A bank receives a deposit for $50,000. If the bank has a 10 percent reserve

In the short run, the marginal cost of the first unit of output is $40, the average variable cost of producing three units of ou

ludmilkaskok [199]

Answer:

$24 is the marginal cost of producing the third unit of output.

Explanation:

We know that the average variable cost of producing 3 units is 32, if we multiply 32 by 3 we get the total variable cost of producing 3 units. So 96 is the total variable cost of producing 3 units. Now we know that the marginal cost of producing the firs unit is 40 and the second unit is 32 so we can subtract (32+40) from 96 to find the marginal cost of the third unit.

96-(32+40)=24

7 0

4 years ago

Sandy wants to persuade her audience that the high cost of daily and seasonal ski passes led to the largest decline in revenue t

victus00 [196]

Answer: argument from cause to effect

Explanation:

Arguments of Cause and Effect. or better still Claims of cause and effect are hypothesis which are supported the thought that one event usually controls or causes another. example from the question.

we all know that sometimes a rise in cost also can result in a decrease in sale or revenues because the case could also be. The reason for Colorado decline in revenue is as a results of visit sales thanks to high cost, and also the effect is that the decline in revenues generated.

3 0

4 years ago

A person with a master’s degree is most likely qualified for a career as

julsineya [31]

A master's degree is an academic degree awarded by universities or colleges. Maybe try looking up the requirements for the jobs to see what type of degree is needed. but I would guess B or C.

5 0

4 years ago

Read 2 more answers

Which of these statements is true about the audit opinion formulation process presented in this chapter? a. The audit opinion fo

lakkis [162]

Answer:

The answer is B. The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.

Explanation:

6 0

3 years ago

Comparing Three Depreciation Methods

exis [7]

Answer:

1.a

2013 Depreciation

Straight line method $71,250

Units-of-output $102,600

Double declining balance $160,000

2014 Depreciation

Straight line method $71,250

Units-of-output $91,200

Double declining balance $80,000

2015 Depreciation

Straight line method $71,250

Units-of-output $62,700

Double declining balance $40,000

2016 Depreciation

Straight line method $71,250

Units-of-output $28,500

Double declining balance $20,000

1.B Total Depreciation in 4 years

Straight line method $285,000

Units-of-output $285,000

Double declining balance $300,000

2. Double declining balance yields the highest depreciation expense for 2013

3. Double declining balance yields the highest depreciation expense over the FOUR-year life of an equipment

Explanation:

1.A In computing straight line method, the formula would be:

(cost of equipment - salvage value) / life of equipment

2013

(320,000 - 35,000) / 4 years = 71,250

2014

(320,000 - 35,000) / 4 years = 71,250

2015

(320,000 - 35,000) / 4 years = 71,250

2016

(320,000 - 35,000) / 4 years = 71,250

TOTAL DEPRECIATION IN 4 YEAR LIFE OF EQUIPMENT = $285,000 ($71,250 + $71,250 + $71,250 + $71,250)

<em>UNITS-OF-OUTPUT METHOD</em>

Formula: (Cost of equipment - salvage value) / total operating hours of equipment x operating hours used for the year

2013

($320,000 - 35,000) / 20,000 x 7,200

($285,000 / 20,000) x 7,200

14.25 per hour x 7,200 =$102,600

2014

($320,000 - 35,000) / 20,000 x 6,400

($285,000 / 20,000) x 6,400

14.25 per hour x 6,400 =$91,200

2015

$320,000 - 35,000) / 20,000 x 4,400

($285,000 / 20,000) x 4,400

14.25 per hour x 4,400 =$62,700

2016

($320,000 - 35,000) / 20,000 x 2,000

($285,000 / 20,000) x 2,000

14.25 per hour x 2,000 =$28,500

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $285,000 ($102,600 + $91,200 + $62,700 + $28,500)

DOUBLE DECLINING BALANCE

Formula: 100%/life of equipment x 2

*residual value will not be considered in this method of computation of depreciation expense.

2013

100% / 4 years x 2 = 50%

$320,000 x 50% = $160,000

2014

100% / 4 years x 2 = 50%

$320,000 - $160,000 =$160,000

$160,000 x 50% = $80,000

2015

100% / 4 years x 2 = 50%

$320,000 - ($160,000 + $80,000) = $80,000

$80,000 x 50% = $40,000

2016

100% / 4 years x 2 = 50%

$320,000 - ($160,000 + $80,000 + $40,000) = $40,000

$40,000 x 50% = $20,000

TOTAL DEPRECIATION IN 3 YEAR LIFE OF EQUIPMENT = $300,000 ($160,000 + $80,000 + $40,000 + $20,000)

2. Double declining method yields the highest depreciation expense in 2013 in the amount of $160,000 as computed above.

3. The method that yields most depreciation over the four-year life of an equipment is the DOUBLE DECLINING METHOD in a total amount of $300,000.

5 0

4 years ago