Answer:
3.52
Explanation:
Calculation to determine the target cost per unit?
Using this formula
Target cost per unit=Projected sales -Desired profit /Projected units
Let plug in the formula
Target cost per unit=$300,000-$36,000/75,000 units
Target cost per unit=$264,000/75,000 units
Target cost per unit=3.52 per unit
Therefore the target cost per unit is 3.52
Answer:
b. debit Machinery and Accumulated Depreciation; credit Machinery, Cash, and Gain on Disposal
Explanation:
When machinery exchange and its value is greater than the book value so the journal entry is recorded which is shown below:
Machinery A/c Dr XXXXX
Accumulated depreciation A/c Dr XXXXX
To Machinery A/c XXXXX
To Cash A/c XXXXX
To Gain on disposal A/c XXXXX
(Being the exchange is recorded)
Hence the most appropriate option is b.
Answer:
NPV = $55,894.45
Explanation:
the initial outlay of the project is $200,000
the salvage value is $10,000
useful life 10 years
annual costs $9,000
annual savings $50,000
luckily there are no taxes in space
we must determine the effective interest rate in order to be able to discount the future cash flows
(1 + 0.0478/6)¹² - 1 = 9.99%
the net cash flow per year (for years 1 - 9) = $50,000 - $9,000 = $41,000
net cash flow for year 10 = $41,000 + $10,000 = $51,000
using a financial calculator, the NPV = $55,894.45
Answer:
A
Explanation:
Leasing a house is the other name for renting a house which is preferably far more better for a person or a family who is planning to live there for a short period of time. A lessor is a person who gives his property on rent to the lessee. It is a way through which the person taking the house on rent is relieved from incurring cost on the repairs if required as the responsibility solely belongs to the owner of the house that is the lessor. People prefering leasing over buying a property is always ready to bear the increase in the costs of rent which is far more lesser than spending money or saving money for the down payment for buying a house. Moreover the person leasing the house only gets the ownership of the house under a contractual basis where they dont have the right to sell the property taken on lease.
Answer:
6.6
Explanation:
The formula and the computation of the times interest earned is shown below:
Times earned interest = (Earnings before income tax and interest expense) ÷ (Interest expense)
where,
Earnings before income tax and interest expense is
= $387,520 + $69,200
= $456720
And, the interest expense is $69,200
So, the times interest earned ratio is
= $456,720 ÷ $69,200
= 6.6
