Answer:
The increase will affect next year's total amounts for the following costs as : a. increase no change increase
Explanation:
Increase of sales by 15% next year <em>affects</em> the units of production and sales.
This increment will result in <em>incremental costs</em> of revenues and costs <em>that vary</em> with the number of units produced and sold
Thus, Variable Costs = Increase
Fixed Cost = No Change
Mixed Costs = Increase (the Variable Component Only)
Explanation:
Consumers are most likely to find the best prices in: Tactic
Answer:
The answer is D.
Explanation:
Total earnings in 4 years
= 6000 + 3000 + 6000 - 2000
= $13,000
Ending retained earnings after 4 years
= $10,000
Total amount paid out as dividend in 4 years
= $13,000 - 10,000
= $3,000
Average amount of dividends paid per year
= $3,000/4
= $750
Answer:
Projects W and X have lower expected returns
Projects Y and Z have higher expected returns
Explanation:
Given
Solving (a): Compare the expected return of each project to 12.1%
Expected Return of each project is calculated as:
For Project W:
Lower Expected return
For Project X:
Lower Expected return
For Project Y:
Higher Expected return
For Project Z:
Higher Expected return
There is no question in (b)
Answer:
The correct answer is $9187.5.
Explanation:
According to the scenario, the given data are as follows:
Asset cost = $140,000
Residual value = $42,000
Life period = 8 years
So, Annual depreciation can be calculated by using following method:
Annual depreciation = ( Asset cost - Residual value) ÷ Life period
= ($140,000 - $42,000) ÷ 8
= $12,250
As depreciation is to be recorded till Dec.31
So, total time period = Apr - Dec = 9 months
So, Depreciation expense till Dec.31 = $12,250 × (9 ÷ 12)
= $9,187.5
Hence, Depreciation expense till Dec.31 is $9,187.5.