Carla Vista Co. had the following assets on January 1, 2017. Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $63,900 Jan. 1, 2007 10 $ 0 Forklift 27,000 Jan. 1, 2014 5 0 Truck 30,064 Jan. 1, 2012 8 2,704 During 2017, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $10,800. The truck was discarded on December 31. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2016.

Answers

Answer 1

Answer:

I have no Idea ask your teacher


Related Questions

Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (7,400 units) $ 251,600 $ 34.00 Variable expenses 140,600 19.00 Contribution margin 111,000 $ 15.00 Fixed expenses 55,100 Net operating income $ 55,900 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 6,400 units?

Answers

Answer:

Whirly Corporation

1. Revised net operating income per month if the sales volume increases by 70 units:

Whirly Corporation’s contribution format income statement for the most recent month is shown below:

                                             Total         Per Unit

Sales (7,470 units)       $ 253,980      $ 34.00

Variable expenses           141,930          19.00

Contribution margin        112,050       $ 15.00

Fixed expenses                 55,100

Net operating income $ 56,950

2. Revised net operating income per month if the sales volume decreases by 70 units:

Whirly Corporation’s contribution format income statement for the most recent month is shown below:

                                             Total         Per Unit

Sales (7,330 units)       $ 249,220      $ 34.00

Variable expenses           139,270          19.00

Contribution margin        109,950       $ 15.00

Fixed expenses                 55,100

Net operating income  $ 54,850

3.  Revised net operating income per month if the sales volume is 6,400 units:

Whirly Corporation’s contribution format income statement for the most recent month is shown below:

                                            Total         Per Unit

Sales (6,400 units)       $ 217,600      $ 34.00

Variable expenses           121,600          19.00

Contribution margin         96,000       $ 15.00

Fixed expenses                 55,100

Net operating income $ 40,900

Explanation:

a) Data and Calculations:

Whirly Corporation’s contribution format income statement for the most recent month is shown below:

                                          Total         Per Unit

Sales (7,400 units)      $ 251,600      $ 34.00

Variable expenses         140,600          19.00

Contribution margin        111,000       $ 15.00

Fixed expenses               55,100

Net operating income $ 55,900

One year ago, James Sirlank bought Dell Computer common stock for $20 per share. Today the stock is selling for $19 per share. During the year, James received four dividend payments, each in the amount of $0.20per share. (a) What rate of return did James earn during the year? (b) What were the (1) dividend yield and (2) the capital gains yield associated with the stock for the year?

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Tthe price of the share is down in the year so there will be no Capital gain (*5.26%) for the year but dividend of the the share received so there will be return (-1.05%) and dividend yield (4.21%) .

What will be the return and yield for the year ?

Given in the question

Price = $ 20

Selling Price = $ 19

Dividend payment = $ 0.20 per share

As per question

(a) Rate of Return =

\(Total return = (Purchase price - (Sale price + dividend payment))/Purchase price \\ = (20-(19+(0.2*4))/19\\ = -1.05%\)

(b) (1) Dividend yield

\(Dividend Yield = Dividend payment / purchase \\ 0.2*4 / 19\\ = 4.21%\)

(2)

Capital Gain yield

\(Capital gain Yield = (Sale price- purchase price)/Purchase price\\ = (19-20)/20\\ = *5.25%\)

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How can not having a checking account become expensive?

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A checking account offers easy access to your money for your daily transactional needs and helps you cash secure.

In today's world it is important to have a checking account, for example in India even in rural areas people have checking accounts, which makes transactions easy and secure and it can become expensive if not have a checking account, for example, if a shopkeeper is not having change and you don't have a checking account then the transaction can become expensive, moreover, you will require to carry cash which will become expensive with less security.

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How does risk pooling affect inventory levels when a company uses fewer and centralized warehouses? Please explain.

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Answer:

In simple words, Inventory risk pooling is the concept that the variability in demand for raw materials is reduced by aggregating demand across multiple products. When properly employed, a business can use risk pooling to maintain lower inventory levels while still avoiding stock out conditions. Although for preventing stock out situation a company need warehouses where they can keep supply sufficient for emergency conditions.

I will give brainliest and ratings if you get this correct ​

I will give brainliest and ratings if you get this correct

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3.1 The equilibrium price and quantity for City 1 are 75 and 25, respectively and the total profit for the monopoly is 3775.

