Many new business will run at a loss in the beginning? A.TRUE <br> B. FALSE

A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by upper c equals 0.

Fantom [35]

Answer:

The cost per month is increasing at a rate $365.

Explanation:

Differentiation Formula

$\frac{d}{dx}(x^n)= nx^{n-1}$
$\frac{d}{dx}(a)=0$ [ where a is a constant]
$\frac{d}{dx}(ax^n)=a \frac{d}{dx}(x^n)= anx^{n-1}$

Given that,

A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by

$c=0.2x^2+10,000$ .

Again given that,

the rate of changing production is 13 unit per month

i.e $\frac{dx}{dt}=13$

To find the cost per month, we need to find out the value $\frac{dc}{dt}$ when production is changing at the rate 13 units per month and the production is 70 units.

$c=0.2x^2+10,000$

Differentiating with respect to t

$\frac{d}{dt}(c)=\frac{d}{dt}(0.2x^2)+\frac{d}{dx}(10,000)$

$\Rightarrow \frac{dc}{dt}=0.2\frac{d}{dt}(x^2)+\frac{d}{dx}(10,000)$

$\Rightarrow \frac{dc}{dt}=0.2\times 2x^{2-1}\frac{dx}{dt}+0$

$\Rightarrow \frac{dc}{dt}=0.4x\frac{dx}{dt}$

Plugging $\frac{dx}{dt}=13$

$\Rightarrow \frac{dc}{dt}=0.4x\times 13$

$\Rightarrow \frac{dc}{dt}=5.2x$

$\frac{dc}{dt}|_{x=70}=5.2\times 70$ [ plugging x=70]

=364

[ The unit of c is not given. Assume that the unit of c is dollar.]

The cost per month is increasing at a rate $365.

4 0

3 years ago

Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the

arsen [322]

Answer:

2nd January

Dr Machinery $178,000

Cr Cash $178,000

( to record the purchase of used machine)

3rd January

Dr Machinery $4,000

Cr Cash $4,000

(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).

Explanation:

- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.

- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.

6 0

3 years ago

All of the following are true statements about the economy of the middle colonies, EXCEPT:

gayaneshka [121]

The right answer for the question that is being asked and shown above is that: "d. Disease killed more people in the middle colonies because of its cooler climate, resulting in a labor shortage." All of the following are true statements about the economy of the middle colonies, EXCEPT Disease killed more people in the middle colonies because of its cooler climate, resulting in a labor shortage.<span>
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8 0

3 years ago

Cash to Monthly Cash Expenses Ratio Capstone Turbine Corporation produces and sells turbine generators for such applications as

Andrej [43]

Answer:

a) $1,918.17

b) 16.8 months

C) Yes, Capstone Turbine will remain in business.

Explanation:

a) To find the monthly cash expenses, we have:

Monthly cash expenses = negative cash flow from operations / 12

= 23018 / 12

= $1,918.17

b) To find the ratio of cash to monthly cash expenses, we have:

Ratio of cash to monthly cash expenses = Year end cash / monthly cash expenses

= $32,221 / $1,918.17

= 16.797

≈ 16.8 months

c) Yes, Capstone Turbine will remain in business because the calculated ratio above shows that they have cash to continue operations for approximately 16.8 months.

6 0

3 years ago

Murphy's, Inc., has 85,000 shares of stock outstanding with a par value of $1 per share. The market value is $12 per share. The

nexus9112 [7]

Answer:

The correct answer is $177,955.

Explanation:

According to the scenario, the computation of the given data are as follows:

Capital in excess of par account = $74,500

Common stock = $85,000

Retained earning = $141,500

So, we can calculate the balance in the capital in excess of par account be after the dividend by using following formula:

Capital after Dividend = Balance sheet amount of Capital + ( Issued additional share × Capital in excess of par per share )

Where,

Issued additional share = 11% × $85,500 = 9,405

And Capital in excess of par per share = $12 - $1 = $11

By putting the value, we get

Capital after dividend = $74,500 + ( 9,405 × $11)

= $74,500 + $103,455

= $177,955

8 0

3 years ago

Many new business will run at a loss in the beginning? A.TRUE B. FALSE