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Setler79 [48]
3 years ago
6

A construction company entered into a fixed-price contract to build an office building for $28 million. Construction costs incur

red during the first year were $8 million and estimated costs to complete at the end of the year were $12 million.The building was completed during the second year. Construction costs incurred during the second year were $13 million.How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes revenue upon contract completion
Business
1 answer:
Radda [10]3 years ago
4 0

Answer:

$3.2 million

Explanation:

The revenue and gross profit or loss which the company identify in the first and second year if it recognizes revenue upon contract completion is calculated below.

Total costs = Incurred costs + estimated costs to complete = $8 million + $12 million = $20 million

Revenue to recognize = $8m/$20m*$28m = $11.2 million

Gross Profit = Revenue recognized less costs incurred

= $11.2m - $8m = $3.2 million

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Answer:

c. $8

Explanation:

Calculation to determine the selling price

First step is to calculate the Markup percent

Markup percent= (90,000 + 150,000) / (30,000 x 15)

Markup percent = .533

Now let calculate the selling price

Selling price=533 x $15 per unit

Selling price= $8

Therefore the Selling price will be $8

7 0
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What two features of a bond are the principal determinants of its interest rate? A. Investment percentages and maturity delegati
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A. Investment percentages and maturity delegations
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Holiday Laboratories Laboratories purchased a high speed industrial centrifuge at a cost of $420,000. Shipping costs totaled $15
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Answer:

$455,000

Explanation:

Given that,

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=  $420,000 + $15,000 + $8,000 + $3,000 + $6,000 + $3,000

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4 0
3 years ago
Select the examples that best demonstrate likely tasks for Revenue and Taxation workers. Check all that apply.
ArbitrLikvidat [17]

Awnser: A, B, and E.

3 0
2 years ago
The opportunity cost of an action: can be determined by considering both the benefits that flow from as well as the monetary cos
yarga [219]
<h3>Hello there!</h3>

Your question asks what an opportunity cost of an action is.

<h3>Answer: D). is a subjective valuation that can be determined only by the individual who chooses the action.</h3>

The reason why answer choice "D). is a subjective valuation that can be determined only by the individual who chooses the action" is correct because an opportunity cost of an action is not the same for everyone.

An opportunity cost of an action is subjective, meaning that the action can be determined by someone's opinion, feelings, etc. Everyone thinks differently, therefore making everyone's opportunity cost of action different.

A opportunity cost of an action also is determined by the individual themselves, not anyone else. That's why the action is subjective, due to the fact that the decision on the action is determined by the individual personal opinions and feelings.

<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
8 0
3 years ago
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