Answer:
$55,000
Explanation:
Data provided in the question:
Income in 2016 = $50,000
Nominal income in 2017 = $70,000
CPI in 2016 = 100
CPI in 2017 = 110
Now,
Purchasing power in 2017 = [ CPI of 2017 ÷ CPI of 2016 ] × Income in 2016
or
Purchasing power = [ 110 ÷ 100 ] × $50,000
or
Purchasing power = 1.1 × $50,000
or
Purchasing power = $55,000
The computation follows:
1. Solve first for the variable cost per unit.
Direct materials $ 6.00
<span>Direct labor $ 3.50
</span>
<span>Variable manufacturing overhead $ 1.50
</span>
<span>Sales commissions $ 1.00
</span>
<span>Variable administrative expense $ 0.50
</span>
<span>= $12.50 variable cost per unit
2. Then deduct the selling price to the variable cost per unit, to get the contribution margin.
</span><span>22 - 12.50 = $9.50 CM per unit</span>
Answer:
c.$28,800
Explanation:
Depreciation of the asset is calculated using the following formula:
Depreciation=Cost of Asset*Depreciation percentage for specific year
Keeping in mind the above formula, depreciation can be calculated as follow:
Cost of Asset=$150,000
Depreciation for year 1=150,000*0.20=$30,000
Depreciation for year 2=150,000*0.32=$48,000
Depreciation for year 3=150,000*0.192=$28,800
Therefore, the answer is c.$28,800
The definition of liquidity is how easily an investment can be exchanged for cash. Hope this helps!
Freedom of ownership is part of the government and the public sector business environment.
<u>Explanation:</u>
Freedom of ownership or a sharing vision offers a number of opportunities in the business environment. It allows the government to control the costs, generate the economies of scale and bargain costs down internally.
The freedom of ownership permits access to complex, specialized skills that can not be sourced locally. So this allows the government sector or the public sector environment to run the business successfully and to run it efficiently.
