The cost of adding more options. Supply and demand: would the students want to have salad for lunch, or would it go to waste?
Answer:
There is not gain in this operation so the answer is $0
Explanation:
There are some journal entries that needs to be done to have a full picture of the statement
* Purchase
Fixed Assets 690.000
Cash 690.000
* Monthly depreciation
Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis
Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400
Then calculate the yearly depreciation
Yearly depreciation = ((amount to be depreciated/useful life) * years used) =
(641.400/10*8) = 513.120
then the journal entry to record the monthly depreciation for 8 years is
Depreciation expense 513.120
Acc Depreciation 513.120
* Post the Journal Entry to record the sell of FA
You have to reverse the Acc Depreciation and credit the FA
Cash 152.500
Fixed assets 690.000
Acc depreciation 513.120
Loss on sale of FA 24.380
Answer:
The correct answer is Spot market.
Explanation:
The spot market or spot market is one in which both the transaction and the settlement of an operation coincide on the same date. Although it is considered cash market when delivery occurs up to a maximum of 2 days later.
In spot markets, transactions are usually settled within a day or two after the date of purchase / sale. This is what is understood as a settlement in D + 1 or D + 2. The transactions are also closed at the current price on the asset in question that exists at the time of the transaction. This is one of the main differences between the cash market and the futures market.
The expected increase in revenues is $2,20,000
.
The expected increase in costs is $1,40,000.
The Selling price per unit for the new 10,000 units order is $22. So, increase in revenues is to the extent of (10,000 × $22).
The question assumes excess capacity, hence fixed expenses will remain the same. The increase in Variable costs to the extent of (10,000 × $14) will contribute to an increase in costs.
