Answer:
Net income = Revenue - Expenses
4600-2400=2200
Answer:
$91,580
Explanation:
The cost of an asset includes all cos incurred in making the asset available for use. These includes the cost of the item net all discounts, sales tax, freight cost etc.
As long as the cost is necessary for the asset to be available for use, such cost will be capitalized with the cost of the item of asset. Other cost such as maintenance, insurance costs are expensed and not considered as a part of the cost of the asset.
Cost of Land
= $77000 +$500 + $1600 - $170 + $1150 + $11000 + $500
= $91,580
Answer:
$326,400
Explanation:
The breakeven point is the number of units of a product a company must sell for its total revenue to be equal to its total cost. The cost elements are fixed and variable. At breakeven, profit/loss is zero hence revenue or sales is equal to cost.
From the information given,
Variable cost per unit = $ 187,500/50,000
= $3.75
Sales per unit = $500,000/50,000
= $10
let the number of units sold at breakeven point be x
10x - 3.75x - 204,000 = 0
6.25x = 204,000
x = 32,640
Breakeven sales = 32,640 * $10
= $326,400
Answer:
Explanation:
When we talk about wages and labor hours, we can observe the choice a worker has between leisure and work. In this case, Daniel's wage increased from $67 to $76 per hour, meaning that for him, work becomes more profitable than leisure, as he's earning more per hour that he works. In this case, the substitution effect shows how attractive it can be for Daniel to give up leisure to do more hours of work because of a higher reward. However, as his wage is higher now, the income effect highlights the possibilities of keeping up with a decent standard of living, without spending as many hours as he did before working. He has the possibility to increase his leisure hours, as he's been paid more per hour worked.
