Answer:
7.5%
Explanation:
Cost savings
:
= Equipment cost - New machine cost
= 30,000 - 12,000
= 18,000
Depreciation per year
:
= Cost of automated bottling machine ÷ Useful years
= 120,000 ÷ 10
= 12,000
Simple rate of return:
= (Cost savings - Depreciation of new equipment) ÷ (cost - salvage of old)
= (18,000 - 12,000) ÷ (120,000 - 40,000)
= 6,000 ÷ 80,000
= 0.075
= 7.5%
Answer:
D. Sole proprietor's wages.
Explanation:
The owner of the business is the sole proprietor on the other hand sole proprietor is not an employee. Therefore he receives no salaries as he is the person who is an owner of any company or an organization. Any sum he takes from the company is considered to be withdrawn amount.
Hence, Sole Proprietor's wages are not listed in the ledger of the sole proprietor. So, the correct answer is D.
Answer:
D. rises as output falls.
Explanation:
Average fixed cost refers to the fixed cost per unit. Average fixed costs can, therefore, be described as the production's fixed costs divided by the output. Fixed costs are the expenses that remain constant in a period.
Average fixed costs will decline as production increases. Fixed costs are constant; diving them with a large output means spreading them in many quantities. For example, if the fixed costs are $1000 and the output is 2000, the average fixed cost will be $0.5. If the production increases to 4000, then the average fixed cost will decrease to $0.25. A decline in production results in high average fixed costs.