Answer:
d) partly a variable cost and partly a fixed cost.
Explanation:
CVP income statement is also known as cost volume profit income statement, it is generally a product of CVP analysis and it include five elements:
- Price of products.
- Volume of activity.
- Variable cost per unit.
- Total fixed cost.
- Mix of product sold.
CVP analysis are conducted to know how changes in cost and volume would impact company´s operating income and net income. It require all the cost of company should be segregated into variable and fixed cost. It also calculate contribution margin, which help to identify the profit of company before deducting fixed cost.
Answer:
SEP IRA
Explanation:
A SEP IRA means , a Simplified Employee Pension IRA, which is easier to set up and administrate than most other pension plans.
The Simplified Employee Pension IRA allows the employer to make a deductible contribution of a maximum of 25% of an employee's income (20% effective rate), capped at $54,000 in 2017.
The Simplified Employee Pension IRA has a key advantage which is that, it allows the employer to vary the contribution percentage each year .
In this case, a smaller business should make use of Simplified Employee Pension IRA, because it is easier to set up and have other benefits that are okay for such type of business.
Answer: $1.43
Explanation:
To solve this, we would use the put call parity. We then calculate the value of the out which will be:
= $7.14 + $15/(1 + 5%) - $20
= $7.14 + $15/(1 + .05) - $20
= $7.14 + $15/(1.05) - $20
= $7.14 + $14.29 - $20
= $1.43
The price of an equivalent put option is $1.43
Answer:
The answer is: $18, 750
Explanation:
The double-declining-balance(DDB) method entails computing depreciation of an asset at an accelerated rate. This method is employed when the asset loses value quickly and is expected to generate more revenue at the earlier stages of its useful life. The depreciation is higher at the beginning and lower close to the end of the asset's useful life. The depreciation is computed as follows:
Depreciation = 2 * straight line depreciation percentage * Book value at the beginning of the period
Machine cost: $75, 000
Residual Value: $5, 000
Estimated Life: 4 years/18, 000 hours
Straight line depreciation percentage : 100/4 = 25%
Depreciation Year 1 on DDB = 2 * 25% * $75, 000
= $37, 500
Depreciation Year 2 on DDB = 2 * 25% * ($75, 000 -$37, 500)
= $18, 750
Answer:
COGS= $81,146.88
Explanation:
Giving the following information:
Your company has sales of $93,600 this year and the cost of goods sold of $64,700. You forecast sales to increase to $ 117, 400 next year.
First, we need to calculate the percentual participation of cost of goods sold:
%COGS= 64,700/93,600= 0.6912= 69.12%
<u>Now, using the same percentage, we calculate the cost of goods sold for the estimated new sales:</u>
COGS= 117,400*0.6912= $81,146.88
