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Damm [24]
3 years ago
6

On January 1, the Matthews Band pays $67,600 for sound equipment. The band estimates it will use this equipment for four years a

nd perform 200 concerts. It estimates that after four years it can sell the equipment for $1,000. During the first year, the band performs 45 concerts. Compute the first-year depreciation using the units-of-production method.
Business
1 answer:
meriva3 years ago
8 0

Answer: $14,985

Explanation:

Using the Units-of-Production method means that the asset is depreciated based on how many times it is used.

The formula is;

= ( Cost - Salvage Value)/Total Usage

= (67,600 - 1,000) / 200

= $333 per concert

Equipment depreciates by $333 per concert.

First year has 45 concerts;

= 333 * 45

= $14,985

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Answer: $222,800

Explanation:

Given that,

Sales = $427,000

Cost of goods sold (all variable) = $173,400

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Total fixed administrative expense = $36,300

Variable expenses:

= Cost of goods sold + Variable selling expense + Variable administrative expense

= $173,400 + $21,200 + $9,600

= $204,200

Contribution margin = Sales - Variable expenses

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5 0
3 years ago
Both power distance and femininity are negatively related to the Environmental Sustainability Index.
cricket20 [7]

Both power distance and femininity are negatively related to the Environmental Sustainability Index. False

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Environmental sustainability is described as appropriate contact with the environment that promotes long-term environmental quality while preventing resource depletion or degradation. Environmental sustainability is a method that makes it possible to meet the requirements of the current generation without endangering the ability of future generations to do the same.

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To learn more about Environmental Sustainability from the given link:

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8 0
2 years ago
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Tatiana [17]
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7 0
4 years ago
Obama Company sells its product for $25 per unit. During 2012, it produced 20,000 units and sold 15,000 units (there was no begi
horrorfan [7]

Answer:

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Explanation:

Giving the following information:

direct materials $5

direct labor $4

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The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate the product unitary cost.

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