Answer:
$60,000 income tax benefit
Explanation:
Since Crimson Corp. had a loss from operations and sold the asset for a loss we know that they lost money with the asset and an income tax benefit was generated. To calculate the income tax benefit we need to add both losses: $40,000 (operation) + $160,000 (sale) = $200,000 in total losses.
$200,000 x 30% = $60,000 income tax benefit
Answer:
For both 10,000 units and 20,000 units, the best alternative is Vendor B
Explanation:
Using the information provided in the question, we can write the following:
Annual Volume of 10,000 units
Internal Alternative 1
Variable costs = 170,000 (we multiply the variable cost per unit by total units)
Fixed costs = 20,000
Total costs = 370,000
Internal Alternative 2
Variable costs = 140,000
Fixed costs = 240,000
Total costs = 380,000
Vendor A
Total cost = 200,000 (we simply multiply the price by the quantity)
Vendor B
Total cost = 180,000
Vendor C
Total cost = 190,000
The cheapest option is Vendor B
Now for the 20,000 units:
Internal Alternative 1
Variable costs = 340,000
Fixed costs = 200,000
Total costs = 540,000
Internal Alternative 2
Variable costs = 280,000
Fixed costs = 240,000
Total costs = 520,000
Vendor A
Total cost = 400,000
Vendor B
Total cost = 360,000
Vendor C
Total cost = 380,000
Therefore, Vendor B is once again, the cheapest alternative.
<span>The cost of borrowing money is called the interest. Interest is what you pay to the loan company or lender when you borrow money from them. The interest is what they are charging when they give you money for a purchase now while you pay them back overtime. </span>
Answer:
Initial Cost = $180
Explanation:
Payback period estimates the time an investment projects resulting cash flows take to recover the initial amount o=invested in the project. A traditional payback period doesnot take present value into account and just focuses on the nominal recovery of the initial investment.
If a capital budgeting project provides inflows of $50 per year and the payback period is 3.6 years, the initial investment is:
3.6 = 50 + 50 + 50 + x
Where x = 0.6 of 50
and x = 0.6 * 50 = 30
Initial cost = 50 + 50 + 50 + 30 = $180
Demand is the quantity of a good or service for which a consumer is willing to buy and a company is willing to sell at a given price at a specific time. For the entire market, the demands for the buyers are summed to find the market demand.
