Answer:
Let Sanguine Wines Ltd. refer to a hypothetical company for the purpose. Following would constitute Sanguine Wines Ltd's variable costs:
- Raw Material or input prices: The raw material or inputs of sanguine wines limited purchases from suppliers such as dried grapes, sugar and the likes. The price of such inputs is prone to seasonal fluctuation and thus variable
- The performance related incentive for employees for number of bottles of wine created, would be variable cost as it would vary with the no of bottles produced.
- Discount allowed to distributors which varies based upon the number of bottles purchased by them.
- Commission paid to wine salesperson which varies with respect to bottles sold.
Answer:
23%
Explanation:
The computation of the average rate is shown below:
But before that following calculations to be done
Annual Depreciation is
= ($132,000 - $16,000) ÷ 10
= $11,600
The Annual Net Income would increase by
= $34,000 - $5,380 - $11,600
= $17,020
Now Average Investment is
= ($132,000 + $16,000) ÷ 2
= $74000
The Average rate of return is
= Increase in Annual Net Income ÷ Average Investment
= $17,020 ÷ $74,000
= 23%
Excessive spare parts inventories, a lack of transferable employee skills, increased support costs.
Answer:
The balance in stockholders' equity at the end of year 2 is $31,000
Explanation:
For computing the balance in stockholder equity at the end of year 2, first, we have to compute the balance for year 1 which is shown below:
Year 1 equity balance = Issue of stock + Net income
= $20,000 + $5,000
= $25,000
Now, year 2 balance would equal to
= Year 1 balance + Net income - Dividend paid
= $25,000 + $10,000 - $4,000
= $31,000
Hence, the balance in stockholders' equity at the end of year 2 is $31,000
Answer:
KTM 350 full-size 450s, the 350 remains the bike for the common man. The KTM 350, along with its blood brother the Husqvarna FC350, appeals to the rank-and-file rider who doesn’t want to deal with 60 horsepower. The 350s have steadily improved over their lifespan and are currently better than ever.
Explanation:
