Answer:
a. $26,720
Explanation:
Before computing the accumulated depreciation, first we have to compute the original cost of the equipment, after that the depreciation expense. The calculation is shown below:
Original cos t = Equipment purchase cost + freight charges + installment charges
= $68,000 + $2,800 + $8,000
= $78,800
Now the depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ estimated life in years
= ($78,800 - $12,000) ÷ 5 years
= $13,360
Now the accumulated depreciation is
= Depreciation expense × number of years
= $13,360 × 2 years
= $26,720
The firm will exit or leave the industry as its not making any profits.
<h3><u>CALCULATION OF THE PROFITS</u></h3>
According to the Question,
The firm produces at P = MC
Where we know,
Q = 55 units
P = $4.78
ATC or Average Total Cost = 6.76
AVC or Average Valuable Cost = 3
P > AVC so the firm produces to minimize losses at the MC = P.
Profit = ( P - ATC ) × Q
=( 4.78 - 6.76 ) × 55
= - 108.9
The profit is - 108.9 dollars per minute.
As the firm in the industry is making losses ( a negative profit ) so it will exit the industry in the long run.
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Answer:
Nonoperating
Explanation:
The activities through which revenue and expenses occur which do not take part in the operations of business is consider as nonoperating.
Answer:
D. Buyer
Explanation:
The buyer is the one who is interested in purchasing the property and becoming the new owner. A walkthrough which involves inspecting the property and making sure everything has remained stated and is in order is done by the buyer who is interested in owning the property. A buyer can always demand for a walkthrough. The walk through gives the buyer time to inspect the property before closing.
Answer:
The correct answer is the option A: static budget (based on planned volume) and actual revenue or cost.
Explanation:
To begin with, the name of "Sales volume variance" refers to a method used in the business and accounting field with the main purpose of obtaining the comparison between the planned sales and the actual sales. It does it by stating that the difference between those two multiply by the budget price of the product will result in the variance itself. The goal of this method is to measure the sales performance and to see if there are no mathces with the expected revenues then the company has to take a lead and do something about it.