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3 years ago

Belltone Company made the following expenditures related to its 10-year-old manufacturing facility:

Business

1 answer:

scoundrel [369]3 years ago

6 0

Answer:

The journal entries are as follows:

(1) Accumulated depreciation - Building A/c Dr. $250,000

To Cash $250,000

(To record the replacement of heating system)

(2) Building A/c Dr. $750,000

To cash $750,000

(To record the new wing)

(3) Maintenance expense A/c Dr. $14,000

To cash $14,000

(To record the maintenance expense)

(4) Equipment A/c Dr. $50,000

To cash $50,000

(To record the new equipment)

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Both product development strategies and diversification strategies involve ________. A. leaving the current market selling a com

denis-greek [22]

The options are:

A. leaving the current market selling a company's current products B. developing a new product C. selling in a company's current market D. selling in new as well as existing markets.

Answer:

B. developing a new product

Explanation:

Both when involved in product development strategy and diversification there will be development of a new product.

In product development strategy involves bringing new innovation to customers. New products that the market needs are developed.

In diversification strategy involves entering a new market and developing new product to get market share.

5 0

3 years ago

Barb works in a local factory. She receives 92 cents for each of the first 100 units she produces and $1.01 for each unit over 1

sergij07 [2.7K]

Answer:

The correct answer to the following question is $112.20.

Explanation:

Given information -

Barb receives 92 cents for the first 100 units

And if she produces more than 100 units , then she would receive $1.01 for each of the additional unit she produces

Therefore the amount she earns up to 100 units - .92 x 100

= $92

The amount she earns on the additional units - $1.01 x 20

= $20.20

The total amount she earns = $92 + $20.20

= $112.20

4 0

3 years ago

Answer the following questions (a) at zero output level if total cost is $100 what will be values of total variable cost and t

mr_godi [17]

Answer:

(a) Total fixed cost is equal to $100, while total variable cost is equal to $100.

(b) Total cost = $165; Average total cost = $41.25; Average fixed cost = $25; and Average variable cost = $16.25

Explanation:

A fixed cost is a cost that does not change as the output changes. It is usually incurred before production starts and it continues to be incurred when there is a production stoppage. It includes cost on plant and machinery, building, etc.

A variable is a cost that changes as output changes. It is not incurred when there is a production stoppage. It includes cost of material and labour.

Based on this we can answer the question as follows:

(a) at zero output level if total cost is $100 what will be values of total variable cost and total fixed costs

At zero output level, fixed cost is equal to total cost. Therefore, total fixed cost is equal to $100.

At zero output level, no variable cost will be cost. Therefore, total variable cost is equal to $100.

(b) At 4 units of output values of total fixed cost and total variable cost are $100 and $65 respectively. What are values for total cost, average total cost, average fixed cost and average variable cost?

Total cost = Total fixed cost + Total variable cost = $100 + $65 = $165

Average total cost = Total cost/Units of output = $165/4 = $41.25

Average fixed cost = Total fixed cost/Units of output = $100/4 = $25

Average variable cost = Total variable cost/Units of output = $65/4 = $16.25 .

4 0

3 years ago

Cold Duck Airlines flies between Tacoma and Portland. The company leases planes on a year-long contract at a cost that averages

Korvikt [17]

Answer:The Firm should continue to produce up until Revenue generated equals Marginal Cost. Cold Duck Company would maximize profit when the number of flights is in a level when Revenue equals Marginal cost which is the same as variable costs in this case.

Explanation:

Cold duck Airlines leases plane on a year long contract at an average cost of $600 per flight.The average cost of $600 per flight is calculated as Lease cost per year divided by number of flights. This tells us that the lease cost per year is fixed and the $600 average cost per flight is the Average Fixed cost. if Cold duck flies more planes between Tacoma and Portland The number flights will increase which will decrease the average lease cost per flight.

Other Costs fuel (flight attendants,etc) amount to $550 per flight, these costs will increase as Cold Duck Airlines increases flights between Tacoma and Portland. These costs should be treated as Variable costs because they increase as the number flights increases.

The revenue generated on each flight, which can be seen as the price for each flight is $1000.

The Firm maximizes its profits in a competitive market by producing a quantity level That makes Price equals Marginal cost, Marginal cost being the price of producing an additional unit, in this case is the cost of an additional flight which is $550 amount of other costs because lease cost fixed whether Cold Duck Makes 1 flight or 10 flights it doesnot change

The Firm should continue to produce up until Revenue generated equals Marginal Cost. Cold Duck Company would maximize profit when the number of flights is in a level when Revenue equals Marginal cost which is the same as variable costs in this case. Revenue would be equal to $550 when profit is at the maximum level

6 0

3 years ago

Read 2 more answers

The following information was taken from the records of Marigold Inc. for the year 2020: Income tax applicable to income from co

ivolga24 [154]

Answer:

Net income is $312,610.

Explanation:

This can then be prepared as follows:

Marigold Inc.

Single-Step Income Statement

For the Year 2020

Particulars $ $

Revenue

Sales Revenue 1,634,000

Rent revenue 34,400

Gain on sale Of equipment 81,700

Total revenue 1,750,100

Expenses

Cost of goods sold (731,000)

Selling expenses (258,000)

Administrative expenses (206,400)

Loss on write-down of inventory (51,600)

Total expenses  (1,247,000) 

Operating income before tax 503,100

Tax on income from continuing

operations (160,820)

Income from operation after tax 342,280

Other income (loss ) (net of tax)

Unrealized holding gain on

available-for-sale securities (net of tax) 12,900

Income from continuing operations

after tax 355,180

Discontinued operations

Loss on discontinued operations

before tax (64,500)

Tax on loss on discontinued operations 21,930

Loss on discontinued operations after tax (42,570)

Net income  312,610 

Earning per share

(Net income / Number of Shares outstanding) 3.13

5 0

2 years ago