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marysya [2.9K]
3 years ago
6

Suppose that in the base period a college student buys 20 gallons of gasoline at $2 per gallon, 2 CDs for $13 each, and 4 movie

tickets for $7 each. In the next month, the price of gasoline is $2.25 per gallon, CDs cost $12.50 each, and the price of a movie ticket is $7.50.(Scenario: Price Index) The price index for the second month is:
(A) 94
(B) 106.4
(C) 100
(D) 101.1
Business
1 answer:
spayn [35]3 years ago
4 0

Answer:

The correct answer is option B.

Explanation:

In the base period a college student buys 20 gallons of gasoline at $2 per gallon, 2 CDs for $13 each, and 4 movie tickets for $7 each.

In the next month, the price of gasoline is $2.25 per gallon, CDs cost $12.50 each, and the price of a movie ticket is $7.50.

The price index

= \frac{price\ of\ basket\ in\ the\ current\ year}{price\ of\ basket\ in\ the\ base\ year}\ \times\ 100

= \frac{100}{94}\ \times\ 100

= 106.38 or 106.4

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C

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Chang Corporation issued $6,000,000 of 9%, ten-year convertible bonds on July 1,2017 at 96.1 plus accrued interest. The bonds we
Nataly_w [17]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

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3 years ago
Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports.
avanturin [10]

Answer:

$335,428

Explanation:

The computation of the plane operating cost is shown below:

Plane Operating Cost = Fixed cost + (Variable cost per unit × quantity) + (Variable cost per unit × quantity)

= $41,490 + ( $2,839 × 101 flights) + ($23 × 313 passengers)

= $41,490 + $286,739 + $7,199

= $335,428

We only considered the planned activity as we have to compute the plane operating cost for the planning budget

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3 years ago
On January 1, Year 1, Lowing Company acquired a patent from Generics Research Corporation for $3 million. The legal life of the
pickupchik [31]

Answer:

The amount of amortization expense each year is $500,000.

Explanation:

This can be calculated as follows:

Patent original cost = $3,000,000

Salvage value after 5 years = $500,000

Number of years to use before selling it = 5 years

Therefore, we have:

Annual amortization expense = (Patent original cost - Salvage value after 5 years) / Number of years to use before selling it = ($3,000,000 - $500,000) / 5 = $500,000

Therefore, the amount of amortization expense each year is $500,000.

4 0
3 years ago
Columbia Products produced and sold 1,400 units of the company’s only product in March. You have collected the following infor
s344n2d4d5 [400]

The computation of the following costs by Columbia Products is as follows:

a. Variable manufacturing cost per unit is $64.

b. Full cost per unit is $96, including manufacturing and marketing and administrative costs.

c. The variable cost per unit is $68.

<h3>Data and Calculations:</h3>

Production and sales units in March = 1,400 units

Sales price (per unit) = $129

<h3>Manufacturing costs: </h3>

Fixed overhead (for the month) = $16,800

Direct labor (per unit) =              $7

Direct materials (per unit)          31

Variable overhead (per unit)    26

Variable manufacturing cost $64

The Fixed cost per unit = $12 ($16,800/1,400)

The total manufacturing cost per unit = $76 ($64 + $12)

<h3>Marketing and administrative costs: </h3>

Fixed costs (for the month) = $22,400

Variable costs (per unit)  = $4

Fixed costs per unit =        $16 ($22,400/1,400)

The total marketing and administrative costs per unit = $20 ($4 + $16)

Full cost per unit = $96 ($76 + $20)

Variable cost per unit = $68 ($64 + $4)

Learn more about variable, fixed, and full costs here: brainly.com/question/15684424

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2 years ago
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