Answer:
Depreciation of truck if it delivers 30,000 cubic yard of concrete in one year 200,000 / 100,000 * 30,000 = $60,000
Cost of raw material for 2,000 cubic yard (2,000 * $25 )= $50,000
Explanation:
Depreciation is allocation of an assets cost over its useful life. Depreciation expense is considered as a tax shield. The larger the depreciation expense, the lower will be the taxable income. Smith Concrete company uses concrete material as a base for truck depreciation. Truck depreciation cost is fixed cost. The raw material cost of concrete is variable.
If the question is asking whether the statement is true or
false, the answer is true. A concurrent condition is considered to be a
condition that likely to occur or perform when paired or associated with
another condition in which is similar in the statement above where each party’s
performance is conditioned on the performance of the other.
Answer and Explanation:
The computation of the volume necessary for each location is as follows;
a) Volume required for break even at location A
= ($5,400 + $10,000) ÷ ($2.70 - $1.90)
= 19,250 units
Volume required for break even at location B
= ($5,700 + $10,000) ÷ ($2.70 - $1.90)
= 19,625 units
Volume required for break even at location C
= ($5,950 + $10,000) ÷ ($2.70 - $1.90)
= 19,938 units
Answer:
The Money Market.
Explanation:
The Financial markets can be broadly classified into two categories: Capital Market and Money Market. This classification is based on the maturity period of Financial instruments that trade in these markets. Lets study these two types of markets in detail:
<u>Money Market</u>
It is a market in which securities with a maturity of less than one year are traded. This is highly liquid market since the investors are repaid with the invested amount within one year of time. Due to a short duration, the instruments traded in this market are exposed to lower interest rate risk. A popular example of money market instrument can be Treasury Bills.
<u>Capital Market</u>
The securities that are traded in capital market are long-term and have a maturity of more than one year. The securities of capital market offer beefy returns to the investors due to higher duration and interest rate risks. If the security is of equity nature, then the market is termed as stock market. And if the traded security is bond, then we refer to it as a bond market. Examples of capital market instruments are shares and bonds.
The three conditions that must exist in order for a market to be perfectly competitive include: 1. a large number of vendors and customers (buyers and sellers), 2. the vendors must be selling identical products and finally, 3. new vendors must be able to freely enter the market.
