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aalyn [17]
3 years ago
10

Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 43,000 parts is $140,

000, which includes fixed costs of $68,000 and variable costs of $72,000. The company can buy the part from an outside supplier for $3.80 per unit, and avoid 30% of the fixed costs. If Blue Ridge Bicycles makes the part, how much will its operating income be?
Business
1 answer:
kifflom [539]3 years ago
8 0

Answer:

$71,000

Explanation:

The computation of operating income is shown below:-

Total costs if company bought = Cost of production × Outside supplier per unit) + (Fixed cost × Remaining percentage)

= (43,000 × $3.80) + ($68,000 × (100% - 30%))

= (43,000 × $3.80) + ($68,000 × 70%)

= $163,400 + $47,600

= $211,000

Loss in Income if part is bought = Total costs if company bought - Total costs originally

= $211,000 - $140,000

= $71,000

Therefore, Making profit will be more by $71,000 and for computing the Loss in Income if part is bought we simply applied the above formula.

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Which of the following is not deductible as an itemized deduction?a. State income taxesb. Personal property taxesc. Charitable c
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Answer:

The correct answer is letter "E": All of the above may be deductible as itemized deductions .

Explanation:

Itemized deductions can be deducted from the Adjusted Gross Income (AGI) as long as they are eligible expenses on products, services or contributions. They allow the taxpayer to pay less in contrast to the regular deduction method. Itemized deductions may include but are not limited to personal taxes, medical expenses, interest, charitable gifts, casualty losses, and state and local taxes.

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A currency drain occurs when
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The correct answer is: non-bank public increases its holdings of currency outside the banking system.

Explanation:

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3 years ago
Which three factors decrease because of protectionism?
boyakko [2]

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competition, goodwill with trade partners, and importation of goods

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3 years ago
On January 1, 2020, NoDice Corporation issues $540,000, 5-year, 12% bonds for $529,000. Interest is paid semiannually on January
Svet_ta [14]

Answer:

Dr Interest expense                    $33,500

Cr Discount on bonds payable                 $1,100

Cr Cash                                                            $32,400

Explanation:

Discount on bonds payable=$540,000-$529,000=$11,000

Amortization of discount=discount on bonds issue/period of the bond

period to maturity of the bond is  5 years *2 =10 since the bond pays interest semi-annually

Amortization =$11,000/10=$1,100

Semi-annual interest=$540,000*12%/2=$32,400

the bond semi-annual interest expense=discount amortization+interest payment

the bond semi-annual interest expense=$32,400+$1,100=$33,500

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