Answer:
Longhorn Goodwill=$7920
Longhorn should record goodwill on this purchase of $7920.
Explanation:
Longhorn Goodwill=Price Paid to Acquire - Total fair Assets
Total Fair Assets=Fair Value of Assets-Fair Value if Liabilities
Total Fair Assets= $89,900-$15,200
Total Fair Assets= $74,700
Longhorn Goodwill=Price Paid to Acquire - Total fair Assets
Longhorn Goodwill=$82,620-$74,700
Longhorn Goodwill=$7920
Longhorn should record goodwill on this purchase of $7920.
Answer:
<u>Product</u> <u>Quantity </u> <u>LCM</u> <u>Total</u>
Model A 300 $125 $37,500
Model B 500 $90 $45,00
Model C 150 $59 $8,850
Model D 800 $115 $92,000
Model E 400 $140 $56,000
Explanation:
Product Quantity Cost Per Unit Market Value (NRV)
Class 1:
Model A 300 $140 <u>$125 </u>
Model B 500 <u>$90</u> $112
Model C 150 $60 <u>$59</u>
Class 2:
Model D 800 $120 <u>$115</u>
Model E 400 <u>$140</u> $145
When a company records inventory at lower of cost or market value, it will record its inventory at whichever price is lower. E.g. if NRV is lower than purchase cost, then inventory is recorded at NRV. If purchase cost is lower than NRV, then inventory will be recorded at purchase cost.
Models B and E should be recorded at purchase cost while models A, C and D should be recorded at NRV.
Product Quantity LCM Total
Class 1:
Model A 300 $125 $37,500
Model B 500 $90 $45,00
Model C 150 $59 $8,850
Class 2:
Model D 800 $115 $92,000
Model E 400 $140 $56,000
We would expect the total utility of diamonds to be <u>lower</u> than the total utility of water and the marginal utility of diamonds to be <u>higher</u> than the marginal utility of water.
<u>Explanation:</u>
The diamond-water paradox presents the puzzling predictions: while water is definitely essential to human existence because without water life can not function, the water price is relatively low. Alternatively, diamonds are actually far less essential to human life, but diamond prices are considerably higher. Thus the effectiveness obtained from water is evidently very high while the utility extracted from diamonds is considerably less.
Here total utility is the aggregate satisfaction of desires and needs gathered from the consumption of a good while marginal utility is the additional satisfaction of desires and needs received from the consumption of one additional unit of good.
The relationship between cost, revenue and profit can be presented using the formula:
Profit = Revenue - Cost
However, in the table given, the number of bikes produces varies. We cannot properly compare the profits per day. To be consistent, let us determine the profit per unit of bike produced. Simply divide the profit with the number of bikes produced (1st column). After you see the results, we can see that the highest profit is $17.5 per unit of bike produced. Therefore, the maximum profit can be attained when 4 bikes are produced each day.
Answer:
Considering the allocate fixed cost, it would not be a good option.
It will generate a financial disadvantage of 22,950
Explanation:
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Fixed overhead; 38 x 1800 = 68,400
There is a portion of 35,550 fixed cost which is tracable to the real wheel assembly line thus, will be eliminated.
But 32,850 would not.
Considering this, it would not be a good option to stop the assembly line and purchase the component