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2 years ago

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PNW, LLC purchased equipment, a building, and land for one price of $6,050,500. The estimated fair values of the equipment, buil

ding, and land are $1,000,000, $7,000,000, and $2,000,000, respectively. At what amount would the company record the building?

1 answer:

umka2103 [35]2 years ago

8 0

Answer:

$4235350.

Explanation:

Given: Estimated fair value of the equipment= $1000000.

Estimated fair value of the building= $7000000.

Estimated fair value of the land= $2000000.

One Purchase price of equipment, building and land= $6050500.

First finding the allocated percentage share of building.

Total amount shared by building, land and equipments= $\$ 1000000+\$7000000+\$ 2000000$

∴ Total amount shared by building, land and equipments= $\$ 10000000$

Allocated percentage share of building= $\frac{Estimated\ fair\ price\ of\ building}{Total\ amount\ shared} \times 100$

⇒ Allocated percentage share of building= $\frac{7000000}{10000000}\times 100$

∴ Allocated percentage share of building= $70\%$

Now, calculating amount would the company record the building.

Amount recorded for the building= $70\% \times \$ 6050500$

⇒ Amount recorded for the building= $\frac{70}{100} \times 6050500$

∴ Amount recorded for the building= $\$ 4235350$ .

Hence, amount that company would record for building is $4235350.

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A mass transit authority charges bus fares of $1.25 during morning rush hours but only $1.00 during late morning non-rush hours.

amm1812

Answer:

The correct answer is more inelastic; more elastic.

Explanation:

Inelastic demand is that demand that is not very sensitive to a change in price. In this way, before a variation in the price the quantity demanded reacts in a less than proportional way. For example, if the price increases by 10% and in response the quantity demanded is reduced by less than 10%, then the demand is said to be inelastic.

The elasticity of demand, also known as the elasticity-price of demand, is defined as the percentage change of the quantity demanded before a percentage change in the price.

An elastic demand is that demand that is sensitive to a change in price. In this way, a small variation in the price causes a more than proportional change in the quantity demanded. Thus, for example, if the price increases by 10% and in response the quantity demanded is reduced by more than 10%, then the demand is said to be elastic.

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2 years ago

Stanford Corporation has four categories of overhead. The expected overhead costs for each category for next year are as follows

aliina [53]

Answer:

Results are below.

Explanation:

a)

<u>First, we need to calculate the predetermined overhead rate:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 2,325,000 / 20,000

Predetermined manufacturing overhead rate= $116.25 per direct labor hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 116.25*375

Allocated MOH= $43,493.75

<u>b)</u>

Total cost= 5,000 + 7,500 + 43,493.75

Total cost= $55,993.75

<u>c)</u>

Selling price= 55,993.75*1.3

Selling price= $72,791.88

<u>d)</u>

<u>First, we need to calculate the activities rate:</u>

<u></u>

Maintenance= 210,000 / 10,000= $21 per machine hour

Materials handling= 90,000 / 2,000= $45 per material move

Setups= 75,000 / 100= $750 per setup

Inspection= 150,000 / 4,000= $37.5 per inspection

Now, we can allocate overhead:

Maintenance= 21*150= 3,150

Materials handling= 45*4= 180

Setups= 750*2= 1,500

Inspection= 37.5*3= 112.5

Total allocated costs= $4,942.5

8 0

1 year ago

Each machine must be run by one of 19 cross-trained workers who are each available 35 hours per week. The plant has 10 type 1 ma

Mrac [35]

Answer:

The Linear programming model is given as below

Profit Function: $P=90X+120Y+150Z$

Constraints:

$2X+2Y+Z\leq 400$

$3X+4Y+6Z\leq 240$

$4X+6Y+5Z\leq 320$

$\dfrac{2X+2Y+Z}{40}\leq 10$

$\dfrac{3X+4Y+6Z}{40}\leq 6$

$\dfrac{4X+6Y+5Z}{40}\leq 8$

$\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19$

Explanation:

As the question is not complete, the complete question is found online and is attached herewith.

