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Galina-37 [17]
3 years ago
15

Picozzi Snow Removal's cost formula for its vehicle operating cost is $2,060 per month plus $306 per snow-day. For the month of

January, the company planned for activity of 16 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $7,720. The vehicle operating cost in the planning budget for January would be closest to:
Business
1 answer:
ArbitrLikvidat [17]3 years ago
7 0

Answer:

Planning budget=$6,956

Explanation:

<em>The planning budget is that which is based on the expected level of activity. It is the original budget used for planning purpose</em> .

The planning budget for Picozzi would based on the planned activity level of 16 snow-day

The operation cost formula = 2,060 + $306 per snow-day

Planning budget  = 2,060 + (306×16)=$6,956

Planning budget=$6,956

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On January 1, a company purchased equipment that cost $10,000. The company has not yet recorded depreciation, which is estimated
finlep [7]

Answer:

The adjusting entry is:

Debit Depreciation Expense - Equipment $1,800

Credit Accumulated Depreciation - Equipment $1,800

To record depreciation expense.

Explanation:

The adjusting journal entry records the depreciation expense for the year and adds the expense to the accumulated depreciation account.  The accumulated depreciation account is a contra account to the Equipment account.  The purpose that this contra account serves is to keep the Equipment account at its cost value while the gradual write-off of its value is reflected in an opposite account.

3 0
3 years ago
Suppose that when the price of a certain commodity is p dollars per unit, then x hundred units will be purchased by consumers, w
Nataly_w [17]

Answer:

Profit = TR- TC&#10;= x (P) - C(x)&#10;= x(-0.05x+38) - (0.02x^{2} + 3x + 574.77)&#10;= -0.05x^{2} + 38x - 0.02x^{2} - 3x - 574.77&#10;= -0.07x^{2} + 35x -574.77

This profit equation is an equation of a parabola that opens downward (Since A=-0.07<0) and has its vertex at

x= -\frac{B}{2A}  = -\frac{35}{2 (-0.07)}  = 250

Thus, revenue is maximized when x=250 hundred units. At this quantity maximum profit is

P(250)=3800.23 hundred dollars

b. Profits are maximised at x=250 hundred units. The per unit price at this is,

p= -0.05x + 38&#10;= -0.05 (250) + 38&#10;= $25.5


7 0
3 years ago
A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year. Each bottle costs $12, plus a fixed charge of $12
Maksim231197 [3]

Answer:

500 bottles should be ordered at a time.

20 orders should the warehouse place in a year to minimize inventory costs.

Explanation:

The number of bottles which minimizes the warehouse cost is known as the economic order quantity.

Economic Order quantity minimizes both the holding or carrying cost of inventory as well as the ordering cost.

<em>Economic Order quantity = √((2 × Annual demand × cost per order) / Holding cost per unit)</em>

                                          = √((2 × 10,000 × $125) / $10)

                                          = 500 bottles

<em>Number of Order = Total Demand / Economic Order Quantity</em>

                             =  10,000 / 500

                             =  20 orders

Conclusion :

500 bottles should be ordered at a time.

20 orders should the warehouse place in a year to minimize inventory costs.

4 0
3 years ago
Which of the following is not a function of public relations?
Zigmanuir [339]
C. Introducing new products with limited associated advertising
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Besides not being required, why do you think a company would choose to report or not report a gross profit line? Why do you thin
aleksley [76]

Answer:

Gross profit = net sales revenue - cost of goods sold. But what happens when your company doesn't sell any goods, specially if they only sell services and it is impossible to determine the COGS.

This is basically an accounting issue since the <u>IRS</u> defines COGS as:

  1. <em>The cost of products or raw materials, including freight  </em>
  2. <em>Storage </em>
  3. <em>Direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products </em>
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So if your company doesn't sell any items from inventory, the IRS will not consider that your company incurred in COGS.

Reporting COGS is very useful for deducting business expenses, but it is not mandatory. Also, any expenses deducted as COGS cannot be deducted again as any other type of cost. So it is simply an accounting practice that helps certain industries to report their business expenses more clearly and in an orderly manner. But if it is too complicated to determine your company's COGS, then you can report your expenses in other ways and reduce your problems.

8 0
4 years ago
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