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Julli [10]
2 years ago
5

Equipment with a cost of $150,000 has an accumulated depreciation of $100,000. What is the historical cost of the equipment?

Business
1 answer:
aliina [53]2 years ago
6 0

<u>Determination of historical cost of Equipment:</u>


A historical cost is the original cost of the assets purchased. It is the value at which the asset is recorded in the accounts.  In other words, historical cost is the nominal or original cost at which the asset was acquired.

In the given case it is given that Equipment has a cost of $150,000.


Hence the historical cost of Equipment shall be <u>$150,000.</u>



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Answer:

Company should load 1,479.9 motorcycles on each truck.

Explanation:

Cost per trip = $1,000

Demand for motorcycles = 300 per day

Cost per engine = $500

Holding cost =  20% of $500

                     = $100

Assuming that company plant works for 365 days in a year,

Annual demand = 300 motorcycles × 365 days

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Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2DS}{H}}

where,

D = Annual demand in units

S = Set up cost per order

H = Handling cost per order

Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2\times109,500\times1,000}{100}}

=\sqrt{\frac{219,000,000}{100} }

\sqrt{2,190,000}

= 1,479.9

Thus, the company should load 1,479.9 motorcycles on each truck.

5 0
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3 years ago
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Mrrafil [7]
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2 years ago
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Answer:

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3 0
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