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krok68 [10]
3 years ago
10

Indi and Indrani are sisters who own a software development company. Demand has been increasing for their products and services

and the sisters are contemplating whether to open up a satellite office in Austin. They estimate it would add $7 million in expenses and a profit of $12.5 million in total over the next 5 years (all other things equal). Indi and Indrani decide
Business
1 answer:
Alexandra [31]3 years ago
4 0

Answer:

open an new office because the expected marginal benefit ($12.5 million over 5 years) is greater than the estimated marginal cost ($7 million)

Explanation:

The computation is shown below;

Given that

Total marginal benefit = 12.5 million

And, the Total marginal cost = 7 million

Based on the above information

We can see that the new office should be opened as the marginal benefit would be more than the marginal cost

Therefore the first option is correct

And, the rest of the options would be incorrect

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The answer is human resource.

Explanation:

I hope this helps!

3 0
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Fox Corp. failed to accrue warranty costs of $150,000 in its December 31, 20x2, financial statements. In addition, a $130,000 ch
faust18 [17]

Answer:

$150,000

Explanation:

$150,000

The failure to accrue warranty expense is an accounting error. It gives rise to a Prior period adjustment in the year of discovery (20x3).

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8 0
2 years ago
On January 1, Year 1, Price Co. issued $190,000 of five-year, 6 percent bonds at 96½. Interest is payable annually on December 3
Tasya [4]

Answer:

a) Cash received = $183,350

b) Interest expense = $12,730

c) Carrying value = $186,010

Explanation:

As per the data given in the question,

a) Face value of bond = $190,000

Issued at =0.965

Cash received = $190,000 × 0.965

= $183,350

b) Discount on bonds payable = $190,000 - $183,350

=$6,650

Annual amortization of discount on bonds payable =$6,650÷5

= $1,330

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Interest expenses = $11,400+$1,330

= $12,730

c)

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= $186,010

6 0
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anyanavicka [17]

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So as per the given statement, the statement is true

hence, the option a is correct

8 0
2 years ago
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