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Sliva [168]
3 years ago
7

The original capacity of the equipment is 10,000 units per year. After paying $2,500 to replace an important part, the company i

ncreases the capacity of equipment to 12,000 units per year. How does the company deal with the $2,500 expenditures
Business
1 answer:
Sauron [17]3 years ago
7 0

Answer:

The firm must increase the value of the equipment account by $2,500.

Explanation:

In this case, the repair expense must capitalize the asset account and not be considered an expense, instead it should be considered an additional investment. The $2,500 should be depreciated along with the normal depreciation of the equipment since it increased the productive capacity significantly.

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Sheridan Company prepared a 2019 budget for 150000 units of product. Actual production in 2019 was 175000 units. To be most usef
KengaRu [80]

Answer:

The actual results for 175,000 units with a new budget for 175,000 units.

Explanation:

To be more useful, actual results should be compared with budgeted amounts of actual production.

The actual results for 175,000 units should be compare with a new budget for 175,000 units

7 0
3 years ago
Analysts predicted earnings per share (EPS) for your company to be $0.XX at the close of 20XX. How does this compare to actual E
nikdorinn [45]

Answer and Explanation:

Earnings per Share, EPS = <u>Net Income dividend of preferred stock</u>

                                            Number of stock outstanding

EPS  depends on the earnings and its dilution due to increase in preferred stock also it depends on the net income earned

When EPS is higher than analyst prediction,

this may be due to increase in the net income

or

payback of common stock or preferred stock

thereby leading to reduction in the number of stock outstanding

When EPS is lower than analyst prediction

this would be due to reduction in the net income

or

increase of stock or preferred stock due to fresh issue

Insurance against issues that could lead to reduction on income and inrease in the activities that will lead to net income increase can help meet or surpass analyst prediction

7 0
3 years ago
For normal goods, the demand curve is: A. upward sloping only if the income effect is larger than the substitution effect. B. al
Kruka [31]

Answer:

B) always downward sloping.

Explanation:

The demand curve for normal goods is always downward sloping because of a combination of three factors:

  1. the purchasing power of the customers decrease and if the price of a product increases, consumers will be able to buy less even if they don't want to
  2. consumer surplus decreases since the difference between how much a consumer is wiling to pay for the good and its actual price decreases or even becomes negative, so they will not be willing to purchase it
  3. as the price of normal goods increases, consumers will tend to increase the quantity demanded for substitute products

6 0
3 years ago
Henry bakes loaves of bread, which he sells for $4 each. He is considering purchasing additional mixers (capital) for his bakery
babunello [35]

Answer: The complete table is as follows:

Explanation:

The following are the formulas for calculating marginal product , total revenue and marginal revenue product:

Marginal product = \frac{Change\ in\ Total\ Product}{Change\ in\ Capital}

Total revenue = Price × Quantity

Marginal revenue Product = Marginal product × Price

By using these formulas, I have completed the following table:

6 0
3 years ago
Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be $125,000 in year 1 and incre
Inessa05 [86]

Answer:

The equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually is $127,432

Explanation:

In order to calculate the equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually we would have to calculate the following formula:

equivalent uniform annual worth of the maintenance costs= P(i(1+i)∧n/(1+i)∧n-1

The rate of interest i would be as follows:

rate of interest i=(1+10%/2)-1

rate of interest i=0.1025*100

rate of interest i=10.25%

The present value P would be calculated as follows:

present value P=$125,000(1-(1+1/100)∧5 (1+10.25/100)∧-5/(10.25/100-1/100)

present value P=$125,000*3.84

present value P=$480,000

Therefore,

equivalent uniform annual worth of the maintenance costs=$480,000*(10.25/100 (1+10.25/100)∧5/(1+10.25/100)∧5-1)

equivalent uniform annual worth of the maintenance costs=$480,000*0.2654

equivalent uniform annual worth of the maintenance costs=$127,432

The equivalent uniform annual worth of the maintenance costs at an interest rate of 10% per year, compounded semiannually is $127,432

5 0
3 years ago
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