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Dennis_Churaev [7]
3 years ago
8

Indiana Co. began a construction project in 2021 with a contract price of $163 million to be received when the project is comple

ted in 2023. During 2021, Indiana incurred $32 million of costs and estimates an additional $86 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed. In 2022, Indiana incurred additional costs of $59 million and estimated an additional $37 million in costs to complete the project. Indiana (Do not round your percentage calculated): Multiple Choice Recognized $35.00 million gross profit on the project in 2022. Recognized $33.50 million gross profit on the project in 2022. Recognized $12.68 million gross profit on the project in 2022. Recognized $10.00 million gross profit on the project in 2022.
Business
1 answer:
iragen [17]3 years ago
8 0

Answer: Recognized $12.68 million gross profit on the project in 2022

Explanation:

Firstly we would need to ascertain the percentage of completion in 2022. We will do this by using the costs.

The cost incurred till date is,

= $32 million (incurred in 2021) + $59 million (incurred in 2022)

= $91 million. (1)

A further $37 million is estimated to remain in costs by project completion so the total cost would be,

= $91 million + 37 million

= $128 million is the total cost to be incurred. (2)

Dividing (1) by (2) to find out how much costs have been incurred vs how much is life we have,

= 91 / 128

= 0.7109

= 71 %

71 % of the project has been completed.

We will now find out the revenue for that very year using the percentage of the project completed.

The Total Revenue is $163 million so we will take 71% of that,

= 0.71(163)

= $115.73 million can be recognized as revenue TILL DATE. (3)

To find out the Revenue for the year then we can deduct the revenue of the previous year from the Revenue till date to find out the revenue for 2022.

But first we need to find the revenue of 2021 using the same method we used to calculate the Revenue this far

= 32 million / (32 + 86 million) * 163 million

= $44.01 million in revenue in 2021 (4)

Subtracting (4) from (3) to get the revenue for 2022 we have,

= 115.73 - 44.01

= $71.72 million is therefore the revenue for the year 2022

Calculating the gross profit for the year 2022 then we can subtract the cost in 2022 from the revenue for 2022.

= 71.72 million - 59 million

= $12.72 million

The answer we got is off by $0.04 from option C so we will pick Option C as the correct answer with the discrepancy going down to rounding off errors in the Intermediate Calculation.

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3 years ago
True or False: A tax cut is less likely to change the composition of labor demand than a government spending increase.
MA_775_DIABLO [31]

Answer:

True

Explanation:

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3 years ago
A privately owned summer camp for youngsters has the following data for a 12-week session: Charge per camper $480 per week Fixed
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Answer:

a) (480-320)X - 192,000

where:

X is the camper amount which is an integer between;

0 < X <200

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d)  marginal cost at 80% capacity: 320

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Explanation:

b) contribution per camper:

480 - 320 = 160 dollars

fixed cost 192,000

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200 camper x 12 weeks x 80% x 160 contribution  =

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d) the marginal cost per camper would be the 320 cost per week as the fixed cost are incurrent already thus, each new camper cost is only their variable cost.

the average cost per camper will be:

200 camper x 12 weeks x 80% = 1,920 campers

the average cost would be the sum of variable and fixed cost:

(1,920 x 320  + 192,000) / 1,920 = <em>420‬</em>

<em />

we cna verify this:

(480 - 420) x 1,920  = 115.200‬

we get the same income as before thus, the calculation are correct.

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3 years ago
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Explanation:

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3 years ago
Use the midpoint method when applicable to calculate the price elasticity of demand.
Neko [114]

Answer:

Follows are the solution to the given points:

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\text{Price elasticity} =  \frac{\frac{15000-20000}{(\frac{15000+20000}{2})}}{\frac{4-3}{(4+\frac{3}{2})}}

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U.S. economic theory states that the elasticity of fuel demand is 0.5 because prices would be less than 1 and so are non-elastic.

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3 years ago
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