3.2 City 2 has a lower price elasticity of demand than City 1.

How to calculate the value

3.1. To find the equilibrium price and quantity for each city, we need to equate the demand curve with the marginal cost curve. For City 1, we have:

P₁ = 100-Q = MC = 25

Solving for Q, we get:

Q₁ = 25

Plugging this value of Q into the demand curve for City 1, we get:

P₁ = 100-25 = 75

Therefore, the equilibrium price and quantity for City 1 are 75 and 25, respectively.

We can do the same thing for City 2 to find that the equilibrium price and quantity are 95 and 20, respectively.

To find the profit for each city, we can use the following formula:

Profit = (Price - MC) * Quantity

For City 1, we have:

Profit₁ = (75 - 25) * 25 = 1875

For City 2, we have:

Profit₂ = (95 - 25) * 20 = 1900

Therefore, the total profit for the monopoly is 3775.

3.2. To find the price elasticity of demand for each city, we can use the following formula:

Ed = -(ΔQ/Q)/(ΔP/P)

For City 1, we have:

Ed₁ = -(ΔQ₁/Q₁)/(ΔP₁/P₁) = -(0/25)/(25/75) = -1

For City 2, we have:

Ed₂ = -(ΔQ₂/Q₂)/(ΔP₂/P₂) = -(0/20)/(95/120) = -2

Therefore, City 2 has a lower price elasticity of demand than City 1.

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Kris Kerpstra is an employee for General Dynamics. Kris would be considered a human resource.

Answers

Answer:

I NEED THIS ANSWERRR TOOO!!

Explanation:

Answer:

Trisha wishes that she and Bo could become better friends. This is an example of an (Non) economic want.

Explanation:

Its not a economic want

Question 4 (4 points)
Match each Type of Sales Channel to its corresponding description.
>
Selling products in bulk
to various outlets or
retailers for onward
sale.

When a brand or
manufacturer sells
direct to consumers
and the end users of
their products, as
opposed to selling to
them solely through
retailers.

Selling products directly
to end customers for a
profit, either in-store,
online, mail-order, or
by phone.

Businesses that sell to
other businesses who
are the intended end
user of the product.

1. Retail.
2. Wholesale
3. Direct to Consumer
4. B2B

Answers

Based on business and trading methods, the type of sales channel, that matches the description can be any of the following Retail, Wholesale, Direct Consumer, or B2B.

What are Sales Channels?

The Sales Channel is a term that is used to describe the ways or methods in which producers sell their products. This method can either be through direct or indirect routes.

Considering the available descriptions we have the following sales channel matching them.Wholesale: Selling products in bulk to various outlets or retailers for onward sale.

Direct to Consumer: When a brand or manufacturer sells direct to consumers and the end users of their products, as opposed to selling to them solely through retailers.

Retail: Selling products directly to end customers for a profit, either in-store, online, by mail-order, or by phone.

B2B: Businesses that sell to other businesses who are the intended end user of the product.

Hence, in this case, it is concluded that each of the types of sales channels has its peculiarities that producers may choose to utilize.

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Francisco Olivas of Olivas Medical Supply Company was reading the financial statements of Alvear Corp. to decide whether he wanted to try to acquire the company. He noticed some mistakes in the Alvear Corp. Income Statement:

Answers

Answer:

Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes is $0.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file file for the complete question.

The explanation of the answer is now provided as follows:

Operating income refers to the amount of profit that a business realized from its operations after operating expenses have been deducted.

Operating expenses are cost incurred by a business in its normal business operations.

The following two mistakes are prominent in the income statement in this question:

1. Gain on sale of equipment is included as part of Total Revenue instead of including under Other Income.

2. Interest Expense is included as part of operating expenses instead of including it under Interest income (expenses).

To correct this mistake, the income statement is prepared again appropriately using a Multi-step income statement format that shows gross profit and the detailed of each category of expenses and incomes to arrive at the net income.

Note: See the attached excel file for the new multi-step income statement that shows Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes.

In the attached excel file, Alvear Corp.'s Operating Income for the year ended 12/31/2015 after correcting the mistakes is $0 (see red color).

(Just need some ideas and inspiration) What do you consider the most important challenge that will face people in the United States in the years ahead?

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Food security, hunger, poverty, population growth, pollution, heatwaves, droughts, and climate change are all interconnected.

