Answer:
For 8,500 units, proposal A provides a higher income ($3,000).
Explanation:
Giving the following information:
Proposal A:
Fixed cost= $50,000
Unitary cost= $12
Proposal B:
Fixed cost= $70,000
Unitary cost= $10
<u>We need to choose the proposal with the higher income if 8,500 units are produced.</u>
Proposal A:
Net income= 8,500*(20 - 12) - 50,000
Net income= $18,000
Proposal B:
Net income= 8,500*(20 - 10) - 70,000
Net income= $15,000
For 8,500 units, proposal A provides a higher income ($3,000).
Answer:
The Journal entry is as follows:
On July 1,
Cash A/c Dr. $439,200
Finance charge Expense A/c Dr. $10,800
To Financing arrangement A/c $450,000
(To record the amount of borrowings)
Workings:
Finance charge expense = ($600,000 × 1.8%)
= $10,800
So, cash account = $450,000 - $10,800
= $439,200
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Answer: Preventative maintenance and also it is needed for maintaining the value of the property
Explanation:
According to the given question, the process of replacing all the lighting system in the apartment and also re-coating, cleaning all the building is one of the process of preventive maintenance as it helps in regularly maintain and clean the building the so that the value of the property remain the same.
The main objective of the preventive maintenance is that it helps in improve the overall performance and taking various types of safety measures for improving the condition of the property.
The given jobs is considering as the preventive maintenance for the purpose of maintaining the actual value of the apartment. Therefore, The given answer is correct.
