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Sati [7]
2 years ago
6

last year, jarod left a job that pays $80,000 to run his own bike repair shop. jarod’s shop charges $65 for a repair, and last y

ear the shop performed 4,000 repairs. jarod’s production costs for the year included rent, wages, and equipment. jarod spent $60,000 on rent and $120,000 on wages for his employees. jarod keeps whatever profit the shop earns but does not pay himself an official wage. jarod used $25,000 of his savings to buy a machine for the business. his savings were earning an annual interest rate of 6 percent.
Business
1 answer:
irinina [24]2 years ago
6 0

The accounting profit of Jarod based on the information regarding rent, wages, etc given will be $55000.

It should be noted they the formula for calculating accounting profit will be:

= Total revenue - Explicit cost

Total revenue will be:

= $65 × 4000

= $260,000

Explicit cost is the direct cost that a business spends. This will be:

= $60000 + $120000 + $25000

= $205,000

Therefore, the accounting profit will be:

= $260000 - $205000

= $55,000

The accounting profit is $55000.

Read related link on:

brainly.com/question/25373796

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On January 1, 2020, Cougar Sales, Inc. issued $15,000 in bonds for $14,700. They were 6-year bonds with a stated rate of 9%, and
PSYCHO15rus [73]

Answer:

$700

Explanation:

If a bond is issued at a lower price than the face value of the bond, then the bond is issued on the discount. This discount is amortized over the bond's life. This amortization will be expensed as Interest Expense.

Discount = Face value - Issuance price = $15,000 - $14,700 = $300

Bond's Life = 6 years

Amortization of discount = $300 / 6 = $50 annually = $25 semiannually

Coupon Payment = Face Value x coupon Rate = $15,000 x 9% = $1.350 annually = $675 semiannually

Interest Expense Includes both the coupon payment and discount amortization for the period.

Interest Expense = $675 + $25 = $700

4 0
2 years ago
During March, the production department of a process operations system completed and transferred to finished goods 25,000 units
djverab [1.8K]

Answer:

D. 165,000 materials; 144,000 conversion.

Explanation:

The concept of equivalent units measures the number of units in terms of percentage completion in the inputs introduced to outputs.

Calculation of  the number of equivalent units with respect to both materials and conversion respectively for March.

<u>Materials</u>

Units Completed and Transferred (135,000 × 100%) = 135,000

Units in Ending Work in Process (30,000 × 100%)     =  30,000

Total Equivalent units of Production                           = 165,000

<u>Materials</u>

Units Completed and Transferred (135,000 × 100%) = 135,000

Units in Ending Work in Process (30,000 × 30%)      =     9,000

Total Equivalent units of Production                           = 144,000

Conclusion :

The equivalent units of production are 165,000 materials; 144,000 conversion.

5 0
3 years ago
Read 2 more answers
Bennett Co. has a potential new project that is expected to generate annual revenues of $262,100, with variable costs of $144,00
swat32

Answer:

Operating cash flow= $29,886

Explanation:

Giving the following information:

Sales= $262,100

Total variable cost= $144,000

Total fixed costs= $61,300.

Annual interest expense of $24,500. The annual depreciation is $25,200 and the tax rate is 34 percent.

<u>We need to determine the operating cash flow:</u>

Sales= 262,100

Total variable cost= (144,000)

Contribution margin= 118,100

Total fixed costs= (61,300)

Depreciation= (25,200)

Interest= (24,500)

EBIT= 7,100

Tax= (7,100*0.34)= (2,414)

Depreciation= 25,200

Operating cash flow= 29,886

7 0
3 years ago
What does it mean if a company has a debt ratio of 101.5%?
7nadin3 [17]

Explanation:

Debt ratio is basically the ratio between the total debts and the total assets of a company. It shows the percentage of total debts of the company in accordance or in comparison of the total assets. If the debt ratio is high, it means the company has more liabilities than the assets. Higher debt ratio may lead a company towards default.

In this question, 101.5% debt ratio means the total liabilities of the company are 1.5% more than the total assets of the company. This shows that the company's debt ratio is high. Liabilities are more than the assets. In this situation, a company is considered at a risk if precautionary measures are not taken immediately.

6 0
3 years ago
Gino, a team leader at a business process outsourcing firm, tells the human resource department that a significant share of his
Olegator [25]

Answer:

The department's recommendations would most likely be based on Performance management

Explanation:

Performance management is undertaken to ensure that the activities that are performed are as per the requirements of the organization. It evaluates the performance. It can be of an employee or a department.

Here the actual performance is compared with the standard performance and if any deviation arises then steps are taken to overcome it. Like in this example department is providing training on time management to improve performance.

6 0
3 years ago
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