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vladimir1956 [14]
3 years ago
6

Worthington Chandler Company purchased equipment for $12,000. Sales tax on the purchase was $800. Other costs incurred were frei

ght charges of $200, repairs of $350 for damage during installation, and installation costs of $225.
What is the cost of the equipment?
a. $12,000b. $12,800c. $13,225d. $13,575
Business
1 answer:
insens350 [35]3 years ago
3 0

Answer:

d. $13,575

Explanation:

The cost of the equipment includes all the cost incurred to bring the equipment to a state where it becomes available for use.

These costs are the cost of the equipment, sales tax, freight, repairs during installation and installation cost.

Therefore,

Cost of the equipment = $12,000 + $800 + $200 + $350 + $225

                                       = $13,575

The right option is d. $13,575.

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Answer:

<em>(A) Unit variable costs fluctuate and unit fixed costs remain constant.</em>

Explanation:

The <em>fixed costs</em> are the costs which have to be incurred always, irrespective of what the output produced is by the firm. For instance, a firm always has to charge depreciation on its fixed assets, pay salary to the premises staff and pay fixed salary to the managers for managing etc, irrespective of whatever output it produces.

<em>Variable costs</em> are the costs which vary with the level of output produced activity. For example, if more output is produced more will be the raw material payments, more will be the manufacturing related other expenses and more will be the wages paid to the labour etc and vice-versa.

Hence, thereby the per <em>unit variable costs fluctuate and unit fixed costs remain constant.</em>

 

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Donatello files a suit against erasmus. before going to trial, the parties meet, with their attorneys to represent them, to try
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The answer to the question is a form of out of court dispute resolution called negotiation.

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Answer:

Dr. Cash                          $2,842

Dr. Discount Expense    $58

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Explanation:

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