Answer:
Debit Supplies $8,900; Credit Cash $8,900
Explanation:
Based on the information given the general journal entries that Specter Consulting will make to record this transaction assuming the companyâs policy is to initially record prepaid and unearned items in balance sheet accounts will be :
Debit Supplies $8,900
Credit Cash $8,900
Answer:
a.$42,000
Explanation:
The computation of the total period cost for the month under the absorption costing is shown below
= Variable selling and admin cost + Fixed selling and admin cost
where,
Variable selling and admin cost is
= $9 × 1,500 units sold
= $13,500
And, the fixed selling and admin cost is $28,500
So, the total period cost is
= $13,500 + $28,500
= $42,000
As we know that the period cost includes the major part of selling and admin expenses and we considered the same
Answer:
Chen should buy the new machine since it produces a positive NPV of $1,294
Explanation:
Summary of the Project Cash Flows is as follows :
Year 0 = ($120,000)
Year 1 to Year 10 = $18,900
The Project cost of capital = 9%
Calculation of the Project`s NPV :
<em>NPV can be calculated from this summary using a financial calculator as :</em>
<em>CF0 = ($120,000)</em>
<em>CF1 = $18,900</em>
<em>Nj = 10</em>
<em>i = 9 %</em>
<em>NPV = ? </em>
<em>NPV = $1,293.73 or $1,294</em>
The Project is accepted only if it has a Positive NPV
Conclusion,
Chen should buy the new machine since it produces a positive NPV of $1,294.
I think that in most countries, the marketing analysts would focus on the middle class. One factor is that, the rich class would always be outnumbered by the middle and the lower class. So even if they buy high-priced goods, they would only contribute a small part of the total profit. On the other hand, lower class people can't afford much of these products. That is maybe why commodities are advertising lower prices so as to attract more people. Hence, the answer is most probably letter D.