Let the number of product 1 to be produced is X, that of product 2 is Y and product 3 is Z

so the maximizing function is the profit function which is given as

$P=90X+120Y+150Z$

Now as the number of hours in a week are 40 and there are a total of 10 type 1 machines so the total number of machine 1 hours are 40*10=400 hours

As from the given table product 1 uses 2 machine hours of machine 1, product 2 uses 2 machine hours of machine 1 and product 3 uses 1 hour of machine 1 so

$2X+2Y+Z\leq 400$

Now as the number of hours in a week are 40 and there are a total of 6 type 2 machines so the total number of machine 2 hours are 40*6=240 hours

As from the given table product 1 uses 3 machine hours of machine 2, product 2 uses 4 machine hours of machine 2 and product 3 uses 6 hour of machine 2 so

$3X+4Y+6Z\leq 240$

Now as the number of hours in a week are 40 and there are a total of 8 type 3 machines so the total number of machine 3 hours are 40*8=320 hours

As from the given table product 1 uses 4 machine hours of machine 3, product 2 uses 6 machine hours of machine 3 and product 3 uses 5 hour of machine 3 so

$4X+6Y+5Z\leq 320$

Now as the machine 1 is used as 2X+2Y+Z in a week and the week is of 40 hours so the number of machines to be used are given as

$\dfrac{2X+2Y+Z}{40}\leq 10$

Now as the machine 2 is used as 3X+4Y+6Z in a week and the week is of 40 hours so the number of machines to be used are given as

$\dfrac{3X+4Y+6Z}{40}\leq 6$

Now as the machine 3 is used as 4X+6Y+5Z in a week and the week is of 40 hours so the number of machines to be used are given as

$\dfrac{4X+6Y+5Z}{40}\leq 8$

Now the workers are available for 35 hours so the worker available at the machine 1 is given as

$\dfrac{2X+2Y+Z}{35}$

That of machine 2 is given as

$\dfrac{3X+4Y+6Z}{35}$

That of machine 3 is given as

$\dfrac{4X+6Y+5Z}{35}$

As the total number of workers is 19 so the constraint is given as

$\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19$

So the Linear programming model is given as below

Profit Function: $P=90X+120Y+150Z$

Constraints:

$2X+2Y+Z\leq 400$

$3X+4Y+6Z\leq 240$

$4X+6Y+5Z\leq 320$

$\dfrac{2X+2Y+Z}{40}\leq 10$

$\dfrac{3X+4Y+6Z}{40}\leq 6$

$\dfrac{4X+6Y+5Z}{40}\leq 8$

$\dfrac{2X+2Y+Z}{35}+\dfrac{3X+4Y+6Z}{35}+\dfrac{4X+6Y+5Z}{35}\leq 19$

4 0

2 years ago

Nadine Chelesvig has patented her invention. She is offering a potential manufacturer two contracts for the exclusive right to m

Alchen [17]

Answer:

The uniform annual sales volume of the product for Nadine to be indifferent between the contracts is 7,772 units per year.

Explanation:

We have to compare the present-value of both plans to answer this question.

The Plan A has a present value of $30,000 as is an inmediate payment.

The Plan B has both an annual payment and a royalty, for a span of ten years.

The present value for Plan B is:

$PV_b=\sum_{i=1}^{10}(1000+0.50q)/(1+i)^i$

This can be simplified with a annuity factor for 10 years, with i=10%.

$A_{10}=\frac{1-(1+i)^{-10}}{i}= \frac{1-1.1^{-10}}{0.10}\\\\A_{10}=\frac{1-0.386}{0.10}=\frac{0.614}{0.10}=6.14$

Then, the PV can be calculated as:

$PV_b=6.14(1,000+0.50q)\\\\PV_b=6,140+3.07q$

To be indifferent, both present values have to be equal:

$PV_b=PV_a\\\\6,140+3.07q=30,000\\\\q=(30,000-6,140)/3.07=23,860/3.07=7,772$

The uniform annual sales volume of the product for Nadine to be indifferent between the contracts is 7,772 units per year.

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2 years ago

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nika2105 [10]

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