Answer:
$3,850
Explanation:
The computation of the machine's second-year depreciation under the straight-line method is shown below:
= (Cost of the machine - salvage value) ÷ (estimated useful life)
= ($43,500 - $5,000) ÷ (10 years)
= ($38,500) ÷ (10 years)
= $3,850
In this method, the depreciation is the same for all the remaining useful life. Therefore, for the second year also, the depreciation expense is the same i.e $3,850
Answer:
The large application should be produced first by management in order to incorporate short run profit maximizing strategy.
Explanation:
In order to maximize profit in the short run by management, we need to calculate the unit profit per machine hour for each appliances. Using the following formulae, as shown below:
Unit Profit / Machine-hours per unit = Unit Profit per Machine hour
<u>Small Application</u>
40 / 20 = $2 per machine hour
<u>Medium Application</u>
115 / 40 = $2.875 per machine hour
<u>Large Application</u>
340 / 100 = $3.4 per machine hour
As per the above calculation the large application gives the highest profit per machine hour so should be produced first. Afterwards if any machine hour is left then medium application should be produced second and finally, small application third.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
D) inventory
Explanation:
Inventory: Inventory is the stock of the company. It passed through various cycles i.e. raw material, work in progress, finished goods. When the cycle is finished then the product is ready to sell in the market.
Moreover, the recording of the stock is done based on the cost or market value whichever is lower.
In the given question, operation management uses the storage facility. So, the storage facility is used to store the inventory. Here, the storage facility means the warehouse in which the company products are kept for safety measurement.
Thus, all other options are incorrect except D option
Answer:
Explanation:
one-year forward rate for year 2:
(1+4.75%)(1+f)=(1+4.95%)^2
(1+4.75%)(1+f)=1.10145025
(1+F)=1.10145025/1.0475
(1+f)=1.0515
f= 5.15%
one-year forward rate for year 3
:
(1+4.95%)^2 (1+f)=(1+5.25%)^3
(1+4.95%)^2 (1+f)=1.16591345312
(1+f)=1.16591345312
/1.10145025
(1+f)=1.0585
f=5.85%
one-year forward rate for year 4
:
(1+5.25%)^3 (1+f)=(1+5.65%)^4
(1+f)=1.0685
f= 6.85%
