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melamori03 [73]
2 years ago
10

Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $127,000.

The machine's useful life is estimated to be 4 years, or 380.000 units of product, with a $3,000 salvage value During its second year, the machine produces 76,000 units of product. Determine the machines' second year depreciation under the straight-line method. a. $24, 800. b. $31,000.c. $31, 750.d. $25, 400. e. $32, 500.
Business
1 answer:
Brut [27]2 years ago
6 0

Answer:

b. $31,000

Explanation:

The computation of the depreciation expense using the straight-line method for the second year is shown below:

= (Original cost - residual value) ÷ (useful life)  

= ($127,000- $3,000) ÷ (4 years)  

= ($124,000) ÷ (4 years)  

= $31,000

Hence, the correct option is b. $31,000

The units are to be ignored as the method i.e used is straight line so the same is to be considered

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Colortrigon Company makes a variety of paper products. One product is 30 lb copier paper, packaged 3,000 sheets to a box. One bo
Valentin [98]

Answer:

d.Yes, income will increase by $30,000

Explanation:

The net profit from this order = Revenue – all expense related = number of unit sold x (price per unit – cost per unit) =  

6,000 boxes x (price $15 – Direct materials $6 - Direct labor $2 - Variable overhead $2 - Fixed overhead $3 but avoidable) = 6000 x (15-6-2-2-0) = $30,000

8 0
2 years ago
LKM, Inc. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 6.5 percent coupon
pychu [463]

Answer:

6.75%

Explanation:

Price of bonds is equal to their par value when coupon rates match with yields to maturity. The 20-year bond with semiannual coupon payments is going to have 40 coupons payment plus 1 par value payment. Let formulate the price of this bond as below:

Bond price = [Par value x (Coupon rate/2)]/[1 + (YTM/2)] + [Par value x (Coupon rate/2)]/[1 + (YTM/2)]^2 + ...+ [Par value x (Coupon rate/2) + Par value]/[1 + (YTM/2)]^40, or:

972.78 = [1,000 x (6.5%/2)]/[1 + (YTM/2)] + [1,000 x (6.5%/2)]/[1 + (YTM/2)]^2 + ...+ [1,000 x (6.5%/2) + 1,000]/[1 + (YTM/2)]^40

Solve the equation we get YTM = 6.75%.

So, the company should set 6.75% coupon rate on its new bonds if it wants to sell them at par.

4 0
2 years ago
marketing student is estimating the average amount of money that students at a large university spent on sporting events last ye
SCORPION-xisa [38]

Answer:

Option A

Explanation:

We can be 90% confident that the mean amount of money spent at sporting events last year by all the students at this university is between $ 217 and $ 677.

The interval offered by option A, is the same result obtained by the student on his research. By the definition the confidence interval permit us to conclude that the mean of the population would be on that interval.

7 0
2 years ago
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Keith, a county health department worker, is creating a presentation about safe food handling practices for local restaurant wor
tatyana61 [14]

Answer:

the favorite foods of everyone in the audience

health issues that affect a majority of the audience

Explanation:

The presentation must include personal relevant data for the audience otherwise they won’t feel connected to the subject. Having this in mind Keith best approach in her presentation is to be close regarding food preferences and link them to good preparation practices in order to prevent common diseases.

5 0
2 years ago
Rockwood International needs to make risky decisions on a daily basis. Therefore, its managers are likely to
gizmo_the_mogwai [7]

Answer:

Centralize decision making

Explanation:

From the question we are informed about Rockwood International who needs to make risky decisions on a daily basis. Therefore, its managers are likely to Centralize decision making.

Centralization can be regarded as setup whereby decision-making powers are been concentrated or given to few leaders that are on top of the organizational structure. Decisions making are been carried out at the top then communicated to lower-level managers so that implementation can take place.

5 0
2 years ago
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