What is Food security?

Food security refers to the availability of food in a nation and the capacity of its citizens to obtain, afford, and procure enough food.

The United Nations Committee on World Food Security defines food security as everyone having constant physical, social, and economic access to enough, safe, and nourishing food that satisfies their dietary needs and food preferences for an active and healthy life.

Another aspect of food security is the accessibility of food regardless of class, gender, or area.

Food security was a problem many thousands of years ago, as shown by the fact that central governments in ancient China and ancient Egypt were known to release food from storage during famines.

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What do the customers buy/use of value from the Samsung?

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Answer:

Customer Value is the perception of what a product or service is worth to a Customer versus the possible alternatives. Worth means whether the Customer feels s/he or he got benefits and services over what s/he paid. ... Consumers use the product or the service, but in all cases do not buy the product/service.

Stu Johnson, CEO of Johnson, Inc., attended a seminar on Total Quality Management. Which of the following is NOT something he is likely to have learned at that seminar?
A. Some aspects of quality are difficult to measure because they depend on customers' judgments.
B. Quality is primarily the responsibility of operations management.
C. Quality results from design as well as operations and delivery.
D. Cross-functional teams are important in TQM decision making.
E. He is likely to have learned all of these things.

Answers

As Stu Johnson, CEO of Johnson, Inc., attended a seminar on Total Quality Management, thing which he had not learned at seminar is that Quality is primarily the responsibility of operations management.

Total quality management (TQM) is a method to management that focuses on long-term success through client satisfaction. In a TQM initiative, every employee of a firm takes part in enhancing their workplace's processes, goods, and services. TQM can be summed up as a management framework for a client-centered business that incorporates all staff members in ongoing development. To incorporate the discipline into the organization's culture and activities, it makes use of plan, data, and effective communications. TQM can have a significant and positive impact on organizational and personnel development. Companies can create and preserve cultural norms that produce long-term success for both clients and the firm by having all workers concentrate on quality assurance and continual improvement. The quality-centered approach of TQM makes it easier to spot employee skill gaps and provide the appropriate coaching, training, or education to fill them.

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When there is high unemployment,
which of the following occurs in
society?
A. There is a greater reliance on government assistance.
B. There is a greater reliance on management creating
income.
C. There is a greater reliance on consumer spending.
D. There is a greater reliance on educational spending.

Answers

When there is high unemployment, A. There is a greater reliance on government assistance occurs in society.

A society is a collection of people involved in chronic social interaction, or a massive social institution sharing the identical spatial or social territory, normally subject to the identical political authority and dominant cultural expectancies

The totality of social relationships amongst prepared organizations of people or animals. a system of human businesses generating exceptional cultural styles and establishments and usually presenting protection, protection, continuity, and a countrywide identity for its contributors.

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If a company has a required rate of return of 15%, should the following project be accepted based on these expected cash flows below?Year 0 1 2 3 4 5 6 Cash Flow (274,000) 68,000 73,000 76,500 78,000 82,500 77,000 Please explain why or why not the company should move forward with this endeavor.

Answers

Answer:

Yes

Explanation:

In order for deciding whether the company should forward or not, we have to find out the net present value which is shown below:

Year              Cash flows             Discount factor       Present value  

0                        -274000                      1                        -274000

1                           68000                    0.8696                   59130.43

2                          73000                    0.7561                    55198.49

3                           76500                    0.6575                   50299.99

4                          78000                      0.5718                   44596.75

5                          82500                     0.4972                   41017.08

6                           77000                     0.4323                    33289.22

Total present value                                                           283531.97

Net present value                                                                9531.97

Since the net present value comes in positive so the project should be accpeted

Why is this case an example of trademark violation?

Answers

Answer:

Say for example i make a Yt video and add in a song that has a trademark if i dont pay for the songs trademark to be able to use it the can report me it would be a violation

Explanation:

Answer: A

Explanation:

Payless made sneakers with a pattern that is similar to the Adidas logo.

An investment offers a total return of 12 percent over the coming year. Janice Yellen thinks the total real return on this investment will be only 8.3 percent. What does Janice believe the inflation rate will be over the next year?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

Answers

According to Janice, the yearly rate of inflation will be 3.4%.

Why do you use the term inflation?

