Answer:
$3,160
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
.
Given that Williams Company purchased a machine costing $28,300 and is depreciating it over a 10-year estimated useful life with a residual value of $3,300,
Annual depreciation
= ($28,300 - $3,300)/10
= $2,500
At the beginning of the eighth year, a major overhaul on it was completed at a cost of $8,300,
Net book value at the beginning of the eighth year (before overhauling)
= $28,300 - 7($2,500)
= $10,800
Capitalizing the overhaul cost,
Net book value at the beginning of the eighth year (after overhauling)
= $10,800 + $8,300
= $19,100
Given that the total estimated useful life was changed to 12 years with the residual value unchanged,
Depreciation for the eighth year
= ($19,100 - $3,300)/5
= $15,800/5
= $3,160
Answer:
Contribution margin per unit = Sales price per unit – Variable cost per unit
$2 - $1.20=$0.80
The contribution margin per package is $ 0.80.
Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit $85,000 + $22,000/0.80 = 133,750 packages
Contribution margin per package = $2 - $1.00 = $1.00
Breakeven sales in units = Fixed expenses + Operating income ) / Contribution margin per unit
$100,000 + $22,000/$1= 122,000 packages
The firm will have to sell 122,000 packages to generate $22,000 of operating income. Socks unlimited would have to sell 11,750 less packages of socks to earn $22,000 of operating income. The increase in fixed costs was completely offset by the decrease in variable costs at the prior target profit volume of sales. Therefore, the firm will need to sell less units in order to achieve its target profit level.
Answer:
Answer is option A, i.e. systematic sampling.
Explanation:
Systematic sampling is the type of probability sampling method of selection of samples out of the given group of homogenous nature. In this method, every Kth sample is selected until the required amount is obtained. Here, Chrysler selects every 16th van until he is successful in obtaining the 80 vans. Thus, Chrysler is using a systematic sampling method here.
Answer:
We see that Prog A will give an annual CF of 75%*$6000 = $4500
Prog B will give annual CF of 95%*$6000 = $5700
Disc Rate Kd = 20%
So PV of Annuity of $1 for 5 yrs with Kd = 20% is 2.9906
So NPV of Prog A = CF0+CF1+ ....+Cf5 = -12000+2.9906*4500 = $1,458
So NPV of Prog B= CF0+CF1+ ....+Cf5 = -20000+2.9906*5700 = $(2,954)
So Prog A is more effective as it gives a Positive NPV
Answer:
Reconciled balance for both bank and cheque book statement is $2,572.51
Explanation:
To find the reconciled balance, we start of with reconciling the bank statement with cheque book statement
Bank statement
Balance as per bank statement
$2009.32
Add: deposits in transits
$1,197.87
Less: outstanding checks
($310.18 + $324.50)
Reconciled balance
$2,572.51
Cheque book
Balance as per cheque book
$2,469.31
Add: interest earned
$109.20
Less: service charge
($6)
Reconciled balance
$2,572.51.
