Answer:
<em>The company should use all of its limited machine hour to produce only product B. This will make it maximize profit</em>
Explanation:
<em>Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product with he highest contribution per unit of the scare resource</em>
Product Cont/unit machine hr /unit cont/hr Ranking
A 6-2 = $4 per unit 2 hours $2 per hour 2nd
B 5-2 = $3 per unit 1 hour $3 per hour 1st
<em>The company should use all of its limited machine hour to produce only product B. This will make it maximize profit</em>
<span>Purchased the patent for $170,000 in the beginning of 2011.Expected useful life is 10 years.Has a legal life of 17 years.Amortization expense = Cost/estimated useful life = $170,000/10 years = $17,000 per yea</span>
Answer:
Option B ⇒ The annual interest rate on Note A is 9.35% .
Explanation:
Note B has an accrued interest for six months during 2013: $220,000 x .08 x 6/12 = $8,800.
The remainder of the accrued interest, $7,200 ($16,000 - $8,800) was from Note A, which was held for seven months in 2013.
Therefore, we have the following: $132,000 x annual interest rate x 7/12 = $7,200.
Thus, the annual interest rate on Note A would be ($7,200/132,000) x 12/7 = 9.35%.
Option B ⇒ 9.35% is the correct answer.
Answer:
$148,500
Explanation:
Data given
Sales = $150,000
Rate of discount = 10
The computation of Ziff Corp. cash received from customer is shown below:-
Total collection = Sale × (1 - Rate of discount)
= $150,000 × (1 - 0.01)
= $150,000 × 0.99
= $148,500
Therefore for computing the total collection we simply applied the above formula.
The correct answer in this particular situation would be it increased.
