Answer:
Part 1
$1,422,940
Part 2
$331,480
Explanation:
cost of the land calculation
Purchase Price $1305000
Cost to tear down building $121000
Sale of Salvages ($8400)
Leagl fees $5340
Total $1,422,940
The cost of the land that should be recorded by Wilson Co. is: $1,422,940
cost of the building calculation
Architect's fees $47000
Insurance $3900
Liability insurance $4200
Excavation cost $15480
city for pavement $9900
Borrowing Costs $251000
Total $331,480
The cost of the building should be recorded by Wilson Co. is $331,480
Answer:
$1,420,000 is the correct answer.
Explanation:
Answer:
$273,600
Explanation:
The selling price per unit is $160
Variable expense per unit is $70.40
Fixed expense per month is 153,216
Therefore the monthly breaking can be calculated as follows
CM ratio = 56%
=>56/100
= 0.56
= 153,216/0.56
= 273,600
Hence the monthly break even in monthly dollars sales is $273,600
To solve: add up all in the labor costs and then divide by the number of units produced to get the per unit cost of the labor.
<span>Direct materials = $4,400
Direct labor = $5,600
Factory overhead = $2,400
Units produced = 1,000
Per unit cost = ($4,400 + $5,600 + $2,400)/1,000
Per unit cost = $12,400/1,000
Per unit cost = $12.40</span>
Answer:
<h2>A reduction in the oil prices in United States would lead to a a larger reduction in the GDP deflator than the CPI.Hence,the correct answer in this case is option D) or a larger reduction in the GDP deflator compared to the CPI.</h2>
Explanation:
In Macroeconomics GDP deflator and Consumer Price Index(CPI) both indicates the fluctuations or variations in the overall price level of all the goods and services in the economy.However,CPI only includes the prices of goods and services that are finally consumed or purchased by the consumers or buyers in the economy and excludes the goods and services involved in any commercial,business to business or government exchange or transaction.On the other hand,GDP deflator estimates the price level of all the goods and services produced by the economy.Therefore,GDP deflator is a relatively comprehensive and broader price indicator in the economy compared to the CPI and is inclusive of all types of commercial transactions between all entities,unlike CPI.Now,in this context,oil is used both for final consumption by consumers or buyers as well as for commercial purposes or intermediate good by firms and companies for production of final goods and services.In many common instances,oil is heavily traded in the international market and is a major export commodity for most of the oil producing countries.Therefore,CPI,in this case,would only register the reduction in price of oil that has been used only for final consumption by the consumers or buyers in the economy.In contrast,GDP deflator will account for the overall reduction in price of oil that is produced by US in general which is used for all commercial,government or administrative and final consumption.Consequently, oil price reduction in US will cause a relatively higher reduction in its GDP deflator than the CPI.
