Answer:
A. $74,000
Explanation:
Since in this question, Tiffany is retired so we have to find the new ratio which is shown below:
As Tiffany take the shares of both the partners in 3: 2
So, the new ratio would be
Ron share = (3 ÷ 5) × (1 ÷ 6) = 3 ÷ 30
Stella share = (2 ÷ 5) × (1 ÷ 6) = 2 ÷ 30
So the ratio would be 3: 2
The 1 ÷ 6 is the Tiffany ratio
Now the balance after Tiffany withdraws from the partnership equals to
= Paid amount by Tiffany - Tiffany capital
= $60,000 - $50,000
= $10,000
Ron's given amount = ($10,000 × 3 ÷ 5) = $6,000
So, Ron's capital balance equals to
= Ron's capital - Ron's given amount
= $80,000 - $6,000
= $74,000
Answer:
The company's income will decrease in $1,500
Explanation:
Giving the following information:
Burlington Company offers to purchase 3,000 units at $9 each. HHI will incur special shipping costs of $2.50 per unit. HHI Company $7 of variable costs.
The company has unused capacity, so we will not have into account the fixed costs.
Total variable cost= 7 + 2.5= 9.5
Selling price= 9
Marginal contribution= -0.5
Effect in income= -0.5*3000= $-1,500
Answer: Whether the total cost changes when activity levels change.
Explanation:
fixed costs are costs that remain the same regardless of the level of production or services offered and variable costs production costs that change when production levels change. the difference I fixed cost stays the same and variable costs can change.
The difference between fixed and variable costs is that fixed costs do not change with activity volumes, while variable costs are closely linked to activity volumes. Thus, fixed costs are incurred over a period of time, while variable costs are incurred as units are produced.
Fixed Cost is definite; it will incur even when there is no units are produced. ... On the other hand, variable cost remains constant per unit. Examples of fixed costs are rent, tax, salary, depreciation, fees, duties, insurance, etc. Examples of variable costs are packing expenses, freight, material consumed, wages, etc.
the difference between a variable and a fixed cost can be deduced Whether the total cost changes when activity levels change.
