Answer:
$191,500
Explanation:
If the item is not dropped:
Loss = Sales - Variable expenses - Fixed manufacturing expenses - Fixed selling and administrative expenses
= $923,000 - $405,500 - $337,000 - $244,000
= (63,500) loss
Fixed mfg. expenses remaining:
= Fixed manufacturing expenses - Avoidable Fixed manufacturing expenses
= $337,000 - $207,500
= $129,500
Fixed selling and administrative expenses remaining:
= Fixed selling and administrative expenses - Avoidable Fixed selling and administrative expenses
= $244,000 - $118,500
= $125,500
Loss in expenses remaining if item is dropped
:
= Fixed mfg. expenses remaining + Fixed selling and administrative expenses remaining
= $129,500 + $125,500
= ($255,000)
Overall net operating income would decrease by:
= Loss in expenses remaining if item is dropped - Loss in expenses if item is not dropped
= $255,000 - $63,500
= $191,500
Answer:
(a) $3.48 per unit
(b) 64.2%
Explanation:
(a) Anthony’s contribution margin per unit:
= Selling price per unit - Variable cost per unit
= $5.42 - $1.94
= $3.48 per unit
Therefore, the Anthony’s contribution margin per unit is $3.48 per unit.
(b) Anthony's contribution margin ratio:
= (Contribution Margin Per unit ÷ Selling Price per unit) × 100
= ($3.48 per unit ÷ $5.42 per unit) × 100
= 0.6420 × 100
= 64.20%
Therefore, the Anthony's contribution margin ratio is 64.2%.
Answer:
The value of the investment at the time of his first deposit is $1,000.
At the end of the first year, the investment will be worth $1,070.
Explanation:
The value of a deposit investment is determined by the interest rate and time. Time affects the value of an investment by this small-scale businessman in many ways. The passage of time increases the value of his investment. However, the total increase may not be due to the interest rate, but inflation also affects asset's value. For this businessman to make a gain in the investment, the interest rate must be higher than the inflation rate. Otherwise, the investment loses money due to the effects of inflation, which reduces the real value of an asset over time.
Answer:
D. $460,500
Explanation:
Given that
Cost of parcel of land = 450000
Legal fees = 3000
Broker's fees = 7500
Therefore,
Amount recorded as cost of parcel of land is
Cost of parcel of land + legal fees + brokers fee
= 450000 + 3000 + 7500
= $460,500
When purchasing land, fees like commissions, legal fees, bank fees, title fees and other expenses added before the land can be used are considered as part of the land's cost. Hence the answer.
Answer:
D, neither excludable nor rival in consumption, a tornado siren is a public good.
Explanation:
A tornado siren is a siren that is used to give emergency warnings to a large population of an impending danger or danger that has passed.
A tornado siren otherwise known as the civil defense siren is of public good and as such is not a rival neither can it be excluded from consumption.
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