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3 years ago

8

A business initially sells their product to customers for $50. They find that many people are buying their product so they rise

the price to $100. Which of the following is a likely response that they will receive from the customers?

1 answer:

pav-90 [236]3 years ago

8 0

Answer: It will reduce in demand

Explanation: If you raise a price customers are less likely to buy it when it’s at a higher price

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2. On January 2, 2017, heavy equipment costing $800,000 was purchased. The equipment had a life of 5 years and no salvage value.

Naddika [18.5K]

Answer:

The solution to the given problem is done below.

Explanation:

(a) Depreciation

for Financial Depreciation for Temporary

Year Reporting Purposes Tax Purposes Difference

2017 $160,000 $264,000 (104,000)

2018 $160,000 $360,000 (200,000)

2019 $160,000 $120,000 40,000

2020 $160,000 $56,000 104,000

2021 $160,000 0 $160,000

$800,000 $800,000 0

(b) 2018 2019 2020 2021 Total

Future taxable

amounts:

Depreciation $(200,000) $40,000 104,000 $160,000 $104,000

Deferred tax liability: $104,000 × 40% = $41,600 at the end of 2017.

8 0

3 years ago

Exercise 177 Kirk Company issued a $3,500,000, 10%, 10-year mortgage note payable to finance the construction of a building at D

denis-greek [22]

Answer:

The annual installment payment consists of both interest payments and principal repayment.

The interest is based on the remaining balance which is $3,500,000 in this instance:

= 10% * 3,500,000

= $350,000

Principal repayment = 569,509 - 350,000

= $219,509

a.

Date Account Titles and Explanation Debit Credit

Dec, 31 2020 Cash $569,609

Mortgage Payment $569,609

Date Account Titles and Explanation Debit Credit

Dec, 31 2021 Interest Expense $350,000

Mortgage Payable $219,509

Cash $569,609

7 0

3 years ago

A restaurant offers a catering service which costs $19.50 per person with a $91.75 service charge. For parties of 70 or more peo

Mariulka [41]

Answer:

1. T=19.5n+91.75, where n<70

2. T=15n+45, where n≥70

Explanation:

1. The first linear function can be expressed as;

Total cost of catering services=(Cost per person×number of people, n)+Service charge

where;

Total cost of catering services=T

Cost per person=$19.50

Number of people=n

Service charge=$91.75

Replacing;

T=(19.5×n)+91.75

T=19.5n+91.75

The first equation: T=19.5n+91.75, where n<70

2. The second linear function can be expressed as;

Total cost of catering services=(Cost per person×number of people, n)+Service charge

where;

Total cost of catering services=T

Cost per person=$15

Number of people=n

Service charge=$45

Replacing;

T=(15×n)+45

T=15n+45

The second equation: T=15n+45, where n≥70

4 0

3 years ago

Macee Department Store has three departments, and it conducts advertising campaigns that benefit all departments. Advertising co

Deffense [45]

Answer:

(i) $34,200

(ii) $55,860

(iii) $23,960

Explanation:

Total sales = $ 240,000 + $392,000 + $168,000

= $800,000

Department 1:

sales = $240,000

Percent of total = sales ÷ Total sales

= $240,000 ÷ $800,000

= 0.3

Allocated amount = % of total × advertising to allocate

= 0.3 × $114,000

= $34,200

Department 2:

sales = $392,000

Percent of total = sales ÷ Total sales

= $392,000 ÷ $800,000

= 0.49

Allocated amount = % of total × advertising to allocate

= 0.49 × $114,000

= $55,860

Department 3:

sales = $168,000

Percent of total = sales ÷ Total sales

= $168,000 ÷ $800,000

= 0.21

Allocated amount = % of total × advertising to allocate

= 0.21 × $114,000

= $23,940

3 0

3 years ago

You have been running a successful art and framing shop for three years. You have decided to allow others to use your business n

jeka94

<h3><u>Answer -</u></h3>

If one has been running a successful art and framing shop for three years and has decided to allow others to use his/her business name materials and methods in operating their own business for a fee. It may be called as a franchise agreement.

<h3><u>Explanation -</u></h3>

A franchise agreement allows the business owner to use the licensor's brand and method of doing business. The franchisor is the original or existing business owner who allows the other one to use his/her business name materials and methods in operating their own business.

A certain amount of fees is to be paid by the franchisee that may be called in the layman’s language as the licensee, who is supposed to pay the fee to the licensor (franchisor) are exchanged for the rights to use the franchisor's name is for a specific number of years.

3 0

3 years ago