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3 years ago

Examples of veriable costs

Business

1 answer:

Leviafan [203]3 years ago

7 0

Answer:

Exmples are : labor wage, cost of inputs

Explanation:

Variable cost are the costs that are changing with changing in inputs or production.

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Instructions: Please answer questions A-D below. I can't award credit if A-D isn't answered completely.

enyata [817]

Answer:

A, 3.8 years

b NPV = $2,189,324.56

c. IRR = 20.33%

d. Primas Corp can carry out the conversion because it would be profitable all other things being equal

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = amount invested / cash flow = $7,125,000 / $1,875,000 = 3.8 years

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

NPV and IRR can be calculated using a financial calculator

Cash flow in year 0 = $-7,125,000

Cash flow each year from year 1 to 8 = $1,875,000

I = 12%

NPV = $2,189,324.56

IRR = 20.33%

D.the NPV is positive and the IRR exceeds the discount rate so the project is profitable and the company should undertake the project

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

3 0

3 years ago

Your company issues $50,000 of one-year, 10% bonds at face value. The journal entry to record this transaction will include a de

Ostrovityanka [42]

Answer:

A. Cash and a credit to Bonds Payable for $50,000

Explanation:

The journal entry is shown below:

Cash $50,000

To Bonds Payable $50,000

(being the issuance of the bond payable is recorded)

We simply debit the cash as it increased the assets and credited the bond payable as it also increased the liabilities so that the proper posting could be done i.e $50,000 should be credited and debited

8 0

3 years ago

The price of apples used to make apple pies has decreased. At the same time, people expect the price of apple pies increase sign

leonid [27]

Answer:

A. Equilibrium quantity will increase; the effect on price is ambiguous.

Explanation: Several factors are known to be having impact on the Quantity demanded and the price of goods sold,one of the factors includes when Consumers speculate that the price of goods and services will increase or decrease in the future.

WHEN PEOPLE SPECULATE THE THE PRICE OF APPLE PIES WILL INCREASE IN THE FUTURE,THEY WILL ENGAGE IN PANIC BUYING WHICH WILL INCREASE THE QUANTITY DEMANDED AND THE EFFECT ON PRICE WILL BE AMBIGUOUS.

4 0

3 years ago

Read 2 more answers

Colorado Mountain Mining paid $ 896,900 for the right to extract mineral assets from a 500,000-ton deposit. In addition to the

Zepler [3.9K]

Answer:

(a) The asset would be recorded in accordance to IAS 16 Property, plant & equipment.

Dr Mining Asset 896,900

Cr Bank 896,900

(b) IAS 16 says that the costs incurred to make the asset ready for use must be capitalized as part of the asset. This means the license fee $1000 filing fee, License fee $2100 and $50,000 amount paid for geological survey must be capitalized. So the entry is as under:

Dr Mining asset (1k+2.1k+50k) $53,100

Cr Bank $53,100

(c) This assets must be depreciated on the basis of tons of minerals extracted which is 60 thousands tons in the first year.

Depreciation Expense = (60k tons / 500k tons) * (Total capitalized cost)

=(60,000/500,000) * (896,900+53,100) = $108,000

The Double entry of Depreciation Expense would be as under:

Dr Depreciation Expense $108,000

Cr Accumulating Depreciation $108,000

3 0

3 years ago

A foreign subsidiary is a company owned in a foreign country by another company called the:________

gladu [14]

Answer: parent company

Explanation:

6 0

2 years ago

Examples of veriable costs​

Examples of veriable costs