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Inga [223]
3 years ago
9

You are comparing two companies in the same industry. You have determined that Gore Corp. depreciates its plant assets over a 40

-year life, whereas Ross Corp. depreciates its plant assets over a 20-year life. Discuss the implications this has for comparing the results of the two companies.
Business
1 answer:
love history [14]3 years ago
5 0

Answer:

Gore Corp. is depreciating over a longer term than Ross Corp. This means that on a yearly basis, they will have less depreciation expenses. This would give them a higher net income than Ross Corp but as a result they will then have to pay a higher tax.

Ross Corp on the other hand will be depreciating over a shorter term so this would mean that they are recognizing a higher depreciation expense per year. This would mean that their net income will be lower and by extension their taxes will be lower as well.

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Larry, the owner of small hotel resort, would like to advertise his hotel in major American newspapers and magazines as a part o
timama [110]

Answer:

Serendipity

Explanation:

From the question we are informed about Larry, who is the owner of small hotel resort, would like to advertise his hotel in major American newspapers and magazines as a part of his larger strategy. However, he doesn't have enough money to do so. One day, he meets Todd, the owner of a group of newspapers and magazines, who offers him advertising space in his publications on the condition that Larry provides him with a free stay at the hotel. This is an example of Serendipity.

Serendipity can be regarded as unplanned fortunate discovery, which is a common occurrence that could take place throughout the history of a particular product invention as well as scientific discovery. It can be explained as the luck that comes to some people way as they are finding or creation of interesting things as well as valuable things by chance

5 0
3 years ago
I make $2,000/month. Of that the government takes $200 in taxes. Then I pay $1,000 for rent, $400 for food, and $200 in utilitie
Musya8 [376]

Answer:

My savings

Explanation:

Savings for a month is the amount left after deducting all my expenditure from my monthly income

Savings = income - total expenditure

income = $2,000

total expenditure = $200 + $1,000 + $400 + $200 = $1,800

Savings = $2,000 - $1,800 = $200

7 0
3 years ago
Many organizations are concerned about the rising cost of employee benefits and question their value to the organization and to
shepuryov [24]

Answer:

Benefits that are of most prominent incentive to the employees and to the organization are as per the following:  

  • The employees are obligated to get benefits that are variable and are a piece of salary bundle. These can incorporate house lease remittance, travel recompense, training stipend and advancement of the worker youngster and so forth.  
  • Health, life and handicap benefits likewise to be incorporated into the salary. Phone recompense if the activity requires making a great deal of calls to different clients.  
  • The firm ought to likewise give paid leaves and occasions to the employees to reproduce and revive their psychological capacity.

4 0
3 years ago
Consider the futures contract written on the S&P 500 index and maturing in one year. The interest rate is 4.2%, and the futu
Anarel [89]

Answer:

$1,534.372

Explanation:

The computation of the expected level of the index in one year is shown below:

= Current index level × 1 + expected rate of return on the market - expected future value of the dividend paid over the next year

= $1,433 × (1 + 8.4%) - $19

= $1,553.372 - $19

= $1,534.372

We simply applied the above formula so that the expected level of the index in one year could come

7 0
3 years ago
Using the following information, estimate Rogue Outdoors annual or monthly market demand for adult hiking shoes: Number of 18-65
8_murik_8 [283]

Answer:

Rogue Outdoor’s break-even point in units and dollars is 720 units and $72,000 respectively.

Explanation:

In this question we use the formula of break-even point in the unit which is shown below:

= (Fixed expenses) ÷ (Contribution margin per unit)

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $100 - $50

= $50

Now put these values to the above formula  

So, the value would equal to

= $36,000 ÷ 50 per units

= 720 units

And, the formula of break-even point in dollars which is shown below:

= (Fixed expenses) ÷ (Contribution margin ratio)

where,  

Contribution margin ratio = (Contribution margin ÷ selling price per unit) × 100

where, Contribution margin =  Selling price per unit - Variable expense per unit )

= $100 - $50

= $50

So, the contribution margin ratio = 50%

Now put these values to the above formula  

So, the value would equal to

= $36,000 ÷ 50%

= $72,000

4 0
3 years ago
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