Answer:
Unit cost
$
Variable costing 18
Absorption costing 26.5
Explanation:
<em>Variable costing values every unit produced at the marginal cost</em>. Marginal cost is the sum of direct material, direct labor and variable overhead.
Marginal cost = 7.50 + 10.50 =$18
<em>Absorption costing values every unit at full cost</em>. Full cost is the sum of marginal and fixed overhead cost per unit,
Fixed overhead cost per unit = $297,500/35,000=8.5
Full cost = 7.50 + 10.50 + 8.50= $26.5
Unit cost
$
Variable costing 18
Absorption costing 26.5
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Answer:
$587,500
Explanation:
You are required to calculate the value of the levered firm;
vL = vU + Dt, whereby;
vL = Value of levered firm
vU = value of unlevered firm
Dt = debt * tax ; which is the tax shield
Find value of unlevered firm;
vU = [EBIT(1-tax) ]/ rE
= [100,000(1-0.30)] / 0.16
= 437,500
Value of levered firm;
vL = 437,500 + (500,000*0.30)
= 437,500 +150,000
= $587,500
Answer:
C. Unearned revenue would be debited for $700.
E. Service revenue would be credited for $700.
Explanation:
As we recieve the payment in-advance we take the obligation to perform our duties with the customer.
Therefore it is unearned revenue (liability)
at year-end there is a portion which is still unearned by the amount of 300 dollars Hence, the difference was earned: 1,000 - 300 = 700
we will decrease our liability against the customer and recognize the revenue by crediting service revenue.
The Consumption schedule shows the relationship of household consumption to the level of disposable income.
<h3>What is disposable income?</h3>
Disposable income is the sum of money that a person or household has available for spending or saving after income taxes have been subtracted (sometimes known as disposable personal income, or DPI). At the macroeconomic level, one of the most important economic indicators used to assess the overall health of the economy is disposable personal income. Net income equals disposable income. It is the balance remaining after taxes. The amount of net income that is left over after covering all essentials is referred to as discretionary income.
You could define disposable income as:
- A country's national income less current transfers (current taxes on wealth, income, and other items, as well as social contributions and other current transfers), plus current transfers that residents of that country can get from the rest of the world.
- Income that individuals or families have available for discretionary spending, is often known as disposable personal (or family/household) income. The amount of money left over after paying for bare needs like shelter, food, and fuel for a family is referred to as disposable income.
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