Answer:
Decrease by $27000
Explanation:
Given that
Contribution margin = 44000
Initial fixed cost = 54000
Final fixed cost = 37000
Recall that
Net operating income = Contrubution Margin - Net fixed cost.
NOI = 44000 - (54000 - 37000)
NOI = 44000 - 17000
NOI = $27000
Thus, Net operating income decreased by 27000.
Answer:
50,000
Explanation:
Hughes Corporation can calculate the incremental cash outflow required to acquire the new machine by just deducting the sales proceeds from the cost of the new machine.
DATA
New machine = $150,000
Old machine = 100,000
Cash outflow per year (18,000 - 10,000) = 8,000
Salvage value = 25,000
Annuity factor = 8%
Solution
Incremental Cash outflow = Cost of new machine - Sales proceeds from old machine
Incrementa Cash outflow = 150,000 - 100,000
Incremental Cash outflow = $50,000
Answer:
The amount of the Depletion Expense recognized for 2018 would be 240,000
Explanation:
In order to calculate the The amount of the Depletion Expense recognized for 2018, we have to calculate first the depletion expense per ton.
Hence, Depletion expense per ton = $1,600,000/400,000 = 4
Therefore, if the Depletion expense per ton is 4, and during 2018 60,000 tons of granits were sold then the Depletion expense to be recognized for 2018 will be=60,000*4
= $240,000. Amount of the Depletion Expense recognized for 2018
The answer & explanation for this question is given in the attachment below.
