Answer:
the recorded value of the new truck is $135,000
Explanation:
The computation of the recorded value of the new truck is given below;
In the case when the transaction has the commercial substance so the recorded value of the new truck would be equivalent to the invoice price or the fair value i.e. $135,000
Hence, the recorded value of the new truck is $135,000
The same would be considered and relevant
And all other values are to be ignored
Answer:
Increasing total sales by targeting more customers
Explanation:
When a company has a product that can satisfy various segments of customers, they will target as many customers as possible.
This will increase the number of sales that the company makes and in turn will increase revenue.
Targeting a wider customer base is the strategy being used by In-N-Out Burger. They decided to target both the college student community and the artisan build-your-own burger segment.
This startegy can however be more expensive if different advertisements are required to target different segments. Promotion expense will increase.
Answer:
PV= $1,006,512.21
Explanation:
Giving the following information:
Annual payments= $150,000
Discount rate= 8%
Number of periods= 10 years
<u>First, we need to calculate the future value using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {150,000*[(1.08^10) - 1]} / 0.08
FV= $2,172,984.37
<u>Now, we can determine the present value:</u>
PV= FV/(1+i)^n
PV= 2,172,984.37/(1.08^10)
PV= $1,006,512.21
Answer:
Change in Nominal income = 5%
Change in real income = 2.9 %
Explanation:
<em>Real income </em><em>is the amount of basket of goods and services that can be actually purchased . It is the nominal income adjusted for inflation.</em>
<em>Real income = (CPi in base base year/ CPI current year) × Nominal income </em>
Real income for Sabrina
= (100/102) × 105,000
= 102,941.1765
<em>Change in real income</em> = (102,941.1765 -100,000)/100,000
= 2.9 %
<em>Change in Nominal income</em> = (105,000-100,000)/100,000
= 5%
Answer and Explanation:
The computation is shown below;
a. Raw material price variance is
= (standard price - actual price) × actual quantity
= ($10 - $11) × ($69,300 ÷ $11)
= ($10 - $11) × 6,300
= $6,300 unfavorable
b. The raw material usage variance is
= (Standard quantity - actual quantity) × standard price
= (525 × 13 - 6,300) × $10
= $5,250 favorable
In this way it should be calculated
