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Andrej [43]
3 years ago
12

When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of

output for $25. If the price of dynamite drops to $10, should Acme Dynamite continue to operate in the short run?
Business
1 answer:
DaniilM [7]3 years ago
7 0

Answer:

The firm will continue to produce in the short run.

Explanation:

Given the number of units produced by Acme Dynamite = 250 units.

The variable cost of producing the 250 units = $2000

The fixed cost = $500

The selling price = $25 per unit.

The new price after the fall in price = $10

Total revenue from the selling of 250 units = 250 × 10 = $2500

Since the revenue received is covering the variable cost and fixed cost. Thus, the firm will produce or continue to produce in the short run.

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Wizard Co. purchased two machines for $250,000 each on January 2, 2005. The machines were put into use immediately. Machine A ha
faltersainse [42]

Answer:

75,000

Explanation:

The straight-linedepreciation is calculate by dividing the acquisition value over the useful life

Machine A useful life is for 5 years

250,000 / 5 years = 50,000 per year

Machine B useful life is:

2 years in development project and then 8 years in a production division

total useful life for 10 years

250,000/ 10 years = 25,000

<u>Total development expense: </u>

machine A depreciation 50,000  + machine B depreciation 25,000 = 75,000

development expense 75,000

      acc depreciation machine A   50,000

      acc depreciation machine B   25,000

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2 years ago
When Ben left the corporate rat race to start his own pottery business, he used some of his retirement savings to finance the bu
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When Ben left the corporate rat race to start his own pottery business, he used some of his retirement savings to finance the business. This practice is known as bootstrapping.

<h3>What is bootstrapping?</h3>

Bootstrapping is a word used in business to describe the process of starting and growing a firm utilizing solely available resources, such as personal funds, personal computing equipment, and garage space.

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5 0
1 year ago
What types of questions can be answered by analzying financial statements?
NARA [144]
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2 years ago
Read 2 more answers
Kai operates the Surf Shop in Laie, Hawaii, which designs, manufacturers, and customizes surf boards. Hawaii has a hypothetical
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Answer:

Explanation:

According to the Kai surf shop in Laie, Hawaii, below is the computation of sales and use tax of surf shop that must collect or remit.

A.

Kai doesn't have a sales tax nexus with Utah, therefore it will not have any sales tax liability. Instead, Kalani will have a tax liability in Utah that will be $63($1000 x 6.85%).

B.

kai will have a tax liability of $83($2000 x 4.166%) Also, Nick will have use tax liability of $87[($2000 x (9% - 4.166%)].

C.

Kai doesn't have a sales tax nexus with Michigan, therefore it will not have sales tax liability. Instead, Jim will have a use tax liability in Michigan will be $140($2000 x 6%)

D.

Sales and use tax is not imposed on sale of services. Therefore, neither Kai nor Scott will have any sales or use tax liability.

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3 years ago
Assume that the reserve requirement is 25%. If the Federal Reserve sells $120 million in government securities to the general pu
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