Answer:
the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per day.
Explanation:
The costs of producing the 2000 units per day will be lower due to the following reason:
<em>Economies of scale.</em> The company will enjoy the benefits associated with large scale productions. When purchasing raw materials, the company will be a position to bargain for better discounts. The production cost is spread among finished products. A large production keeps the cost per item low.
<em>Some fixed costs may not change</em>. By adding a new plant, the company will increase production activities. Variable costs will increase, but some fixed costs are likely to remain the same. Administrative cost, top management salaries will not be affected. It means a larger number of finished used will absorb the fixed cost.
<em>Efficient machines</em>: The company has invested in new and more efficient machines. Efficiency implies the use of less labor, less power, and faster production. The result is a lower cost of production.
Answer:
The total income tax expense for 2019 =152.000. Is not available in the options given by the exercise.
Explanation:
- Tax on insurance expense deductible for accounting purposes in 2019= 70000*40%=28.000
- Income tax expense for 2019 = 180.000-28.000=152.000
Answer:
Date Accounts Title and Explanation Debit Credit
Dec 31 Insurance Expense $5,000
[($20000/12) x 3]
Prepaid Insurance $5,000
(To record insurance expense)
Dec 31 Interest Receivable $720
[($18000 x 8%)/12 x 6]
Interest Income $720
(To record accrual interest income)
Dec 31 Depreciation Expense $13,600
Accumulated Depreciation $13,600
-Equipment
(To record depreciation expense)
Answer:
should choose option a
Explanation:
option a)
annuity due, 31 payments of $180,000 per year, 6.25% discount rate
Present value = $180,000 x 14.40432 (PV annuity due factor, 6.25%, 31 periods) = $2,592,726
option b)
$500,000 today + ordinary annuity, 30 periods, 6.25%, $144,000
present value = $500,000 + ($144,000 x 13.40432 [PV annuity factor, 6.25%, 30 periods)] = $2,430,222
I think the statement that best describes the main cause of the 2008 housing market crash is : many people could not make home payments during a weak economy
That period was a period of recession and it cause the price of the house keep dropping
hope this helps