Answer: A: remain constant on a per-unit basis but change in total based on activity level
Explanation: A Variable cost is a cost an organisation incurs that is affected by fluctuations in production and so changes between given periods.
variable costs are not consistent but fluctuates in relation to the production activity of an organisation. Variable costs increases as production level increases and vise versa.
Costs associated with variable costs are those that contribute directly to the goods or service being offered by a business and therefore differ from period to period.
The total costs a company incurs are divided into Variable costs and Fixed costs. variable costs are costs incurred on raw materials, commission, labour, packaging and shipping while fixed costs are costs incurred on rent, salaries, repairs and maintenance, electricity etc.
Answer:
Strength:
Further strengthening the brand name and will be able to capture the market share by staying open for 24 hours.
Increasing the efficiency of the franchise by selling additional products. (Sales to capital employed ratio)
Excellent location will add up value to the franchise which makes it more prior to the other pizza offering franchises.
Weakness
Staffing and inventory management would be required for the additional working hours and at night shifts the employees demand more for the services they offer.
Opportunity
There is additional demand for the products of the Domino's to sell the customers at night. Usually in the weekends, Americans go to bed late night.
Threats
We are promoting late night eating which is not good for health so this is threat to our brand image.
Their is the threat that the existing competitors must react to our offerings by lowering their cost or by increasing the quality of their offerings.
Answer:
Price of the Bond is $868.82
Explanation:
Market Value of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:
Market Value of the Bond = C/2 x [ ( 1 - ( 1 + r/2 )^-2n ) / r/2 ] + [ $1,000 / ( 1 + r/2 )^2n ]
Whereas
C = coupon payment = $110.00 (Par Value x Coupon Rate)
n = number of years = 7
r = market rate, or required yield = 14% = 0.14
P = value at maturity, or par value = $1,000
Price Value of the Bond = $110/2 x [ ( 1 - ( 1 + 14%/2 )^-2x7 ) / 14%/2 ] + [ $1,000 / ( 1 + 14%/2 )^2x7 ]
Price Value of the Bond = $55 x [ ( 1 - ( 1 + 7% )^-14 ) / 7% ] + [ $1,000 / ( 1 + 7% )^14 ]
Price of the Bond = $481.0+$387.82
Price of the Bond = $868.82
Answer:
Dr Depletion expense 87,465
Cr Accumulated depletion, coal mine 87,465
Explanation:
total depreciable costs = $476,000 + $119,000 + $95,200 - $190,400 = $499,800
depletion rate = $499,800 / 4,760 tons of coal = $105 per ton of coal
depletion expense during year 1 = $105 per ton x 833 tons = $87,465
Depletion expense is similar to depreciation expense, and is primarily used by extracting companies, e.g. mines, oil companies. Accumulated depletion decreases the book value of the asset.
Barb is correct. The agreement must be in writing to be enforceable.
Explanation:
A written agreement that is legally binding is a true agreement and can therefore be enforced.
It ensures that the people that signed the agreement must perform their duties under the agreement. We can be penalized if they do not.
Although documents need not be published to be legally binding, it is a good idea to keep a record in writing of what you have agreed. It minimizes the likelihood that you and the other side will find themselves on the same page in a disagreement. The article describes the conditions for a legally binding written agreement.