,200 x 8.5478 (PV ordinary annuity factor, 11%, 27 periods) = $657,500 - $52,996.36 = <u>$604,503.64 (LOWEST PV)</u>
Answer:
Since Marco's itemized deductions are lower than the standard deduction, he should not itemize. His taxable income = AGI - standard deduction = $18,000 - $12,400 = $5,600.
Marco's total income tax liability = $5,600 x 10% = $560
Taxpayers should not itemize when the deductions are lower than the standard deduction.