The amount that a collection of products and services have increased in price during a specific time frame, typically a year, is measured by inflation. One of the most well-known words in economics, perhaps. nations have gone through protracted periods of instability due to inflation.The costs of products and services are always subject to change in a market economy. Some prices increase while others decrease. When the cost of products and services rises broadly rather than simply for specific items, it is said to be experiencing inflation.

(1 + R) = (1 + r)(1 + h)

H = (1 + .12)/(1 + .083) - 1

H = 0.0340 or 3.40%

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Determine the total expenses based on the following data

assets 72,000
owner's equity 70,000
revenues 20,000
liabilities 16,000

Answers

From the given data, it appears that the expenses result in a negative value of $-14,000. This indicates a deficit, which suggests that the company's liabilities and owner's equity exceed its assets.

To determine the total expenses based on the given data, we need to use the accounting equation: Assets = Liabilities + Owner's Equity. In this case, we are given the values of assets, owner's equity, and liabilities.

Assets = $72,000

Owner's Equity = $70,000

Liabilities = $16,000

Using the accounting equation, we can calculate the total expenses by rearranging the equation:

Expenses = Assets - Liabilities - Owner's Equity

Expenses = $72,000 - $16,000 - $70,000

Expenses = $-14,000

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Can someone help me with this ?

Can someone help me with this ?

Answers

Answer:

come over

Explanation:

girls only and ima need hella yay

which of the following should not be recorded in income and expenditure account?
a.sale of old newspaper.
b.loss on sale of asset .
c.honorarium paid to the secretary .
d.Sale proceeds of furniture ​

Answers

Answer:

C. honorarium paid to the secretary

Explanation:

Q1. A manufacturing firm has discontinued production of a certain unprofitable product
line. This created considerable excess production capacity. Management is considering to
devote this excess capacity to one or more of three product 1,2 and 3. The available capacity
on the machines which might limit output are given below:
Machine type Available time
(in machine hours per week)
Milling
machine
250
Lathe 150
Grinder 50
The number of machine hours required for each units of the respective product is given
below;
Machine type Productivity (in machine hours/unit)
Product 1 Product 2 Product 3
Milling 8 2 3
Lathe 4 3 0
Grinder 2 0 1
The unit profit would be 20 birr, 6 birr and 8 birr for products 1,2 and 3. Find how much of
each product the firm should produce in order to maximise profit ? Solve the problem by
simplex method.

Answers

The simplex method is a linear programming technique used to find the maximum value of a linear objective function subject to constraints represented by linear equations or inequalities.

How do we use this method?

Here's how you can solve this problem using the simplex method:

Formulate the problem as a linear program:

The objective is to maximize the total profit, which is given by 20x1 + 6x2 + 8x3, where x1, x2, and x3 are the number of units of products 1, 2, and 3, respectively. The constraints are the available machine time, which are:

8x1 + 4x2 + 2x3 <= 250 (milling machine)

3x1 + 3x2 <= 150 (lathe)

x3 <= 50 (grinder)

Create a simplex tableau:

The simplex tableau is a matrix used to keep track of the variables and the coefficients of the objective function and the constraints. The first row of the tableau is the objective function, the rest of the rows are the constraints. The last column is called the "result" column and contains the values of the variables and the objective function.

Choose a basic variable:

In the first iteration, we will choose x1 as the basic variable, since it is the only non-negative variable in the objective function. We will write x1 in terms of x2 and x3 using the first constraint:

x1 = (250 - 4x2 - 2x3)/8

Update the simplex tableau:

Substitute x1 in the objective function and in the rest of the constraints:

20 * (250 - 4x2 - 2x3)/8 + 6x2 + 8x3

3x2 <= 150

x3 <= 50

Check for optimality:

Check if all the coefficients in the objective function are non-negative. If so, the current solution is optimal and the problem is solved. If not, choose the next basic variable and repeat steps 3 and 4.

Repeat steps 3 to 5 until optimality is reached:

In the second iteration, we will choose x2 as the basic variable. Substitute x2 in the objective function and in the rest of the constraints, and check for optimality. Repeat this process until the coefficients in the objective function are non-negative, indicating that the solution is optimal.

The final solution will give the number of units of each product that the firm should produce in order to maximize profit.

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10. You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker, and the trade occurred on the NYSE. This is an example of:

Answers

Answer:

A secondary market transaction

Explanation:

Secondary market transaction: In this transaction, the transaction which is already issued to the public are sold by another investors.

