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zepelin [54]
3 years ago
13

Glascro Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the

leasing of machinery. Data for the past four months were collected as follows: Month Lease cost Machine hours April $15,000 800 May 10,000 600 June 12,000 770 July 16,000 1,000 Using the high-low method, calculate the fixed cost of leasing. (A) $1,500 (B) $2,500 (C) $1,000 (D) $2,000
Business
1 answer:
Ber [7]3 years ago
6 0

Answer:

$1,000

Explanation:

We know that

Total cost = Fixed cost + Variable cost

From the data given, we can calculate the variable cost using the high-low technique.

Variable cost per unit

=\frac{Total cost at highest level-Total cost at lowest level }{Highest level - Lowest level} \\\\=\frac{16,000-10,000}{1,000-600 } \\

=$15

Lease cost = FC + $15(Machine hours)

Lease cost -$15(Machine hours) = FC

Case,

i) 800 machine hours,

FC = Lease cost - $15(Machine hours)

     = $16,000 -$15(1000) = $1,000

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The marginal utility curve is: A) upsloping because of increasing marginal opportunity costs. B) upsloping because successive un
kotykmax [81]

Answer:

D) downsloping because successive units of a specific product yield less and less extra utility.

Explanation:

The marginal utility curve is downsloping because successive units of a specific product yield less and less extra utility or benefits.

It gives the relationship between the utility derived from the consumption of an additional unit of a good and the quantity of the good consumed.

8 0
2 years ago
When supply increases, the supply curve
MariettaO [177]

When supply increases, the supply curve  shifts to the right.

<h3>What is the supply curve?</h3>

This is the curve that is used to show the amount of goods that the producers would be able to make available for the market at a particular price. The supply curve shifts to the right when there is an increase in supply in the economy.

Hence this answers our question by saying that When supply increases, the supply curve  shifts to the right.

Read more on supply curve here: brainly.com/question/11717727

#SPJ1

5 0
1 year ago
Michael company issued 8% bonds with a par value of 1,000,000 receiving 20,000 premium on the interest date 5 years later, after
sattari [20]

Answer:

option D - $22,000 gain

Explanation:

the gain can be calculated by using the following relation

Face Value + Unamortized Premium - Purchase Price = gain

where,

Face Value - $1,000,000

 Unamortized Premium - 60% x $20,000

Purchase Price - 99% x $1,000,000

putting all value to get gain or loss on the retirement

= $1,000,000 + (60% x $20,000) - (99% x $1,000,000)

=  $22,000 gain

6 0
3 years ago
Jake owns a company called Boat Builders, LLC and one evening he took several of his employees out after work to a bar. After ea
lakkis [162]

Answer:

<u>Yes, because Boat Builders, LLC failed to exercise a reasonable standard of care at their premises.</u>

Explanation:

<em>Remember, </em>we are told, "Jake... invited them back to the Boat Builders premises," meaning they (Boat Bilders, LLC) had a duty of care responsibility toward all of his employees present.

Note we are told, "Mark made light of it but gave Jake a menacing look so Jake dropped it," this was a moment that shows Jake's negligence because as the owner of Boat Builders he had a duty of care to ensure no one is hurt without their own fault within their premises (which included their "parking lot").  

4 0
3 years ago
For the year ended December 31, a company had revenues of $187,000 and expenses of $109,000. $37,000 in dividends were paid duri
Dovator [93]

Answer:

D) Debit income summary 187000, credit revenues 187000

Explanation:

When dividend is declared, following journal entry is passed

Retained Earnings                                    Dr.

    To Dividend Payable

(Being declared dividend recorded)

When dividends are actually paid, the journal entry is

Dividend Payable A/C                              Dr.

     To Cash A/C

(Being dividend paid recorded)

Income summary account is prepared as a temporary account while income statement represents permanent account.

Income summary shows net income balance i.e Revenue less expenses.

As per the given information in the question, debiting income summary account with total revenues of $187000 would be wrong.

3 0
2 years ago
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