What’s the Acronym? (A acronym is like LOL, or OMG)
Answer:
Refer To The attached screen shot. It contains the Income Statement Prepared under Absorption Costing.
Explanation:
Absorption Costing assumes that the Manufacturing Costs include Direct Material, Direct Labor, Variable Overhead, and Fixed Overhead. Whereas, Selling and Administrative Expenses are classified as period Costs. These period costs are recognized in the period in which they are incurred. On the other hand, the manufacturing costs are recognized when the goods on which the costs were incurred are sold. That's why we don't recognize $78,000 as a Fixed Overhead because these overhead costs were incurred to produce 6,000 rackets. We have to calculate the fixed overhead cost per unit and multiply it with the units sold.
I hope I made it clear. If you have any queries, feel free to contact me.
Thanks.
Answer:
b) -$700.
Explanation:
The economic profit or loss will be:
economic result = revenue - total cost
<u>Where:</u>
fixed cost + variable cost = total cost
400 + 600 = 1,000
revenue = units x selling price per unit
100 units x $3 = $300
economic result = revenue - total cost = 300 - 1,000 = -700
The company is on the optimal level, marginal revenue = marginal cost at 100 units of output.
But, it is not selling at the correct price. It should sale at a higher price.
<span>For the amount invested in the 20 year annuity immediate,
the return will be;
r/(1 - (1+r)^-n) = 0.05/(1- 1.05^-20)
= 0.0802425872
= 8.02425872%
Now, return on perpetuity-immediate = 5%
So, 5% + </span>8.02425872% = 13.02425872<span>
for equal returns from both investments,
X = 5/(13.02425872) x 640,000
= $245,695.365
= $ 245,695.36 </span>
Answer:
B. Personal credit if it is a personal loan
D. If the individual applies to start a business
Explanation:
Typically Financial institutions extend loans based on "credit worthiness" (or credit score) of the individual and can be extended based on whether the individual has an asset to secure the loan. Lack of an asset can have a negative result (dependent upon the amount requested) if the loan request is for a large amount of money.
