Answer:
e. $89,337.60
Explanation:
Given that
The cost of the asset = $108,000
And, the MACRS rate is .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6
So the accumulated depreciation at the end of the year 4 is
= ($108,000) × (0.2 + 0.32 + 0.192 + 0.1152)
= $108,000 × 0.8272
= $89,337.60
By multiplying the cost of the asset with the MACRS rate upto fourth year we can get the accumulated depreciation
Answer
A= Net operating loss = (924800)
B= Net operating profit = $9000
Explanation: A B
(Poinsettia) (Fruit tree)
$ $
Sales =970000 ; = 3100000
less: Variable cost of goods sold = (<u>460000</u>) ; =(<u>1630000</u>)
Gross contribution margin 510000 ; 1470000
Less: <u>Selling expense (4% o sales)</u>
A (970000*4%)
B(310000 *4%) ( <u>38800</u>) ; ( <u>124000</u>)
Contribution margin 471200 ; 1346000
Less: Fixed overheads <u> (800000</u>) ; <u> (800000)</u>
(328800) ; 546000
less: Fixed Selling & admin expense <u>(146000)</u> ; <u> (87000) </u>
(474800) ; (459000)
Less: Common selling and admin expense (<u>450000) </u> ; (<u>450000)</u>
Net operating income /( loss) (924800) ; 9000
Answer:
$6,237,600
Explanation:
The computation of Estimate commission revenues is shown below:-
In the Coming year the market volume = 100% - 20%
= 80%
In the Coming year the number of sales = 100% - 8%
= 92%
In the coming year the Average commission per trade = 100% + 13%
= 113%
Commission revenue = Sold tickets × Average commission × In the Coming year the market volume × In the Coming year the number of sales × In the coming year the Average commission per trade
= 750,000 × $10 × 0.80 × 0.92 × 1.13
= $6,237,600
We applied the same formula to find out the commission revenue earned by the company
Answer:
Sunk costs.
Explanation:
Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.
Example
ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.
Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.
