Answer: $1,000
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
Therefore, the opportunity cost for operating a homeless shelter is the amount that is received by renting the space of shelter for wedding parties.
Opportunity cost = Average wedding parties per month × Rent per party
= 5 × $200
= $1,000
Answer:
$40,160.
Explanation:
Total appraisal value = $55,500 + $50,200 + $19,300 = $125,000
Weight of land in the appraisal value = $50,200 ÷ $125,000 = 0.4016, or 40.16%
Amount to include in the accounting record = $100,000 × 40.16% = $40,160
Answer:
Budgeted purchases in units for August are 6600 units
Explanation:
The budgeted purchases in units for August under the policy followed by the company will be as follows.
The units required to meet August sales are 6000 units.
The opening inventory in August will be 40% of August sales that is 0.4 * 6000 = 2400 units
Thus, the units need to be purchased in August to meet August sales = 6000 - 2400 = 3600 units
In August, we also need to purchase enough units to cover 40% of September sales. Units needed in August for September sales = 0.4 * 7500 = 3000 Units
Purchases in August = Purchases required to meet August sales - Purchases required to meet the desired ending inventory
Purchases in August = 3600 + 3000 = 6600 units
Answer:
Controllable margin =$125,000
Return on investment = 20%
Explanation:
<em>Controllable margin is the difference between the sales revenue and the controllable cost. Controllable costs include variable and fixed cost directly under the control of the manager and which are influenced by his decisions.</em>
Controllable margin - Sales revenue - variable cost - controllable fixed cost
Controllable margin= $500,000 - $300,000 - 75,000 = $125,000
Controllable margin =$125,000
Return on investment = (controllable margin/ Average investment) × 100
= (125,000/625,000) × 100 = 20%
Return on investment = 20%
Answer:
Cash flow generated from operating activities <em>12,010,000</em>
Explanation:
10,000.000
+1,600,000
Adjusted Net Income 11,600,000
↑AR -600,000
↓Inventory 100,000
↑AP 800,000
Change in working capial 300,000
Other adjustment 110,000
Cash flow generated from operating activities 12,010,000