In this type market, the investors buy and sell securities which are theirs . It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.

So in the question, the transfer was made through a broker which implies it deals in the secondary market.

Primary market transaction: In this transaction, the company directly sells the new stocks, bonds, etc to the public for the first time.

Future market transaction: This is the transaction which occurs in the near future to buy some specific quantities at the future price.

Schonhardt Corporation's relevant range of activity is 4,700 units to 10,500 units. When it produces and sells 7,600 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.50 Direct labor $ 4.00 Variable manufacturing overhead $ 1.55 Fixed manufacturing overhead $ 2.50 Fixed selling expense $ 1.15 Fixed administrative expense $ 0.85 Sales commissions $ 0.95 Variable administrative expense $ 0.85 If 9,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to

Answers

If 9,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to $19,000

What is a fixed cost?

A fixed cost is the portiion of production costs that does not vary within a relevant range. Since Schonhardt Corporation's relevant range of activity is 4,700 units to 10,500 units, when it produces 9,500 units, its fixed cost does not change in total from when it produces 7,600 units.

Data and Calculations:

Relevant range of activity = 4,700 to 10,500 units

Average production and sales units = 7,600 units

Average costs per unit:

Direct materials $ 7.50

Direct labor $ 4.00

Variable manufacturing overhead $ 1.55

Fixed manufacturing overhead $ 2.50

Fixed selling expense $ 1.15

Fixed administrative expense $ 0.85

Sales commissions $ 0.95

Variable administrative expense $ 0.85

Fixed manufacturing overhead $ 2.50

Fixed selling expense                  $ 1.15

Fixed administrative expense   $ 0.85

Total fixed costs per unit            $4.50

Thus, if 9,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to $19,000 ($2.50 x 7,600).

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Martha has just started a small retail store in the city. There are popular and older retailers in the same locality. In the first two months, people have been reluctant to walk into Martha’s retail store. They seem to be happy with the more established retailers, even though Martha’s business delivers quality products. Which barrier to entry is Martha experiencing as a first-time entrepreneur? A. She does not gain the benefits of economies of scale. B. Her competitors enjoy good brand loyalty. C. She does not have sufficient capital to fund her business. D. She does not have access to the right distribution channels.

Answers

Answer:

B: Her competitors enjoy good brand loyalty

Explanation:

Plato

Evie wants her sister's cell phone. Her sister wants Evie's television. They come to an agreement that they will exchange these items of value.

How would an economist BEST describe this scenario?

О А.

Both girls are offering a consideration.

OB.

Both girls are giving each other power of attorney.

Both girls are agreeing to create a living will.

Ос.

OD

Both girls are rejecting a concurrence of wills.

Answers

An economist would BEST describe the scenario as : Barter system

What is a Barter system?

Barter system is when commodities are exchanged against commodities. It is an act of trading goods or services between two or more parties without the use of money.

This type of trading system is an old method of exchange practised for centuries and long before money was introduced.

Examples of barter system are :

Mangoes are exchanged for bananas.Salt is exchanged for onion.Shoes are exchanged for clothes.

Therefore, an economist would BEST describe the above scenario as barter system because both Evie and her sister exchanged their items of value between themselves.

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Answer:

Both Girls Are Offering Consideration

Explanation:

The COM 341 Medical Supplies is in charge of maintaining hospital supplies at UVic Hospital. The lead time for replenishment deliveries is 6 days. It was calculated that the mean demand for a 3-day period was 60 units, with a standard deviation of 7 units. Please assume that demand follows a normal distribution. COM 341 Medical Supplies would like to maintain a 90% service level.

Required:
What is the appropriate reorder point?

Answers

Answer:

reorder point = 132.67 ≈ 133 units

Explanation:

z score for service level 90% = 1.28

lead time = 6 days

mean demand 60 units for 3 days period, 20 per day

standard deviation of demand = 7 units

reorder point = (20 x 6) + {1.28 + √[(7x7)/3] x √6} = 120 + 12.67 = 132.67 ≈ 133 units

A fast internationalization strategy for better generation has some associated risks. What are these risks?

Answers

Answer: Political risks eg High taxes

Economic risks eg fluctuation of exchange in currency.

Please see below for further explanation.

