The goal in a command economy is economic _________

A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,

ludmilkaskok [199]

Answer:

It is more convenient to rework the units and sell them for the full price.

Explanation:

Giving the following information:

The company has 19,000 defective units.

The units can be:

a) sold as-is for $3.40 each

b) reworked for $4.80 each and then sold for the full price of $8.80 each.

<u>We won't take into account the firsts $5.4 costs because they are irrelevant for the decision-making process.</u>

Sell as-is:

Effect on income= 19,000*3.4= $64,600

Rework:

Effect on income= 19,000*(8.8 - 4.8)

Effect on income= $76,000

It is more convenient to rework the units and sell them for the full price.

5 0

3 years ago

Stephen and Joy own a duplex in Newport Beach, CA. They live in one unit and rent the other to another couple. Their rental inco

sertanlavr [38]

Answer:

$16,700

Explanation:

The computation of net income is shown below:-

Total expense = Insurance + Maintenance + Utilities + Depreciation

= $8,000 + $800 + $1,800 + $4,000

= $14,600

Expense of rented unit = Total expense ÷ Units

= $14,600 ÷ 2

= $7,300

Here, we assume 2 units

Net income for reporting = Rental income - Expense of rented unit

= $24,000 - $7,300

= $16,700

7 0

3 years ago

Assume Organic Ice Cream Company, Inc., bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freez

Svet_ta [14]

Answer:

The machine has a useful life or 4 years and residual value of $1400 so its total The Depreciable Amount is $21,600 (22000-1400)

If we use straight line method depreciation in each year will be 21,600/4=$5400

If we use Units of production method then:

Year 1= 21,600*4120/10300=$8640

Year 2=21600*3090/10300=$6480

Year 3=21600*2060/10300= $4320

Year 4= 21600*1030/10300=$2160

If we use the double-declining method

Rate of Depreciation = 1/4*2=50%

Year = 0.5*21600=$10800

Year 2=0.5*(21600-10800)=$5400

Year 3= 0.5*(10,800-5400)= $2700

Year 4= (5400-2700)= 2700

Explanation:

5 0

3 years ago

The stock of Top of the Muffin currently pays a dividend of $2.85. The dividend is expected to grow by 30% per year for the next

rjkz [21]

Answer:

Consider the following calculation

Explanation:

Year 1 dividend = 2.85 (1 + 30%) = 3.705

Year 2 dividend = 3.705 (1 + 30%) = 4.8165

Year 3 dividend = 4.8165 (1 + 30%) = 6.26145

Year 4 dividend = 6.26145 + 2.4 = 8.66145

Year 5 dividend = 8.66145 (1 + 2%) = 8.834679

Value at year 4 = D5 / required rate - growth rate

Value at year 4 = 8.834679 / 0.108 - 0.02

Value at year 4 = 8.834679 / 0.088

Value at year 4 = 100.39408

Share price = Present value of cash inflows

Share price = 3.705 / (1 + 0.108)1 + 4.8165 / (1 + 0.108)2 + 6.26145 / (1 + 0.108)3 + 8.66145 / (1 + 0.108)4 + 100.39408 / (1 + 0.108)4

Share price = $84.23

4 0

4 years ago

some pencils are to be shared between grade 7, grade eight students receive 196 more than grade 7 students no, find the total nu

allochka39001 [22]

Answer:

203

Explanation:

5 0

3 years ago

The goal in a command economy is economic __________.