Answer:
Straight-line
depreciation expense for 2016 =40350
depreciation expense for 2017 =40350
Double-declining-balance
depreciation expense for 2016 =105840
depreciation expense for 2017 =63504
Explanation:
Schedule of depreciation expense per year for the machine under the two depreciation methods is attached.
Original Value=264600
Residual Value=22500
Useful life=6
Straight-line
depreciation expense = (Original Value -Residual Value)/Useful life
depreciation expense = 40350
Double-declining-balance
Depreciation rate=1/useful life *100
Depreciation rate 20,00%
Answer:
Consumer surplus is $15.99.
Explanation:
Melanie decided to buy a coat priced $79.95.
When she brought a coat to the sales clerk, she found out that it is on a 20% discount and she has to $15.99 less than the original price.
This means that her consumer surplus is at least $15.99.
The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.
Melanie was willing to pay $79.95. But she actually paid $63.96. The difference between the two is $15.99.
Answer: 2 Apple Pies.
Explanation:
As you may well know, the OPPORTUNITY COST of doing something is the gain you would have gotten if you did an alternative.
In this scenario therefore we will be simply answering that Monica would have done if she wasn't making 1 loaf of bread.
Monica takes 2 hours to bake a loaf of bread and 1 hour to bake a pie.
So what would happen if Monica had 2 hours free because she didn't make a loaf of bread?
If it takes just an hour to make an apple pie, Monica now has 2 spare hours so she will be able to make 2 Pies.
Therefore Monica's opportunity cost of making a loaf of bread is 2 Pies.
Answer:
Sunk; disregarded
Explanation:
Sunk cost is cost that has already been expended and cannot be recovered. It shouldn't be considered when making decisions.
No matter how much one argues, one would not be able to recover the $25. Therefore, it is sunk cost.
I hope my answer helps you