An appliance store sells 500 units of a particular type of dishwasher each year. The demand for this product is essentially cons
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Answer:
$2,250
Explanation:
Given;
Cost of machine = $100,000
Residual value = $10,000
Useful life = 10 years
Annual depreciation = (Cost - Residual value ) ÷ useful life
= ($100,000 - $10,000 ) ÷ 10
= $90,000 ÷ 10
= $9,000 per year
Duration from October 1, 2018 to December 31, 2018 in year = years
= 0.25 year
therefore,
Depreciation expense for the year ended December 31, 2018
= Annual depreciation × Duration
= $9,000 × 0.25
= $2,250
Answer:
$10,400
Explanation:
Given that,
Sales (2,000 units) = $ 40,000
Variable expenses = $24,000
Contribution margin = 16,000
Fixed expenses = 11,200
Net operating income = $ 4,800
If the selling price increases by $4 per unit and the sales volume decreases by 200 units.
Sales:
= Number of units sold × Selling price per unit
= (2,000 - 200) × ($20 + $4)
= 1,800 × $24
= $43,200
Variable expenses:
= $21,600
Contribution margin:
= Sales - Variable cost
= $43,200 - $21,600
= $21,600
Net operating income:
= Contribution margin - Fixed expenses
= $21,600 - $11,200
= $10,400