The company should accept the special order because it will get an additional profit of $4,000 ($12,500 - $7,500 - $1,000) for the special order. This additional profit amount can be acquired by separating the effect from the special order on each cost and sales of the company's business. The sales should increase by $12,500 ($5 x 2500 unit) amount if the job is taken and the variable cost should increase by $7,500 ($3 x 2500 unit). Lastly, the fixed cost should increase by $1,000 (the new machine).
Answer:
<em><u>Any cost directly attributable to bring the asset into current location and condition necessary for it to be capable of operating it, in the manner intended by the management ( Para 15) 4.1.1. Clause b</u></em>
According to this the cost must be allocated to the purchase of land.
There are three scenarios.
1) if the land with a building is purchased with the intention of demolishing an old building and building a new building then selling it all the costs would be assigned to the purchase of land.
2) if the land is purchased with the building on it and that building is used for a short time and then demolished then the building demolish charges would be expense out.
3)if the land with a building is purchased with the intention of demolishing an old building and building a new building then using it then two different costs accounts of land and building would be used. We would not demolish the old building without the new building being made so the demolish would be added in the incremental costs of the new building.
The given question is of the third scenario therefore
Costs of Land = $ 181,000 + $ 15,600 + $ 1400 + 2600= $ 200,600
Incremental Cost of new building = $ 1600
Answer:
This is because of the ethics guiding the body. For example, ethically, it is wrong for the agent to put his email address in the application in LEAN where it should have been the customer's own. <em>There is a possibility of the identity theft or fraud being committed when such happens.</em>
Explanation:
Answer:
Years to Maturity = 12.53
Explanation:
Coupon Rate = 7.00%
Coupon Periods = 2
Perpetuity Value = 1,041.67
Price = 1,023.46
Discounted Perpetuity Value = 455.17
Yield to Maturity = 6.72%
Annuity Value = 586.49
Discounted Face Value = 436.97
Semiannual Coupon = 35.00
Price 1,023.46
Periods to Maturity = 25.05
Semiannual Yield = 3.36%
Years to Maturity = 12.53
