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amid [387]
3 years ago
10

The Cromwell Company sold equipment for $35,000. The equipment, which originally cost $120,000 and had an estimated useful life

of 10 years and $20,000 residual value, was depreciated for four years using the straight-line method. Cromwell should report the following on its income statement in the year of sale:
A. A $25,000 gain.
B. A $45,000 loss.
C. A $45,000 gain.
D. All of these answer choices are incorrect.
Business
1 answer:
Alla [95]3 years ago
5 0

Answer:

B

Explanation:

Original Cost -$120,000

Useful life -10 years

Residual Value - $20000

Annual depreciation - $(120,000-20000)/10 = $10,000

Accumulated depreciation for 4 years = 10*4= $40000

Book value at disposal = $120,000-$40000= $80000

Sales value = $35,000

Loss on disposal = $80,000-$35000= $45,000

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What environmental force did Unibic use in segmenting its market
larisa86 [58]

Explanation:

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businessoperations managementoperations management questions and answersunibic india: from fastest growing niche cookie brand to a challenger?in 2007, lighthouse funds acquired a 25% stake in unibic from unibic australia for rs. 200 million. in 2010, unibic australia started making losses and wanted to withdraw from the indian market. at that time, unibic operated solely in the premium, high-margin cookies segment in india, with

Question: Unibic India: From Fastest Growing Niche Cookie Brand To A Challenger?In 2007, Lighthouse Funds Acquired A 25% Stake In Unibic From Unibic Australia For Rs. 200 Million. In 2010, Unibic Australia Started Making Losses And Wanted To Withdraw From The Indian Market. At That Time, Unibic Operated Solely In The Premium, High-Margin Cookies Segment In India, With

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Unibic India: From Fastest Growing Niche Cookie Brand to a Challenger?

In 2007, Lighthouse Funds acquired a 25% stake in Unibic from Unibic Australia for Rs. 200 million. In 2010, Unibic Australia started making losses and wanted to withdraw from the Indian market. At that time, Unibic operated solely in the premium, high-margin cookies segment in India, with a share of around 8%. It had a market presence primarily in south India and was exporting to the Middle East and Hong Kong. It had strategic alliances to make cookies for various private players. However, it was not yet making profits and was cash- strapped...

Over the next few years, Unibic grew rapidly. Its growth was primarily fueled by the changes sweeping through the Indian biscuit industry, wherein glucose biscuits that had dominated the market, gradually lost out to cream biscuits and cookies. The reasons for the shift included rising disposable incomes leading to an increase in consumption of premium biscuits; a larger number of manufacturing facilities of premium biscuits; growing health awareness; innovation bringing in attractive new products; rising affordability of cookies; and increase in eye-catching packaging...

Over the years, Unibic regularly introduced fresh and unique flavors, ultimately producing over 30 variants of cookies. Its products could be broadly categorized into chocolate, butter, milk, savory, and health. The company considered its target market to be between the ages of 14 and 40. It continued its efforts at innovation and produced new products which would appeal to its target market...

In 2015, Unibic had used celebrity endorsement by signing on south Indian actor Shruti Hassan, for over a year. It stated that it wanted someone who was relevant and would give the brand a boost to get to the numbers it wanted in the South...

Unibic didn’t advertise much in print media; TV remained the company’s core focus and got the largest chunk of its advertising spend, followed by digital and OOH. Instead of following the traditional strategy of having a similar marketing campaign across markets, Unibic employed a unique strategy in each market, thereby playing to its strengths in each market while keeping in mind the market conditions and consumption patterns...

From 2019 onward, Unibic started feeling the heat of the economic slowdown in India. The Indian economic slowdown of 2019 led to a serious and continuing decline in the country’s real estate, automobile and construction sectors and in overall consumption demand. The second quarter (July- September) of the financial year (April 2019-March 2020) witnessed a drastic fall in the gross domestic product (GDP) growth rate to 4.5%. The main reasons attributed to the fall in the GDP growth rate were – contraction in manufacturing activity, weakened investments, and lower consumption demand.

As of 2020, Unibic had the largest wire cut cookie manufacturing plant in India. The plant had the capability to manufacture 100 tonnes of cookies each day, with five production lines. While it used 98% of its production capability to produce its own brand, the rest was used to manufacture for private label brands – six in India and 10 across the world. It had annual revenu7 es of Rs. 5 billion. It also exported its products to more than 21 countries including across Australia, North America, the UK, and Europe, Asia, the Middle East, and New Zealand. It derived 45% of its earnings from the south of India.

4 0
2 years ago
Recount the methods used to assign costs to inventory and cost of goods sold under both a perpetual and a periodic system. (Chec
jekas [21]

The methods used to assign costs to inventory and cost of goods sold under both a perpetual and a period system are:

a. Weighted average

b. Specific identification

c. First-in, first-out

d. Last-in, first-out

<h3>What are the inventory methods?</h3>

For most businesses, the four inventory methods used for assigning costs to the ending inventory and the cost of goods sold for the period are the Weighted average, Specific identification, First-in, first-out, and Last-in, first-out.

Thus, the inventory methods do not include First-in, last-out Last-in, last-out.

Learn more about inventory methods at brainly.com/question/6640325

3 0
2 years ago
Which statement best summarizes the law of demand ?
miskamm [114]

Answer:it’s D

Explanation: Just answered it

5 0
3 years ago
Jackson, Inc. produces two different products (Product 5 and Product Z) using two different activities:Machining, which uses mac
SSSSS [86.1K]

Answer:

Inspection costs allocated= $12,250

Explanation:

Giving the following information:

The cost of Machining is $255,000, while the cost of Inspection is $35,000. Product 5 uses 33% of total machine hours and 65% of total batches.

<u>First, we need to determine the allocation rate of Inspection for Product Z:</u>

<u></u>

Allocation rate Product Z= 1 - Product 5 use of batches

Allocation rate Product Z= 1 - 0.65

Allocation rate Product Z= 0.35

<u>Now, we can allocate Inspection costs:</u>

Inspection costs allocated= 35,000*0.35

Inspection costs allocated= $12,250

7 0
3 years ago
Yates Corp. wants to develop a cost equation for its administrative costs. The controller believes the appropriate cost driver i
Zinaida [17]

Answer:

Total cost= 2,145 + (0.63462*x)

Explanation:

Giving the following information:

Month - Units Produced - Administrative Costs

January: 32,500 units $24,288

February: 37,700 units $27,720

March: 24,700 units  $17,820

April: 40,300 units $30,360

May: 49,400 units $37,290

June: 42,900 units $29,040

July: 53,300 units $32,670

August: 45,500 units $30,030

September: 26,000 units $20,460

October: 48,100 units $34,320

November: 61,100 units $40,920

December: 54,600 units $36,630

To determine the equation for administrative costs using the high-low method, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (40,920 - 17,820) / (61,100 - 24,700)= $0.63462 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 40,920 - (0.63462*61,100)= $2,145

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 17,820 - (0.63462*24,700)=  $2,145

administrative costs formula:

Total cost= 2,145 + (0.63462*x)

4 0
3 years ago
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