Answer:
Sell before assembly, the company will be better off by $3 per unit
Explanation:
the aim of a firm is to maximise profit. The decision the firm would make would be based on the decision that yields the higher profit
Profit = revenue - cost
Profit that would be earned from selling the unassembled unit = $52 - $24 = $28
Profit that would be earned from selling the assembled unit = $64 - ($15 + $24) = 25
The profit from selling the unassembled product is greater than the profit from selling the assembled product by $3. The firm would prefer to sell the unassembled unit
Answer:
- KrAmerica will bear the risk of the loss
- George will not get full recovery for the value of the necklace
Explanation:
George only made some payments for the necklace and he had not taken possession of it yet. So the risk for the loss is with KrAmerica since they are the current owners of the necklace.
George was only to take possession of the necklace when payment was completed.
On the other hand George is seeking full recovery of the value of the necklace.
He has only made a part payment on the necklace, so he is not entitled to get the full value of the necklace.
Only the amount he has paid will be refunded to him.
Answer:
17 cakes
Explanation:
we need to find the expected demand
15 cakes x 10% = 1.5
16 cakes x 20% = 3.2
17 cakes x 25% = 4.25
18 cakes x 20% = 3.6
19 cakes x 15% = 2.85
20 cakes x 10% = 2
total = 17.4, so we must round down to 17 cakes since we cannot purchase or resell parts of a cake
Answer:
At the end of the first year, Borge should report unamortized bond discount of a. $169,470.
Explanation:
Solution:
Interest amount =
($2,817,000 * 0.09) - ($3,000,000 * 0.08)
=$13,530
Bond Disc. Amount; ($3,000,000 - $2,817,000) - $13,530
= $183,000 - $13,530
= $169,470
Answer:
Ans. the carrying value of the note as of September 30, 2018 is $404,006
Explanation:
Hi, the note was issued to mature in 6 months, and 4 months had passed, therefore there are still 2 months left for the note to mature, in other words, this works just as a non-coupon bond which you price in terms of its discount rate and the time remaining for this instrument to mature.
With that in mind, what we need to do is to find the time remaining for the bond to mature, so remember that it was issued on June,1 2018, and in order to facilitate our calculations, we say: "From June 1 to June 30, there is a month..." Now our date will match its maturity, so we just count months until September 30 and we found out that the result is 4 months, it means that this note has 2 months until it matures.
The formula to use is as follows.
Where n is the months to its maturity.
Everything should look like this:
Best of luck.