Answer:
$6,278
Explanation:
The discount of issuance of bond will be amortized until period of maturity while Total interest expense on a discounted bond is the addition of amortization of the discount amount and coupon payment.
Therefore;
Coupon payment = $73,000 × 8%
= $5,840
Discount on the bond = $73,000 - $70,810
= $2,190
Discount amortized per year = $2,190/5
= $438
Total interest expense = Coupon payment + Amortization of discount
= $5,840 + $438
= $6,278
The demand of the buyers on products are supplied by the market.
Answer:
a.
VC/unit = $3 per unit
Fixed Cost = $800
b.
Total Cost = $25400
Explanation:
a.
The high-low method is used to separate the components of a mixed cost and it calculates the variable cost component in a mixed cost. The formula to calculate the variable cost per unit under the high-low method is as follows,
VC/unit = [Highest Activity cost - Lowest Activity Cost] / [Highest Activity units - Lowest Activity units]
VC/unit = [22400 - 6500] / [7200 - 1900]
VC/unit = $3 per unit
Using figures from March, The total fixed costs will be,
Fixed cost = 6500 - [3 * 1900]
Fixed Cost = $800
b.
Total cost in a month with 8200 units will be,
Total Cost = Total Fixed cost + Total variable costs
Total Cost = 800 + (3 * 8200)
Total Cost = $25400
Answer:
$284,000
Explanation:
Movements in the retained earnings account are as a result of the payment of dividend and the addition of the income or loss for the year.
Given that
Baxter generated revenues = $40,000
incurred expenses = $24,000
purchased equipment = $10,000 and
paid dividends = $4,000
Net income/(loss) = $40,000 - $24,000
= $16,000
Retained Earnings at September 30, 2012
= $272,000 + $16,000 - $4,000
= $284,000
