Answer:
Land = $ 61,950
Building = $ 227,150
Equipment = $ 82,600
Explanation:
Given the following fair values
Land = $ 70,800
Building = $259,600
Equipment = $ 94,400
Total cost (based on fair value) = 70,800 + 259,600 + 94,400
= $ 424,800
Cash payment given = $ 371,700
Using the proportion system to allocate the cost,
Cost of land = 
× 371700
= $ 61,950
Cost of building = 
× 371700
= $ 227,150
Cost of Equipment = 
× 371700
= $ 82,600
Therefore, the amounts to be recorded in the books for land, building and equipment are $ 61,950, $ 227,150 and $ 82,600 respectively.
Answer:
The company's degree of operating leverage is closest to $840000
Explanation:
Selling price per unit = Sales revenue / No. of bags sold
= $1560000/200000 bags = $7.8 per bag
Variable cost per unit=Total variable expenses/No. of units
= $840000/200000 units = $4.2 per bag
Company’s unit contribution margin = Selling price per unit-Variable cost per unit
= $7.8 per unit-$4.2 per unit = $3.6 per unit
Company's degree of operating leverage = Variables manufacturing expense + Variable selling and administrative expense
=$660000+$180000 = $840000
Answer:
The ROI is 2
Explanation:
For computing the ROI we have to apply the formula which is shown below:
= Return in terms of benefit ÷ investment
where,
Return is in terms of sales which equals to $20,000
And, the investment equals to
= New color cost + video launching cost
= $5,000 + $5,000
= $10,000
Now put these values to the above formula
So, the answer would be equal to
= $20,000 ÷ $10,000
= 2
Answer:
A) If he thinks that strategy will boost sales, he's cray-cray.
