Answer:
The employees in Mexico can either produce 2 cars or 50 bushels of wheat.
This means that the opportunity cost of producing 50 bushels of wheat is 2 cars.
For 1 bushel of wheat therefore;
= 2/50
= 0.04 cars
Opportunity cost of producing a car in Mexico will be;
= 50/2
= 25 bushels of wheat.
The opportunity cost of producing a car in Mexico is 25 bushels of wheat, and the opportunity cost of producing a bushel of wheat in Mexico is 0.04 cars.
Answer:
The dollar amount that should be credited to Allowance for Uncollectible Accounts at year end is $ 12,100
Explanation:
Providing allowance for doubtful debts
A provision is made for the debts which are likely to be uncollectable by a company.This amount is used to adjast the Trade Receivable balances to show a faithful representation of assets a beusiness has at end of year.
Calculations
<em>December 31, 2018 Arundel Company`s Allowance for Doubtful debts is calculated as follows</em>
Credit Sales × % of allowed provision
$805,000 × 2.0%
$16,100
<em>Adjastment to be done in Allowance for Doubtful Debts Account:</em>
<em>Hint : Open Allowance for Doubtful Debts T Account:</em>
<u>Credits :</u>
Opening Balances 4,000
Balancing Figure (Profit and Loss) 12,100
Totals 16,100
<u>Debit:</u>
Closing Balance 16,100
Totals 16,100
Answer:
b. $22.75
Explanation:
We know that
Contribution margin per unit= Sales price per unit - variable cost per unit
Since the selling price is $35
And, the contribution margin is 35%
Therefore, the contribution margin per unit would be
= $35 × 35 per cent
= $12.25
Now add these figures in the formula above.
Hence, the value would be equal to
= $35 - $12.25
= $22.75
The inventory and labor costs are included in the variable cost
Answer:
1. Dividend Payment Requirements:
a. Common stock dividend rates are not fixed, unlike the preferred stock dividends. They are not cumulative like cumulative preferred stock. They are only paid when the directors declare them.
b. Preferred stockholders usually have a fixed rate of dividend. They have preference over common stockholders in dividend payments. Some preferred stockholders enjoy cumulative dividends, unlike common stockholders.
2. Common stockholders expect higher dividends than the preferred stockholders because they bear the residual business risks associated with the company.
Explanation:
Dividend income results when management declares it to be paid to the stockholders. They are usually paid out of earned income. The discretion to declare dividends lies solely with management. On the other hand, stockholders can decide to take advantage of the movements in stock prices at the stock exchange by earning capital gains through selling their shares. This income is not at the discretion of management insofar as the entity is being run profitably.
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