Answer:
Part A. $1200
Part B. $1200
Explanation:
Part A.
Under MACRS rules, the depreciation rate for the 5 year recovery period asset would be:
Year 1 20%
Year 2 32%
Year 3 19.2%
Year 4 11.52%
Year 5 11.52%
Year 6 5.76%
This means that the first year MACRS depreciation deduction would be 20% which is $1200 ($6000 * 20%).
Part B.
If Sid does not elect Section 179 expensing then the depreciation would be calculated using straight line basis.
The depreciation would be:
Depreciaiton Expense = $6000 / 5 Years life = $1200
Answer:
$270,000
Explanation:
The first step is to calculate the overhead cost of the material handling parts
Since each wind stock require 3 parts then the overhead cost can be calculated as follows
= 3 × 20,000
= 60,000
The overhead cost of machining hours can be calculated as follows
Since 5 minutes is spent in the machining department then overhead cost is
= 5× 20,000
= 100,000
The overhead cost of packaging number of finished units can be calculated as follows
= 2 × 20,000
= 40,000
Total overhead cost= 100,000 + 60,000 + 40,000
= 200,000
The total cost of direct materials and labor can be calculated as follows
= 3.5 × 20,000
= 70,000
Therefore the total cost of producing 20,000 windstocks is
= Total overhead cost + total cost of direct materials and labor
= 200,000 + 70,000
= $270,000
Hence the total cost of producing 20,000 windstocks is $270,000
Answer:
a) $3077
b) The owner should make this investment because the marginal benefit is greater than the marginal cost
Explanation:
Given data :
Total cost = $2000
depreciation rate = 8% per year
expected increase in revenue (CF ) = $400
interest rate = 5%
a) Determine the present value of the stream of revenue due to the upgrades
= CF / ( 1 + r ) ^t where ( 1 + r )^t = 13%
= 400 / 13%
= $3077
b) The owner should make this investment because the marginal benefit is greater than the marginal cost
A motorcycle or scooter would be the best option for Jim. Couple means two, so for two years, buying a very poor car would be the only option as to not go over two years of paying a loan on the car. What would cost Jim most is the fuel. A poor car will get very poor mpg, and short, stop and go, type trips is what takes the most fuel from any given vehicle. Commuting motorcycles and scooters alike can reach over one hundred miles per gallon. You can pay downward from five thousand dollars for a top of the line scooter if Jim so chooses.
I hope this helps.
One can identify the most promising distributors by:
- Looking at their credit history and others to check their Financial stability Also examine their size in terms of outside and inside sales power, selling skills, competence and others to know their Sales and marketing strength.
- Evaluate their past sales history in terms of same or similar cuisines to know their Sales performance and then rate them in their order of importance,
<h3>How do one evaluate Potential Distributors?</h3>
This is done by;
- Lookin for their Financial stability through credit history, being timely in payments, and others.
- Looking their Sales and marketing capabilities.
- Looking at their service delivery and Sales performance.
Note that One can identify the most promising distributors by checking their credit history and examine of all their past sales history to be able to tell their Sales performance.
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