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Whitepunk [10]
3 years ago
5

Cole is refinishing an antique china cabinet and has already spent $180 on the restoration. He expects to be able to sell the ca

binet for $360. Cole discovers that he needs to do an additional $200 worth of work to make the cabinet worth $360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for $100. What should Cole do
Business
1 answer:
Lunna [17]3 years ago
5 0

Answer:

Cole should complete the additional work and sell the cabinet for $360.

Explanation:

If Cole sells the cabinet now for $100 and taken into account that he has already spent $180, this means that:

$100-$180= -$80

He would be losing $80.

On the other side, if he completes the additional work, he would sell the cabinet $360. However, his expenses would be:

$180+$200= $380

Now, you have to subtract the costs from the selling price:

$360-$380= -$20

This means that he would lose $20.

According to that, Cole should complete the additional work because he would be lose less money.

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A bank will not require security in the form of collateral as a guarantee the loan will be repaid.
Flauer [41]
The answer is so true
6 0
3 years ago
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15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's
vodomira [7]

Answer:

$104,000

Explanation:

Note: <em>The full question is attached as picture below</em>

Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities

Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000

Fair value of net assets = $460,000

Purchase consideration paid = 12,000*$47

Purchase consideration paid = $564,000

Goodwill recognized = Purchase consideration - Fair value of net assets

Goodwill recognized = $564,000 - $460,000

Goodwill recognized = $104,000

7 0
2 years ago
Street Company's fixed expenses total $150,000, its contribution margin ratio is 40% and its selling price per unit is $11.25. B
pickupchik [31]

Answer:

Break-even point in units= 33,333.33 units

Explanation:

<em>The break-even point (BEP) is the quantity of each product to be sold such that the business makes no profit or loss. </em>

The beak-even point can be determined as follows:  

The Break-even point in sales = Total general fixed cost / Contribution per unit margin

Contribution per unit = Contribution margin ration ×  selling price

                                   = 40%×11.25 =4.5

The break-even point (in unit) =  150,000/ 4.5 =33,333.33

break-even point in units= 33,333.33 units

3 0
3 years ago
assume george's sandwich included the same ingredients as a sanwhich that you can buy at your local deli explain why georgs's sa
Anika [276]

Answer: Economies of Scale

Explanation:

Economies of scale refers to the tendency of costs to reduce per unit as the number of units produced increases. This is because the producer is able to share the costs amongst all the units produced.

George was getting those ingredients to make a single burger so the produce he used were small in quantity and cost him more. The companies that make sandwiches in large numbers buy and produce the ingredients in bulk which reduces their prices.

For example, George went to Minneapolis to get salt for one burger, those companies would go and get salt for 10,000 burgers at the same time which would reduce the cost by dividing it across the 10,000 burgers.

This cost saving from economies of scale enables the local deli to sell products at a cheaper rate than if we had to make them ourselves.

6 0
3 years ago
In a process cost system, the application of factory overhead usually is recorded as an increase in?
vredina [299]

In a process cost system, the application of factory overhead usually is recorded as an increase in work in process inventory control.

<h3>What is the process costing system?</h3>
  • When a large number of similar products are manufactured, a process costing system accumulates costs.
  • A process costing method is used by any large-scale firm who produces huge quantities of identical commodities.
  • A petroleum refinery is a perfect example of a process costing environment since it is hard to trace the cost of a specific unit of oil as it passes through the refinery.

learn more about costing system refer:

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5 0
2 years ago
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