Answer:
Total incremental net income = $28,000
Incremental per gallon increase in net income = $0.70 per unit
Explanation:
a. The preparation of incremental statement to find out the increase in net income
Total production $140,000
Less:
Incremental cost
Direct material $68,000
($1.70 × 40,000 gallons)
Direct labor $24,000
($0.60 × 40,000 gallons)
Variable manufacturing
overhead $20,000
($0.50 × 40,000 gallons)
Total incremental cost ($112,000)
Total incremental net income $28,000
b. Incremental per gallon increase in net income = Total incremental net income ÷ Total quantity
= $28,000 ÷ 40,000 gallons
= $0.70 per unit
Therefore the total incremental net income is $28,000 and incremental per gallon increase in net income is $0.70 per unit.
Answer:
a leasehold
Explanation:
Leasehold relates to an accounting phrase for a rented resource. Usually the asset is estate such as a house or storage within a building. The lessee buyouts with the property owner in return for a sequence of planned payouts throughout the lease term, for the lawful right to utilize the estate.
Once a lease agreement is signed, to a degree permitted by the deal, the purchaser or tenant starts to construct the accommodation for its activities. In commercial real estate, leaseholds are much more popular whereby supermarkets as well as other facilities can be constructed on the ground but often occur in housing uses, such as homes and condos.
Answer:
No close substitutes for the product exist and there is one seller.
Explanation:
Answer:
$15,000
Explanation:
Joe has sold the house he has been living in for 10 years to the Smiths family
He sold the house at $300,000
Joe receives $50,000 more than the original price bargained 10 years ago
He pays the real estate agent a commission of 5%
= 5/100
= 0.05
Therefore the increase in gross domestic product can be calculated as follows
= $300,000×0.05
= $15,000
Hence, the transaction will increase the gross domestic product by $15,000
Answer:
$29.83
Explanation:
This question requires application of dividend discount model, according to which current value of share is present value of dividends expected in future.
where V2 is the terminal value, present value of dividends growing at constant growth rate,
V2 = Div3 ÷ (r - g)
Div3 = $2.24 × (1 + 2.8%)
= $2.30272
V2 = $2.30272 ÷ (0.102 - 0.028)
= $2.30272 ÷ 0.074
= $31.12
= 2.36 + 1.84 + 25.63
= $29.83
