I think that answer is 1.5
Technically you could live in a tree house if you wanted to.
Answer:
$22,780
Explanation:
The computation of the total amount of indirect manufacturing cost incurred is shown below:
= Variable manufacturing overhead + fixed manufacturing overhead
where,
Variable manufacturing overhead = Number of units produced × variable manufacturing overhead per unit
= 4,600 units × $1.30
= $5,980
Fixed manufacturing overhead = Number of units produced and sold × fixed manufacturing overhead per unit
= 5,600 units × $3
= $16,800
So, the total indirect manufacturing cost is
= $5,980 + $16,800
= $22,780
Answer:No, Lake source cooling is not economically advantageous.
Explanation:
The cost of the lake source cooling is S30 greater than the cost of the refrigerator.
Though the lakes source option will bring additional income of S2400 for ten years this will only reduce it's cost to S2900 and this is still higher than the total cost of the refrigerator option of S2,120.
The straight line depreciation option on both options will not change this decision since it will have the same effect on both options.