Explanation:

Internationalization strategy is the plan by an organization to expand beyond the domestic market to become globally visible in another country or countries market.

The risks associated Associated when a company, better generation tries to expand globally include

1.)Political risks:Political risk occurs when target countries policies change or fluctuates in such a way to negatively affect a business.

Some of the political risks include

---Instability in foreign country's governments due to corruption

---Government regulations eg High taxation, High tariff quotas

-----Trade barriers etc.

2.Economic Risks here refers to the conditions in the foreign nation's economy that affect a company's financial gains.

Some of the Economic risk include

-fluctuations in the value of currencies exchange.

-Inflation

-Quality of basic infrastructure in terms of electricity, transportation, accessible to water etc as the case may be.

--Labor and differences in wages.

one of the most significant contributions to strategy-making in diversified companies that the 9-cell industry attractiveness/competitive strength matrix provides is

Answers

Based on the business management model and the 9-cell industry attractiveness/competitive strength matrix analysis, the most significant contribution to strategy-making in diversified companies is that the greatest competitive strength business should prioritize corporate resources, while the weak competitive strength business should not prioritize corporate resources.

What is the 9-cell industry attractiveness/competitive strength matrix?

The 9-cell industry attractiveness/competitive strength matrix ks a term that is used to describe the quality measures of business unit strength against industry attractiveness and this is the main difference.

Also, the strength matrix shows that where BCG is limited to products, business units can be products, whole product lines, a service, or even a brand.

Thus, the 9-cell industry attractiveness/competitive strength matrix explains further that businesses having the greatest competitive strength and position in the most attractive industries should have the biggest priority for corporate resource allotment and that competitively weak businesses in relatively unattractive industries should have the lowest priority and perhaps even be considered for sale

.

Hence, in this case, it is concluded that the nine-cell industry attractiveness-competitive strength matrix is useful for helping decide which businesses should have high, average, and low priorities in allocating corporate resources.

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Amy currently volunteers at her local hospital. She would like to one day
become a doctor. What is the best type of student organization for Amy to
join?
A. One that has a focus on community service
B. One that has a focus on technology careers
c. One that has a focus on health care careers
• D. One that has a focus on building marketing skills

Answers

Option C, which refers to One with a focus on careers in healthcare, is entirely accurate.

What are the benefits of health care?

efforts made, especially by trained and licenced professionals, to maintain or restore one's physical, mental, or emotional well-being. used with a hyphen when being attributed. healthcare professionals.

When provided effectively, health care is generally regarded as a key factor in promoting the overall physical, mental, and social well-being of people around the world and can play a significant role in a nation's economy, development, and industrialization.

The phrase "healthcare process" was defined as "the order of steps we frequently take when giving treatment to patients who belong to various defined groups.

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Colton has $245 to spend on new wheels for his skateboard.
Each wheel costs $41 someone help

Answers

Answer: 164

Explanation: He has to spend 164$ for 4 wheels, and has a remaining 81$.

An indirect distribution channel uses agents, wholesalers, and/or retailers.

Question 6 options:

True


False

Answers

The correct answer is True

AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $0.50 per unit and a selling price of $1.40 per unit. Fixed costs are $14,000. Current sales volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,000. Variable costs would increase to $0.60, but sales volume should jump to 50,000 units due to a higher-quality product. Should AudioCable buy a new equipment?

Answers

Answer: Yes. AudioCable should buy a new equipment

Explanation:

Audiocables Inc. without new equipment:

Selling price: $1.40

Variable cost: $0.50

Fixed cost: $14,000

Sales: 30000 units

Total cost = Fixed cost + Variable cost

= $14000 + ($0.50 × 30000)

= $14000 + $15000

= $29000

Revenue = Sales × Selling price

= 30000 × $1.40

= $42000

Profit = Revenue - Total Cost

= $42000 - $29000

= $13000

Audiocables Inc. with new equipment:

Selling price: $1.40

Variable cost: $0.60

Fixed cost: $14,000 + $6000 = $20000

Sales: 50000 units

Total cost = Fixed cost + Variable cost

= $20000 + ($0.60 × 50000)

= $20000 + $30000

= $50000

Revenue = Sales × Selling price

= 50000 × $1.40

= $70000

Profit = Revenue - Total Cost

= $70000 - $50000

= $20000

From the calculations made, AudioCable buy a new equipment as profit generated is more.

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