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34kurt
3 years ago
6

Cactus Company purchased a new machine on August 1, 2017. At that time, the original cost of the machine was recorded at $180,00

0 with an estimated salvage value of $20,000. Total service hours expected for this machine is 100,000. During 2017, the machine was used for 825 hours. During 2018, the machine was used for 3,115 hours.
Business
1 answer:
OleMash [197]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Cactus Company purchased a new machine on August 1, 2017. At that time, the original cost of the machine was recorded at $180,000 with an estimated salvage value of $20,000. Total service hours expected for this machine is 100,000. During 2017, the machine was used for 825 hours. During 2018, the machine was used for 3,115 hours.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Year 1= [(180,000 - 20,000)/100,000]*825= $1,320

Year 2= 1.6*3,115= $4,984

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1 year ago
Perez Company reported the following data regarding the product it sells: Sales price $ 56 Contribution margin ratio 25 % Fixed
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Contribution margin ratio = 1 - variable cost ratio

                                          = 25%

(a) Break\ even\ in\ dollars=\frac{fixed\ costs}{contribution\ margin}

Break\ even\ in\ dollars=\frac{350,000}{0.25}

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 Break\ even\ in\ units=\frac{Break\ even\ in\ dollars}{sales\ price}

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