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2 years ago

Using the formula

Business

1 answer:

cestrela7 [59]2 years ago

7 0

Answer:

Price elasticity = -2.5385

Explanation:

This means that an increase in the price has a negative impact in the quantity of the products demanded.

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For $20 million, Ross Adams Mining acquired a tract of land containing a large deposit of anthracite coal. Ross Adams believes t

ziro4ka [17]

Answer:

$6.25 per ton of coal

Explanation:

the depletion base = purchase cost + restoration costs

purchase cost = $20 million
restoration costs = $6 million

depletion base = $26,000,000

depletion rate per ton of coal = (depletion base - salvage value) / estimated reserves = ($26,000,000 - $1,000,000) / 4,000,000 = $6.25 per ton of coal

The depletion rate follows the same concepts as depreciation of fixed assets, but instead of using a fixed asset, you are extracting materials and decreasing the value of the deposits.

8 0

2 years ago

g The following facts are known: • The total pounds needed for production are 2 times the units to be produced. • The desired en

OLEGan [10]

Answer and Explanation:

The Preparation of direct material budget is shown below:-

Direct Material budget

Particulars Amount

Units to be produced $90,000 Y

Material per unit 2

Total pounds needed for

production M $180,000 2Y

Add: Desired ending Direct

Material Inventory 20% $36,000 (.2 × 2Y = .4Y)

Total Material requirement $216,000 (2.4Y )

Less: beginning Raw material

Inventory $9,000 (.1Y)

Material to be purchased

Account $207,000 (2.3Y)

Cost per pound C $5

Total cost of direct Material

Purchases A $1,035,000

2Y + .4Y - .1Y = $207,000

Y = $207,000 ÷ 2.3 $90,000

8 0

2 years ago

Which of the following is an example of a variable expense?

Irina-Kira [14]

Answer:

Credit card and bank fees. Hourly wages and direct labor. Shipping costs. Raw materials.

Explanation:

8 0

2 years ago

On January 1, 2019, Shields, Inc., issued $800,000 of 9%, 20-year bonds for $879,172, yielding a market (yield) rate of 8%. Semi

Ghella [55]

Answer:

cash 879,172 debit

bonds payble 800,000 credit

premium on BP 79,127 credit

--to record issuance--

Interest expense 35,166.84 debit

premium on BP 833.16 debit

cash 36,000 credit

--to record first interest payment--

Interest expense 35133.52 debit

premium on BP 866.48 debit

cash 36,000 credit

--to record second interest payment--

Financial Statement effect:

Cash flow:

financing:

proceed from bonds 879,172

interest paid 72,000

Net income

interest expense 35,133.52 + 35,166.84 = 70.250,36

Balance sheet

Bonds payable 800,000

Premium on Bonds 77,471

Explanation:

The price will be the discounted future coupon and maturity payment at market rate

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 36,000.000 (800,000 x 9% x 1/2)

time 40 ( 20 years x 2)

rate 0.04 (8% x 1/2)

$36000 \times \frac{1-(1+0.04)^{-40} }{0.04} = PV\\$

PV $712,539.8598

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 800,000.00

time 40.00

rate 0.04

$\frac{800000}{(1 + 0.04)^{40} } = PV$

PV 166,631.24

PV c $712,539.8598

PV m $166,631.2357

Total $879,171.0955

The interest expense will be the carrying value times market rate

the cash outlay will be the same for each period:

principal x coupon rate x half-year as payment are semiannual.

800,000 x 0.09 x 1/2 = 36,000

The difference between each one will determinate the amortization onthe premium

6 0

2 years ago

In which countries do people prefer discussing business during meals?

Masteriza [31]

Answer:

china

Explanation:

if your traveling to china on business do not discuss business during meals .

6 0

2 years ago

Read 2 more answers