Answer:
$4,870.5
Explanation:
Annual Depreciation Expense:
= [(Cost - Salvage Value) × Machine Usage in 2020] ÷ Total Estimated Working Hours
Depreciation Expense for 2020 (for 3 months only - October to December):
= [($115,900 - $13,900) × 1,910] ÷ (10,000) × (3/12)
= ($102,000 × 1,910) ÷ (10,000) × (1/4)
= $19,482 × (1/4)
= $4,870.5
Notes:
Depreciation will be calculated for only 3 months since the asset has been acquired on 1st October 2020.
Answer:
B. $544,000
Explanation:
Given: Sales: $480000.
Contribution margin ratio= 25%
net loss= $16000.
Break even point: It is point in business where profit is equal to expenses of the business.
Now, finding the fixed expense.
Fixed expense= 
⇒ Fixed expense= 
⇒ Fixed expense= 
∴ Fixed expense= 
Next, computing the break even point
Sales to Break even point= 
⇒ Break even point= 
∴ Break even point= 
Hence, the break even point was $544000
A.exclusive it’s not an intense level of distribution
Answer:
Option (a) and (b) are considered or correct.
Explanation:
Under the following two conditions, a firm in a perfectly competitive market produces at a point where the marginal revenue is equal to the marginal cost:
(i) Minimum AVC < Price < minimum ATC : Yes
In this case, a firm may suffer a loss but it will be able to cover its minimum average variable cost. Hence, this firm continue operating in this market and if he shut down its operation then he may suffer a larger loss. Therefore, it chooses to continue operating under this market conditions.
(ii) Price > minimum ATC : Yes
In this case, the price received by the seller is greater than the minimum average total cost. Therefore, the firm is able to cover all of its cost of production and earning an economic profit. Hence, it obviously chooses to continue its operation.
The third option is not considered here because in this case, the firm won't be able to cover its variable cost.
Answer:
$6,540
Explanation:
Given:
accounts receivable of $238,000
allowance for uncollectable accounts of $600 (credit)
Also, the allowance for uncollectible accounts should be 3% of accounts receivable.
Therefore the amount of the adjustment for uncollectible accounts would be
= 3% of $238,000 - $600= $(7140-600)= $6,540
