Answer:
Calculation of Gain or Loss:
Book Value of Truck = 25,200 - 22,680
= $2,520
Gain on Exchange = 4,158 - 2,520 - 630
= $1,008
Therefore, the journal entry is as follows:
Accumulated Depreciation A/c Dr. $22,680
computer A/c Dr. $3,150
To Truck $25,200
To Cash $630
(To record the Truck)
Explanation:
when a payment is made the entries recorded are debit prepaid expenses
Answer:
125,000 units
Explanation:
Given that,
Target profit = $300,000
Unit sales price = $12
Unit variable cost = $8
Total fixed costs = $200,000
Firstly, we need to find out the contribution margin per unit:
= Unit sales price - Unit variable cost
= $12 - $8
= $4
Now, units required to sold for earning the desired profit is calculated by dividing the sum of desired net income and total fixed costs by the contribution margin per unit. It is calculated as follows:
= (Target net income + Total fixed cost) ÷ Contribution margin per unit
= ($300,000 + $200,000) ÷ $4
= $500,000 ÷ $4
= 125,000 units
Therefore, this company must be sold 125,000 units to earn income of $300,000.
Answer:
Utilitarian approach.
Explanation:
Utilitarian approach evaluates actions to be taken in terms of its consequences and outcomes.
The aim of the utilitarian approach is to ensure the largest number of people benefit while the lowest number of people are harmed.
In this scenario Jacques uses a cost-benefit analysis to decide if moving operations overseas is better than increasing the size of the current manufacturing facility in the United States.
Cost benefit tries to determine if the benefit of an action outweighs it's cost. Based on findings the best option that has the greatest benefit is selected.
Answer:
The business issues have been researched and given thus:
Explanation:
While planing to expand their capacity to an additional 6 locations, Budget Travel should consider the following:
Do they have staff at the new locations? Can they hire or transfer well trained and experienced staff to handle these new locations?
what time zones are they considering? Is there likely to be a problem managing operations in these zones?
What expenses will they have to incur at the new locations in terms of office space and set up
Can the client management software be used at an additional 6 locations? Will they need to ask the IT company for further customization? If yes, what will it cost?
Lastly a cost benefit analysis should be carried out to see if it is worthwhile
The company may need to move their high performers to these locations to help overcome the initial teething problems. This could cause these individuals to get stressed out with excess travel, living away from home and working long hours. The benefits offered to these employees should be high. at the time, care should be taken to ensure the staff are well rested and motivated. Expectations are naturally going to be high, but performance evaluation should be carried out in a friendly and supportive manner using the two-way feedback mechanism, where the employee can give his explanation for performance issues and challenges.
It is required that the company establish a system baseline before integration of the six sites. this will give all executives and managers greater clarity and ability to perform. A dysfunctional system is the cause of failure in any MNC and it can cause a complete breakdown in operations at a well respected company like Budget Travel
