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3 years ago

Based on the following cost data, what conclusions can you make about the costs of Product A and Product B?

Business

1 answer:

Basile [38]3 years ago

6 0

Answer:

The answer is D

Explanation:

Product A is a variable cost because variable cost(inputs) increases(decreases) with increase (decrease) units(output).

Whereas for product B;

Though, fixed cost is fixed across all units of output but as the total output increases, the average fixed cost decreases because the same amount of fixed costs now cover a larger number of output produced.

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The major consideration of whether something can serve as money is that it must be

sashaice [31]

<span>Payments vary in forms from country to country and place to place. What can serve as money, basically, must be something that is considered an acceptable means of payment. It must be something that can be considered valuable in a barter or trade for the receiving party.</span>

7 0

3 years ago

P11-1A Tidal Corporation was organized on January 1, 2017. It is authorized to issue 20,000 shares of 6%, $50 par value preferre

saul85 [17]

Answer:

1. Jan. 10

Dr Cash $280,000

Cr Common Stock $70,000

Cr AdditionalPaid-in Capital-Common $210,000

Mar. 1

Dr Cash $636,000

Cr Preferred Stock $600,000

Cr Additional Paid-in Capital-Preferred $36,000

May 1

Dr Cash $720,000

Cr Common Stock $120,000

Cr Additional Paid-in Capital-Common $600,000

Sept. 1

Dr Cash $25,000

Cr Common Stock $5,000

Cr Additional Paid-in Capital-Common $20,000

Nov. 1

Dr Cash $168,000

Cr Preferred Stock $150,000

Cr Additional Paid-in Capital-Preferred $18,000

Explanation:

Preparation of the journal entries

1. Jan. 10

Dr Cash (70,000x$4) $280,000

Cr Common Stock (70,000x$1) $70,000

Cr AdditionalPaid-in Capital-Common $210,000

($280,000-$70,000)

Mar. 1

Dr Cash (12,000x$53) $636,000

Cr Preferred Stock (12,000x$50) $600,000

Cr Additional Paid-in Capital-Preferred $36,000

($636,000-$600,000)

May 1

Dr Cash (120,000x$6) $720,000

Cr Common Stock (120,000x$1) $120,000

Cr Additional Paid-in Capital-Common $600,000

($720,000-$600,000)

Sept. 1

Dr Cash (5,000x$5) $25,000

Cr Common Stock (5,000x$1) $5,000

Cr Additional Paid-in Capital-Common $20,000

($25,000-$5,000)

Nov. 1

Dr Cash (3,000x$56) $168,000

Cr Preferred Stock(3,000x$50) $150,000

Cr Additional Paid-in Capital-Preferred $18,000

($168,000-$150,000)

8 0

3 years ago

g Consider the income-expenditure model. Suppose that the marginal propensity to consume is equal to 0.8. A reduction in taxes o

RideAnS [48]

Answer:

increase by 400 billion dollars

Explanation:

marginal propensity to consume = mpc

tax multiplier = -mpc/1-mpc

from our question we were given mpc to be 0.8

-0.8/1-0.8

= -0.8/0.2

= -4

change in output = -4(-100)

= 400 billion dollars

for a $100 tax decrease, output will increase by $100 billion x 4

= $400 billion

3 0

3 years ago

If $ 9 comma 000 is invested in a certain business at the start of the year, the investor will receive $ 2 comma 700 at the end

Marianna [84]

Answer:

PV= $9,355.78

Explanation:

Giving the following information:

If $ 9,000 is invested in a certain business at the start of the year, the investor will receive $ 2,700 at the end of each of the next four years.

Interest rate= 6%.

First, we need to find the final value

FV= {A*[(1+i)^n-1]}/i

A= payment

FV= {2,700*[(1.06^4)-1]}/0.06= 11,811.46

Now, we calculate the present value:

PV= FV/(1+i)^n

PV= 11,811.46/1.06^4= $9,355.78

4 0

3 years ago

Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $35,000,000 of five-year, 12% bon

nlexa [21]

Answer:

Cash proceeds is $37,702,607.23

First premium amortization $214,869.64

Second premium amortization is $225,613.12

First year interest expense is $ 3,759,517.24

Explanation:

The amount of cash proceeds from the bond issue is the pv of the bond using the pv formula,=-pv(rate,nper,pmt,fv)

rate is 10% yield to maturity divided 2 since interest is semi-annual i.e 5%

nper is 5 years multiplied by 2=10

pmt is the semi-annual interest payable by the bond i.e $35,000,000*12%*6/12=$2,100,000

fv is the face value of the bond at $35,000,000

=-pv(5%,10,2100000,35000000)

pv=$37,702,607.23

The amount of premium to be amortized in first semi-annual interest payment:

Interest expense=$$37,702,607.23*10%/2=$1,885,130.36

coupon interest=$35,000,000*12%/2=$2,100,000

Premium amortized=$2,100,000-$1,885,130.36

premium amortized=$214,869.64

The amount of premium to be amortized in second semi-annual interest payment:

interest expense=($37,702,607.23+$2,100,000-$1,885,130.36)*10%/2

=$1,874,386.88

Premium amortized=$2,100,000-$1,874,386.88

premium amortized=$225613.12

Bond expense for the first payment= 37,702,607.23*10%/2

=$1,885,130.362

Bond expense for the first payment= 37,487,737.59 *10%/2

=$ 1,874,386.88

First year bond interest expense= 1,874,386.88+1,885,130.362

=$ 3,759,517.24

Find attached schedule in addition

Download xlsx

4 0

3 years ago