Answer:
the relevant cost to make is $44.35
Explanation:
given data
Direct material = $ 8.10
Direct labor = 24.10
Overhead = 40.50
Total product cost per unit = $ 72.70
Cost of purchase = $42.35
solution
we know here that 70% of overhead cost is unavoidable
so we can say that it will not be considered for decision making
so here Cost of manufacturing will be
Cost of manufacturing = $8.10 + $24.10 + ( 30% of $40.50 )
Cost of manufacturing = $44.35
and
Cost of purchase is = $42.35
so here we can say the relevant cost to make is $44.35
Answer:
The answer is D. $3,750
Explanation:
This is an unearned revenue because the fee covers a service that will be rendered for a period of 12months(a year).
Unearned revenue is categorized as a liability because the customer has not fully exercised all its services/benefits.
So as this magazine is delivered monthly, this unearned subscription revenue decreases and revenue increases.
To calculate what will be earned monthly:
$15,000/12months
=$1,250.
So For January - $1,250
February- $1,250
March -. $1,250
So for the first quarter(January to March), $3,750 will be recognized as revenue while the unearned subscription revenue decrease by $3,750.
Alternatively, since 3 months make a quarter and we have 4 quarters in a year, it can be calculated as:
$15,000/4
$3,750.
Therefore, subscription revenue of $3,750 will be recognized every quarter.
Answer:
Ans. He should pay $4,781.47 for this bond.
Explanation:
Hi, all we have to do is to bring to present value $5,500 at 2% per year compounded continuously, from year 7.
We have to use the following formula.
Where:
r = the compounded continuusly compounded rate
t = time to its maturity
It should look like this.
So, the fair price to pay for this bond is $4,781.47
Best of luck.
One single payment of money, opposed to a an annuity. (a series of payments made over time)
Answer:
The correct answer is the option 3: AS shifts right and price level would increase.
Explanation:
To begin with, the <em>Aggregate Supply Curve</em> is the total amount of goods and services that the suppliers are willing and able to offer at a certain price level given and at a certain period of time. If the costs of the sellers increases then that would mean that they would try to obtain more profits so that would implicate in an increase in the amount of quantity offered by them. So that means that the aggregate supply curve would shift to the right and the price level would increase as the sellers would try to earn more profits so that they could cover all the new costs given by the government.
