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2 years ago

The following data pertains to activity and maintenance costs for two recent years:

Business

1 answer:

Aleksandr-060686 [28]2 years ago

6 0

Answer:

Y= 6000 + 0.75X

Explanation:

High and low cost technique

Using the a high and low technique, total cost can be analysed and separated into fixed and variable portion. This analysis helps in the forecast of cost and therefore important for the preparation of budget.

<em>Variable cost of maintenance</em>

= (Cost at high activity - Cost at low activity)/ (high activity - low activity)

VC per act. = ( $15000 - $12000)/(12,000-8000)

= $0.75 per activity

<em>Fixed cost of maintenance</em>

= Total cost at high activity - (VC per act × high activity)

= $15,000 - ( $0.75 × 12,000)

= $6,000

The cost formula will be:

Y= 6000 + 0.75X

Where Y = maintenance cost, X= level of activity

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On January 1, James Industries leased equipment to a customer for a five-year period, at which time possession of the leased ass

nexus9112 [7]

Answer:

James Industries

The amount of the annual lease payments is:

= $207,878.86.

Explanation:

a) Data and Calculations:

Cost of equipment = $830,000

Normal sales price = $830,000

Residual value after 5 years = $200,000

Interest rate = 8%

Lease period = 5 years

From an online financial calculator:

Loan Amount 830000

Loan Term 5 years

Interest Rate 8

Results:

Payment Every Year $207,878.86

Total of 5 Payments $1,039,394.29

Total Interest $209,394.29

Lease Payment Schedule:

Period PV PMT Interest FV

1 $830,000.00 $-207,878.86 $66,400.00 $-688,521.14

2 $688,521.14 $-207,878.86 $55,081.69 $-535,723.98

3 $535,723.98 $-207,878.86 $42,857.92 $-370,703.04

4 $370,703.04 $-207,878.86 $29,656.24 $-192,480.42

5 $192,480.42 $-207,878.86 $15,398.43 $0.00

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3 years ago

In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire wor

9966 [12]

Answer:

(B) the macroeconomy

Explanation:

The condition of the macroeconomy would exert the most influence of a firm's decision to hire more workers. As economic growth increases and demand grows, the firm is likely to hire more workers to meet increasing demand for its goods. On the other hand, in an economic recession, the firm is likely to hire less and even lay off its existing workers as demand for its goods reduces.

Option A is incorrect as a firm would not hire more workers even at low wage levels if the economy is in a recession. Option C is incorrect as the level of a firm's income would likely not be considered in its hiring decision if demand for its goods was very high. Option D is incorrect as the household income would likely not be considered by the firm in its hiring decision.

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3 years ago

Powers Corporation has provided the following information for its most recent month of operation: sales $16,000; ending inventor

Elza [17]

Answer:

The beginning inventory was $2000.

Explanation:

First, we need to calculate the Cost of Goods sold. The cost of Goods sold is the difference between the Sales and the gross profit. Thus, the cost of goods sold is 16000 - 10000 = $6000

The value of the beginning inventory for the period can be calculated by using the Cost of Goods sold formula. The cost of goods sold is calculated as:

Cost of goods sold = Beginning inventory + Purchases - Closing Inventory

Plugging in the available figures in the formula,

6000 = Beginning Inventory + 8000 - 4000

6000 = Beginning inventory + 4000

6000 - 4000 = Beginning Inventory

Beginning Inventory = $2000

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2 years ago

Who is your favorite character in the walking dead? mine is rick

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Answer:

do you watch riverdale?

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Explanation:

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3 years ago

Read 2 more answers

Some countries have high minimum wages and require a lengthy and costly process to get permission to open a business Select one:

Pani-rosa [81]

Answer:

b. Reducing the minimum wage and the time and cost to open a business would shift the long-run aggregate supply curve to the right

Explanation:

Minimum wage is a wage set by the government, to pay for laborers. Wages below this is illegal. Wages are also a major cost to any firm. When they have been reduced, cost of production is likely to fall. Cost of production is a factor affecting supply. When cost of production falls, supply shifts right.

This is explained as that when cost of production falls, businesses can now make higher profits. This acts as a motivation for many other firms to also enter into the market. Therefore, supply is likely to rise in the long-run, shifting the supply curve to the right.

Time and cost to open a business is another factor affecting supply. When the time and cost is high, it discourages new firms because they do not want to undergo the hassle of submitting many legal documents or may not have enough funds to pay for all the costs. However, when the cost and time taken falls, more firms will be willing and able to enter into the market. Thus, the supply curve shifts right in the long run, increasing quantity supplied.

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2 years ago