Answer:
A) $12,528
Explanation:
We should consider the rent payment as an annuity. Because we are paying, it should be considered the present value of an annuity.
C 2,468
time 6
rate 0.05
PV $12,526.8080
We are asked for the closet option, so we have to chose A) 12,528
Answer:
If a foreign government hires an American consulting firm to help the country's textile industry improve production operations, the contract is commercial, and if the foreign government refuses to pay, the consulting firm may sue the government in American courts.
False
Explanation:
Any company could be sued at anywhere so far there is bridge of agreement or contract, with the analogy above such consulting American company would be sued but in the above case, a consulting American firm can not sue themselves unless someone in the company sue the American consulting firm
Answer:
<u>d) objective research</u>
<u>Explanation:</u>
We need to note that mention was made that the research was "<em>Carefully controlled." </em>Been carefully controlled shows that the research has an objective.
Furthermore, measuring the reactions of consumers at different salt levels makes the research factual and thus a decision could be made from the findings.
Answer:
Explanation:
Last year Current year
Selling Price 10 10
Varaible Price 5 6
Contribution Margin 5 4
Break even is the point where total cost is equal to total revenue mean no profit and loss.
company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.
Break Even using FIFO method : first In first out system
Fix Cost = 86000
contribution from opening units(6000*5) = 30000
Remaining Fix cost that should be Covered from
current year products = 56000
Units to be sold for break-even ( 56000/4) = 14000
so we have break even units 6000+14000 = 20000
Fix cost = -86000
Opening 6000*5 = 30000
Current 14000*4 = 56000
Profit = 0
Break Even using LIFO method : Last in first out
Fix Cost = 86000
Break even = Fix Cost / Contribution margin
Break even = 86000/4 =21500
current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.
Answer:
The overhead application rate is 1.8
Explanation:
In the question both the estimated and actual overhead cost , material and labor cost are provided -
ESTIMATED ACTUAL
Overhead cost $396,000 $418,000
Material cost $410,000 $413,200
Direct cost $220,000 $224,000
Overhead application rate can be calculated by dividing the total budgeted overhead cost by direct labor cost.
= Budgeted overhead cost / direct labor cost
= $396,000 / $220,000
= 1.8
