1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
babunello [35]
2 years ago
7

iSooky has a spotter truck with a book value of $52,000 and a remaining useful life of 5 years. At the end of the five years the

spotter truck will have a zero salvage value. The market value of the spotter truck is currently $38,000. iSooky can purchase a new spotter truck for $132,000 and receive $32,200 in return for trading in its old spotter truck. The new spotter truck will reduce variable manufacturing costs by $26,200 per year over the five-year life of the new spotter truck. The total increase or decrease in income by replacing the current spotter truck with the new truck (ignoring the time value of money) is:
Business
1 answer:
Lina20 [59]2 years ago
6 0

Answer:

Increase by $31,200

Explanation:

                                         Retain Truck    Replace Truck   Net Increase

Sale price of old Truck     $0                       $32,200            $32,200

Cost of New Truck            $0                     -$132,000          -$132,000

Variable manuf. cost        -$131,000            $0                      $131,000

Net Income                      -$131,000          -$99,800            $31,200

The total increase in income by replacing the old Truck is $31,200.

You might be interested in
Two​ countries, A and B​, both are currently in recession. The values of the MPS for A and B are 0.1 and 0.5 respectively. The g
aksik [14]

Answer:

Explanation:

The policy of tax cut will be less effective in country B than in country A since the value of the tax multiplier is lower in country B.

The multiplier effect refers to the increase in final income arising from any new injections.

Calculating the Multiplier Effect for a simple economy

k = 1/MPS

A = 1/0.1 =10

B= 1/.5=2

3 0
3 years ago
The additional dining space will occupy space next to Olaf’s that was recently rented to a tenant. By claiming the space for the
Illusion [34]

Answer:

$12,146

Explanation:

The computation of present value of this opportunity cost is shown below:-

Net After tax Operating Profit Per month = Rent space per month × Profit margin on the renting the space percentage

= $1,000 × 30%

= $300

Project is for 4 Years

Total months = 4 × 12

= 48 Months

Interest Rate Per month = 9% ÷ 12

= 0.75%

As per the question the Rent is Received at the start of the month

So Present Value of this opportunity cost = $300 (1 + PVAF (0.75%,47))

= $300 × ( 1 + 39.486)

= $12,145.85

= $12,146

3 0
3 years ago
Suver Corporation has a standard costing system. The following data are available for June
Anettt [7]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The actual quantity of direct materials purchased 20,000 pounds.

standard price of direct materials $ 7.00 per pound.

Material price variance $ 5,000 Unfavorable.

Material quantity variance S 2,500 Favorable.

Direct material price variance= (standard price - actual price)*actual quantity

-5,000= (7 - AP)*20,000

5,000= 140,000 - 20,000AP

20,000= 145,000AP

Actual price= 7.25

7 0
3 years ago
Marilyn Simms died with a $200,000 life insurance policy. Her husband, Jack, was the primary beneficiary and their children, Mim
loris [4]

Answer:

a) $200,000 to Jack

Explanation:

Data provided in the question  

Life insurance policy amount of Marilyn Simms  = $200,000

The primary beneficiary = Jack

The contingent beneficiaries = Their children

Now, the distribution of the policy could be taken by only Jack as he is her husband plus he is also a primary benefit of her life insurance policy,

So, the whole amount i.e $200,000 is distributed to Jack

8 0
3 years ago
In the 2016 presidential campaign, republicans wanted to focus on stagnant wages, while democrats wanted to talk about declining
alexgriva [62]
The answer is selective exposure

6 0
2 years ago
Read 2 more answers
Other questions:
  • Which of the following situations would be considered cyclical unemployment? Choose one or more: A. A typewriter repair shop clo
    8·1 answer
  • Target purchases home goods made by a supplier in China. Target's stores in the United States sell 200,000 units of home goods e
    12·1 answer
  • Convergence property implies that on the delivery day,
    9·1 answer
  • What is marketing mix definition
    15·1 answer
  • LCI Cable Company grants 2.9 million performance stock options to key executives at January 1, 2021. The options entitle executi
    7·1 answer
  • Although Scott, an African American, was more qualified than Bernardo, a Hispanic American, Bernardo was hired instead of Scott
    8·1 answer
  • If a project has a net present value equal to zero, then:_______.
    9·1 answer
  • If someone is discriminated by a law based on gender, the burden is on the state to show that the law is substantially related t
    14·2 answers
  • Which is an example of a land-use law?
    5·1 answer
  • Products that would be used in calculating gdp include:.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!