An inside director.
An inside director is someone who sits on the board of directors and is also an employee of the company (some board members are external non-employee advisors).
Answer:
(a)
TC(q) [before expansion] = Fixed Cost + Variable Cost
= 750,000 + 1.25q
TC(q) [after expansion] = (750,000 + 350,000) + 0.75q
= 1,100,000 + 0.75q
(b) (i) q = 600,000
TC(q) [before expansion] = 750,000 + (1.25 × 600,000)
= 750,000 + 750,000
= 1,500,000
TC(q) [after expansion] = 1,100,000 + (0.75 × 600,000)
= 1,100,000 + 450,000
= 1,550,000
Since expansion will increase total cost, profit will fall ceteris paribus. So firm should not expand.
(ii) q = 800,000
TC(q) [before expansion] = 750,000 + 1.25 × 800,000
= 750,000 + 1,000,000
= 1,750,000
TC(q) [after expansion] = 1,100,000 + (0.75 × 800,000)
= 1,100,000 + 600,000
= 1,700,000
Since expansion will decrease total cost, profit will rise ceteris paribus. So firm should expand.
Answer:
Job 93 Job 94 Job 95 Job 96
1. Labor Hours 120 300 145 50
2. Overhead applied rate $906 $2,400 $1,160 $400
Explanation:
Labor rate per hour = $18
Labor hours = Total Labor cost / rate per hour
Job 93 = $2,160 / $18 = 120 hours
Job 94 = $5,400 / $18 = 300 hours
Job 95 = $2,610 / $18 = 145 hours
Job 96 = $900 / $18 = 50 hours
Overhead applied rate = Labor Hours x overhead applied rate
Job 93 = 120 x $8 = $960
Job 94 = 300 x $8 = $2,400
Job 95 = 145 x $8 = $1,160
Job 96 = 50 x $8 = $400
Answer:
Alpine West, Inc.
a. When Alpine West, Inc. should recognize revenue from the sale of its season passes evenly over five months from December to April when the passes are put to use.
b. General Journal for
November 6:
Debit Cash Account $460
Credit Deferred Revenue $460
To record the purchase of a season ticket or pass by Jake Lawson.
December 31:
Debit Deferred Revenue $92
Credit Service Revenue $92
To record the ski service consumed by Jake Lawson for December.
c. In Alpine West, Inc.'s income statement and balance for 2013, the following amounts will be included in relation to the sale of the season pass to Jake Lawson:
Income Statement: Service Revenue $92 and related costs.
Balance Sheet: Deferred Revenue (Liabilities side) $368 ($460 - 92).
Explanation:
Alpine West, Inc. will make the above entries in accordance with the accrual concept and matching principle of generally accepted accounting principles. These require that revenue, income, and expenses related to a period must be accrued for that period whether actually received / paid or not. It also means that the costs incurred for any revenue generated must be matched to the revenue and vice versa for that particular period.
<span>Among the activities in the value chain, assembly requires skilled labor and R&D requires unskilled labor. So it's C. </span><span>skilled; unskilled </span>
