Answer:
The book value of the machine at the end of year 2 is $35,000
Explanation:
Straight line method depreciates the asset on its useful life after deducting salvage value from the cost of the asset.
Depreciation per year = ( Cost of Machine - Residual Value ) / Useful life
Depreciation per year = ( $42,000 - $7,000 ) / 10 years
Depreciation per year = $3,500 per year
Book value of machine at the end of year 2 = $42,000 - ( $3,500 x 2 )
Book value of machine at the end of year 2 = $42,000 - $7,000
Book value of machine at the end of year 2 = $35,000
This question is a bit tricky to answer because it does not state how often interest rate is applied so lets say for the simple 5% interest rate the rate of interest was calculated after 2 years you would pay a total interest of $15 since interest was only calculated once but for the 3% calculating every year with compound it would be a total of 18.27 dollars in interest but then you would have to calculate the 5% simple interest the same way which would total to $30 if calculated once a year being more than the 3% compound. But lets say interest is calculated once a month your total for the 5% simple interest would be $360 dollars interest for those 2 years and the 3% compound would be $406.97 dollars in interest. So over all the less amount of times interest compounds the less interest there is making it more worth than the simple but if the compounding occurs more frequently the simple 5% interest is more worth it. In this situation I think it might just be yearly interest which makes the 3% compound more worth taking for this short amount of time.
Answer:
Increase by $37,100.
It will accept any time the price is above $43 with the condition it will not incur in additional fixed cost.
$63. is the sales price that generates 106,000 dollar of operating income
Explanation:
As the units will not inccur in any additional fixed cost we should check for the contribution margin this units will provide:
50 dollars - 43 dollar of variable cost = 7 dollars
5,300 saws x $7 = 37,100
The sales reveues will increase by that amount.
(5,300 x $43 dollars each in cost + 106,000 contribution )/5,300 = sales price
sales price = 63
Answer: Top Manager
Explanation:
Top manager are managers at or near the upper levels of the organization structure who have the responsible for making organization wide decisions and establishing the plans and goals that affect the entire organization.
Top managers typically have titles such as executive vice president, president, managing director, chief operating officer, or chief executive officer.
