Answer:
Line extension
Explanation:
Duncan Corp. is applying the strategy of diversifying an existing successful product line by introducing new variations of the product. This approach of adding variety to a existing product aiming to expand its customer base is known as line extension.
Answer:
Lester Company
The accumulated depreciation amounts for buildings $35,000 and for equipment $60,000 were obtained as the differences between the costs and the book values of the assets. The cost of a long-term asset is usually reduced to its book value by the total amount in the accumulated depreciation account. The accumulated depreciation account shows the progressive amounts set aside annually as a write-off of the asset, showing its use over the period in accordance with the accrual concept and matching principle. The accrual concept and matching principle require cost to be matched to the revenue it helps to generate.
Explanation:
Transferred Assets:
Cost Book Value Difference Explanation
Cash $40,000 $40,000 $0
Accounts Receivable 75,000 68,000 $7,000 (doubtful accounts)
Inventory 50,000 50,000 $0
Land 35,000 35,000 $0
Buildings 160,000 125,000 $35,000 (depreciation)
Equipment 240,000 180,000 $60,000 (depreciation)
Answer:<u> Selling Price = $9803.92</u>
Explanation:
Given:
Treasury bill will provide 2% return in every 6 months.
Time = 6 months
Rate of return = 2% per 6 months
Selling Price of Treasury bill = 
Selling Price = 
<u><em>Hence price we would expect a 6-month maturity Treasury bill to sell for is $9803.92</em></u>
Answer:
Activity Rate for Setup = $18
Explanation:
Given
Activity Total Activity-Base Usage Budgeted Activity Cost
Setups 10,000 $180,000
Inspections 24,000 $120,000
Assembly (dlh) 80,000 $400,000
Activity Rate is calculated by: Budget Activity Cost/Activity Base Usage
Where Activity Base (for Setup) = 10,000
Budget Activity Cost = $180,000
So, Activity Rate for Setup = $180,000/10,000
Activity Rate for Setup = $18
Hence, the calculated activity Rate for setups is $18
