Answer:
ECONOMIES OF SCOPE
Explanation:
Economies of Scope concept implies producing different , but related products will reduce the per unit cost of production of the firm (relatively lesser than if the products would have been produced separately.
This happens because of backward & forward linkages in interrelated but different goods' inputs & outputs .
Ex : In this case, another byproduct - molasses has been produced of waste from sugar production, which could have otherwise been purchased input.
Economies of Production is cost reduction due to quantity & not variety production. Diseconomies of Scale & Diseconomies of Scope are their opposite phenomenas leading to cost rise . So , none of these 3 are apt.
Answer:
$4,714
Explanation:
Given that,
Cost of equipment = $58,750
Equipment was subject to depreciation of $6,964 for 2018 and 2019.
Sale value of equipment = $56,500
Net book value = Cost of equipment - Depreciation
= $58,750 - $6,964
= $51,786
Capital gain = Net book value - Sale value
= $51,786 - $56,500
= $4,714
Therefore, the Marquez recognize a gain of $4,714 on the sale of the equipment.
<span>Yes. By investing $180,000 and having a revenues of $198,000, the company would earn $18,000 (before tax) from this project investment. Assuming that the $180,000 investment already factored in time/labor and the projected $190,000 revenues is very likely to occur.</span>
