Answer:
A. Using the same format you would use if you were responding in writing
Explanation:
here the answer should be A that is
A. Using the same format you would use if you were responding in writing.
What this means is that, the response should be neutral and catered in a way that we would if we're writing the answer in order to allow a better, more neutral understanding of the process, unless otherwise stated.
The statement “Expenses, such as depreciation on buildings
are also known as variable expenses.”, is false, due to the fact that depreciation
is a fixed cost since throughout its useful life as an asset, it reoccurs in
the same amount per period, and thus, depreciation cannot be considered a
variable cost. Nevertheless, as with all things, there is an exception. The
depreciation will be sustained in a pattern that is more consistent with a
variable expense, only if a business recruits a usage-based depreciation methodology.
To add, the corporate expense that alters with the company’s
production output is called the variable cost.
Answer:
a. $12.08 per share
Explanation:
For computing the next year stock we have to do the following calculations
Current Earning per share = Net Income ÷ Number of Common Shares Outstanding
= $9,750,000 ÷ 5,500,000 shares
= $1.77
Current Price Earning ratio = Current stock price ÷ Current EPS
= $14.74 ÷ $1.77
= 8.33
Now Next year earning per share = $9,750,000 × 1.25 ÷ 8,400,000 shares = $1.45
So, the next year stock price = $1.45 x 8.33
= $12.08 per share
Answer:
$10,700
Explanation:
The unit product cost = $15 + $57 + $3 = $75
Sale revenue = $100 × 8,400 = $840,000
Less :Variable cost
Variable cost of goods sold = 8,400 × $75 = $630,000
Variable selling and administrative = 8,400 × $7 = $58,800
Contribution margin = $151,200
Fixed manufacturing overhead = $132,000
Fixed selling and administrative expenses = $8,500
Net operating income = $10,700
Answer:
a. Straight-Line method:
Year depreciation = (Cost - Residual value) / useful life
= (130,000 - 10,000) / 6
= $20,000
2019 = $20,000 2020 = $20,000
b. Double declining.
= Twice the rate of straight-line.
= 1 / 6 * 2
= 33%
2019 2020
= 130,000 * 33% = (130,000 - 42,900) * 33%
= $42,900 = $28,743
c. Units of Production:
Rate per unit = (Cost - residual) / Number of units in lifetime
= (130,000 - 10,000) / 1,000,000
= $0.12 per unit
2019 2020
= 180,000 * 0.12 = 140,000 * 0.12
= $21,600 = $16,800
