Answer:
a. $17,978
b. $300,000
Explanation:
Conditions
- The cotton country of lancaster, california has owned his home for ten years
- purchased it for $178,000, cotton bought a $160,000 homeowner's insurance policy
- the replacement cost of the home is now $300,000
a. hence,
the proportion of the house insured = 
%
= 89.89%
Percentage amount covered by the policy
= proportion of the house insured = 89.89%
Amount covered by the policy in dollars
= $20,000 × 89.89%
= $17,978
b
Amount of insurance on the home that cotton should now carry to be fully reimbursed for a fire loss = current value of the home
= $ 300,000
Answer:
Chamber of Commerce is the correct answer.
Explanation:
Answer:
An opportunity cost
Explanation:
The opportunity cost is the cost where the loss occurs from the benefit could have been enjoyed in the case when the best alternative choice was selected Since in the question it is mentioned that the company operating at a capacity and than lose revenue from the regular customers so it is an opportunity cost
Answer:
The total product cost per unit under absorption costing is $15.38 per unit
Explanation:
Absorption costing : Under absorption costing, all costs which is assigned in the production is recorded in this costing method. It includes direct labor cost, direct material cost, variable overhead cost, fixed overhead cost, etc.
The computation of total product cost per unit is shown below:
= Direct material per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit
where,
Direct material and direct labor per unit is given but variable overhead per unit and fixed overhead per unit is not given so first we have to calculate these two cost per unit. The calculation is shown below:
Variable overhead per unit = Total variable overhead cost ÷ expected units to be produced
= $41,400 ÷ 18,000
= $2.3 per unit
Now for Fixed overhead per unit = Total fixed overhead cost ÷ expected units to be produced
= $150,000 ÷ 18,000
=$8.33 per unit
So, total product cost per unit = Direct material per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit
= $1.25 + $3.5 + $2.3 + $8.33
= $15.38 per unit
Hence, the total product cost per unit under absorption costing is $15.38 per unit
