<u>Explanation</u>:
Remember, Implicit cost refers to cost that do not involve monetary transactions by Jacques, while his Explicit cost includes all forms of direct payments made by Jacques to others while selling his boat.
<u>Therefore, the cost are assigned below:</u>
- The $50,000 salary Jacques could earn if he worked as a financial advisor= Implicit Cost
- The $15,000 rental income per year Jacques would receive if he chose to rent out his showroom= Implicit
- The wholesale cost of $430,000 and utility bills totaling $301,000 cost for the boats that Jacques pays the manufacturer= Explicit Cost
Answer:
Advertising
Explanation:
Considering the present market conditions in which this organization operates I propose to the Company Board that the organization starts advertising on various platforms considering the following reasons:
1. Increase Profit:
When we advertise, we create more sales which in turn leads to an increase in profits.
2. Market share:
The market share for this the company expands as a result of increased customers; due to advertising.
3. Builds Goodwill:
As the company becomes a very popular company because of growing advertising it will increase the trust if customers coming.
Answer:
a.used net cash of $17,000.
Explanation:
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net loss -$6,000
Adjustment made:
Add : Depreciation expense $12,000
Less: Increase in accounts receivable -$15,000
Add: Decrease in merchandise inventory $12,000
Less: Decrease in accounts payable -$20,000
Total of Adjustments -$11,000
Net Cash flow from Operating activities -$17,000
Answer:Please see explanation below
Explanation:
Labor Cost for Job 345 = Labor Hours × Direct labor rate
= 590 hours × $18 = $10,620
Labor Cost for Job 999.= Labor Hours × Direct labor rate
800 hours × $23= $18,400
Total Labor cost == $10,620 + $18,400
= $29,020
So since the assets increases, Work in process is debited and wages payable credited as it increases the liabilities.
The journal entry to record the flow of labor costs into production is given as
Journal to record the flow of labor cost
Account titles and explanation Debit Credit
Work in process $29,020
To Wages payable $29,020
Answer:
Instructions are below.
Explanation:
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 162,000 / (90 - 36)
Break-even point in units= 3,000
<u>The break-even point in units is the number of units required to cover for the fixed costs.</u> At this point, the net income is zero. When cost increase, there are necessary more units to break even.
Fixed cost increase= break-even point in units increases
Unitary variable cost increase= contribution margin decreases. Break-even point in units increases
Selling price increase= break-even point in units decreases.
