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Alenkinab [10]
3 years ago
6

4-55 A firm expects to install smog control equipment on the exhaust of a gasoline engine. The local smog control district has a

greed to pay to the firm a lump sum of money to provide for the first cost of the equipment and maintenance during its 10-year useful life. At the end of 10 years the equipment, which initially cost $10,000, is valueless. The firm and the smog control district have agreed that the following are reasonable estimates of the end-of-year maintenance costs: Year 1 2 3 4 5 $75 100 125 150 175 Year 6 7 8 9 10 $200 225 250 275 300 Assuming interest at 6% per year, how much should the smog control district pay to the firm now to provide for the first cost of the equipment and its maintenance for 10 years
Business
1 answer:
Kruka [31]3 years ago
8 0

Answer:

the  amount that should be paid is $11,292

Explanation:

The computation of the amount that should be paid is shown below:

Present worth is

= $10,000 + $75(P/A, 6%, 10) + $25(P/G, 6%, 10)

= $10,000 + $75 × 7.3601 + $25 × 29.6023

= $11,292

Hence, the  amount that should be paid is $11,292

We simply applied the above calculation

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A company has introduced a process improvement that reduces processing time for each unit, so that output is increased by 25% wt
Oksana_A [137]

Answer:

The productivity increase by 48.83%

Explanation:

old

60 units for 5 workers

5 x $12 = 60

material $16 x 60 = 960

overhead: 60 x 1.6 = 96

total revenue 60 x 31 =  1,860

total cosT: 60 + 960 + 96 = 1,116

productivity index_ 1,860 / 1,116 = 1,667

<em><u>now:</u></em>

output 60 + 25% = 75 units

6 workers x $12 = $72

materials $10 x 75 units = $750

overhead: $72 x 1.6 = $115.2

total revneue 75 units x $31 = 2,325

total cost: 75 + 750 + 115.2 = 940.2

productivity index_ 2,325 / 940.2 = 2,4728

percentage of improvement: ( it is calculate like a return on investment)

(2.4728 - 1.667) / 1.667 = 0.4883 = 48.83%

5 0
3 years ago
Which of the following would cause prices to drop? A. Increased production by business B. Increased taxes on business C. Higher
Ugo [173]
It would actually be an increased production by the business.

Haha, I had to think for a tiny bit and re-check my answer to make sure it was right before giving it. Would hate to see you get it wrong. 
8 0
3 years ago
Read 2 more answers
An investigator wanted to see whether packaging information affects the way teenagers rate the effectiveness of soap. the same s
MAXImum [283]

In the scenario in which an investigator wants to see whether packaging information affects the way teenagers rate the effectiveness of soap, the color of wrapper in addition to the intended independent variable might influence the results. The three different packages are in different colors : pink, red and white.

6 0
3 years ago
Gabriel Company views share buybacks as treasury stock. In its first treasury stock transaction, Gabriel purchased treasury stoc
denis23 [38]

Answer:

b. decrease no effect

Explanation:

When the treasury stock is repurchased and at a premium. That is the price more than the par value, the excess is debited to the additional paid in capital account as this is the account used to fund the additional amount required to pay the differential.

Retained earnings on the other hand are unaffected by this transaction as long as the company has enough funds in the paid in capital account to complete the transaction.

Total paid in capital will decrease

Retained earnings will have no effect

Hope that helps.

5 0
3 years ago
Identify the accounting concept that was violated in each of the following situations.1. Astro Turf Company recognizes an expens
aksik [14]

Answer:

1. Expense recognition or Matching principle

2. Historical cost principle

3. Economic Entity principle

Explanation:

1. The expense recognition or matching principle states that each expense should be recorded whenever the revenue is recognized or whenever the expenses are recognized. As AstroTurf company recognizes the cost of goods sold when the manufacturing process is completed, the company is violating the expense recognition principle.

2. The historical cost principle states that the cost of any non-current assets (tangible or intangible) should be valued at their purchase price or cost price. However, McCloud Drug company showed the Patent as market value in the balance sheet. Hence, the company is violating the historical cost principle concept.

3. According to the economic entity principle, one of the vital underlying assumptions, the economic activity of the business should be separated from its owner or manager or chairman or all other economic entities. As Philips company paid the mortgage of its president and showed it as a miscellaneous expense of the company's income statement, they violated the economic entity principle by not separating it.

3 0
3 years ago
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