Answer:
Marginal cost: $13.70
Missing question:
Additional cost from increasing their output by one unit.
Explanation:
The company will inccur only the variable cost as the fixed cost are within the relevant range:
Direct materials $ 6.85
Direct labor $ 3.60
Variable manufacturing overhead $ 1.25
Sales commissions $ 1.50
Variable administrative expense $ 0.50
Total variable cost: $13.70
producing an additional unit will genrate marginal cost for $13.70
Answer:
Attached is the solution:
Answer:
EOQ: 80
order per year: 10
Explanation:
We need to solve for the Economic Order Quantity:
Where:
D = annual demand = 800
S= setup cost = ordering cost = 16
H= Holding Cost = 4
EOQ = 80
Orders per year = 800 demand/ 80 order size= 10
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:
Explanation:
1. Present value = Annuity amount * PVA (n=4;i=10%)
250,000 = Annuity amount*3.16987
Annuity amount = $78,868
2. Present value = Annuity amount * PVA (n=5;i=8%)
250,000 = Annuity amount* 3.99271
Annuity amount = $62,614
3. i = 10%
Annual payments = $51,351
250,000 = 51,351 *X
X = 4.86845
When looking at the table of present value of an ordinary annuity, PVA of 4.86845 and i=10%, ⇒ n = 7 payments
4.
Payments = 104,087
n = 3
250,000 = 104,087*X
X = 2.40184
When looking at the table of present value of an ordinary annuity, PVA of 2.40184 and n=3, ⇒ i = 12%
