Answer:
<u>Part 1</u> There will be a disadvantage for 30,000 as there are allocated cost into product X
<u>Part 2 </u>TRUE
As performing the order will not renounce to selling in the local market. When the order comiptes with the normal capacity(there is no idlbe capacity to use) it will have as opportunity cost the contribution if sold in the local market.
Explanation:
![\left[\begin{array}{cccc} &$Current&$Discontinued&$Differential\\$Revenues&400,000&&-400,000\\$variables&-320,000&&320,000\\$Contribution&80,000&&-80,000\\$avoidable fixed cost&-50,000&&50,000\\$allocate fixed&-70,000&-70,000&\\$Result&-40,000&-70,000&-30,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%20%26%24Current%26%24Discontinued%26%24Differential%5C%5C%24Revenues%26400%2C000%26%26-400%2C000%5C%5C%24variables%26-320%2C000%26%26320%2C000%5C%5C%24Contribution%2680%2C000%26%26-80%2C000%5C%5C%24avoidable%20fixed%20cost%26-50%2C000%26%2650%2C000%5C%5C%24allocate%20fixed%26-70%2C000%26-70%2C000%26%5C%5C%24Result%26-40%2C000%26-70%2C000%26-30%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Revenue 10,000 x 40 = 400,000
Variable Cost: 100,000 x 32 = 320,000
Avoidable: 120,000 - 70,000 = 50,000
Answer:
1.
April 30
No entry required
This is because Cruz's attorney is certain it is remote that Cruz will lose this lawsuit.
June 30
DR Warranty Expense $14,400
CR Warranty Liability $14,400
Working = 360,000 * 4%
= $14,400
July 28
DR Warranty Liability $6,400
CR Cash $6,400
September 30
DR Lawsuit Loss A/c $150,000
CR Lawsuit Loss Liability $150,000
December 21
DR Warranty Expense $20,000
DR Warranty Liability $20,000
Workings ( Original question says 4%.)
= 4% * 500,000
= $20,000
2. Balance on Estimated Warranty Liability Account
June 30 14,400
July 28 (6,400) -
Dec 21 20,000 +
= $28,000 Credit
Private Placement and Investment Banking Process, are the two ways that a company can issue new securities and thereby raise capital in the primary market
<h3>What is Primary Market?</h3>
The primary market is the area of the capital market where securities are issued and sold to buyers directly by the issuer, who then receives the proceeds.
Companies, governments, or public sector organizations can raise money in a primary market by issuing bonds, and corporations can do the same by selling new stock in an IPO (IPO). A financing syndicate of securities dealers, investment bank, or underwriter is frequently used for this.
Securities are issued by firms to investors directly in the primary market. Either a further public offering (FPO) or an IPO is used to issue securities (FPO). Through an initial public offering (IPO), a business can raise capital from investors and go public.
A business can raise money on the primary market by selling preference shares. Securities, equity, and debt
To know more about Primary markets, visit:
brainly.com/question/8311014
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