Complete Question:
Read the news clip, then answer the following question A Bakery on the Rise Avalon's decision to -is a long-run decision. O A. move to a larger space Up to 500 customers a day line up to buy Avalon's breads, scones, muffins, and coffee. Staffing and management are worries. Avalon now employs 35 and plans to hire 15 more. Its payroll will climb by 30 percent to 40 percent. The new CEO has executed an ambitious agenda that includes the move to a larger space, which will increase the rent from $3,500 to $10,000 a month Source: CNN, March 24, 2008
Avalon's decision to __________ is a long run decision.
A. Move to Larger Space
B. Hire 15 more employees
Answer:
Option A. Move to Larger Space
Explanation:
The decision that alters only a single variable factor is considered as a short run decision. Labor, electricity usage, increased production are examples of variable factors. This means that increase in employees is a short run decision.
On the other hand, decision to increase or decrease the fixed factors are considered as long run decision because it is difficult to alter the decision and if we do so, then we will encounter heavy losses for a long period of time. Long run decision includes selling or purchasing or leasing of property, plant and equipment are considered as fixed factors.
In this case, Avalon is considering to move to a larger space which will result in significant increae in fixed cost. Hence it is fixed factor and is long run decision. Hence Option A is correct here.
Answer: $35,000
Explanation:
The payments of $1,033.34 at the end of every month is a constant amount which makes it an annuity.
Present value of annuity:
= Annuity * (1 - (1 + rate) ^-no. of periods) / rate
Rate needs to be made a monthly rate:
= 4%/12
= 4/12%
= 1,033.34 * ( 1 - ( 1 + 4/12%) ⁻³⁶/ 4/12%
= $35,000
Purchase price = Down payment + Present value of annuity
= 4,000 + 35,000
= $39,000
Answer:
Under the variable costing fixed production overheads are treated as periodic costs and not included in closing stock. Amount $ Calculation Direct materials 1.00 Given Direct labor 2.
Explanation:
Answer:
Sam’s Home Store can enforce the contract against Restore Construction Company
Explanation:
In contract law, only the parties involved in a contract can take action to enforce the contract. In this case Sam' Home Store signed the contract with Restore, so they can enforce it. Any third party beneficiaries from the contract, like United Building Supplies, are not entitled to enforce anything.
Answer:
Amaro Company
Trial Balance
June 30, 2020
Debit Credit
Cash $ 5800 $
Accounts Receivable $ 3000 $
Equipment $17,000 $
Accounts Payable $ $ 8100
Cleland, Capital $ $
15,000
Cleland, Drawing $ 1200 $
Service Revenue $ $
10,000
Salaries Exp $5100 $
<u>Rent Expense $ 1000 $ </u>
<u> Total </u><u> $ 33,100 $ 33,100</u>
Trial balance is a list of all ledger accounts and cash book.
It can be prepared any time during the accounting period.
The debit and credit side of the trial balance are equal.
Expenses are debited . Drawing is an expense therefore it is debited.
