John Rawls owns and operates Philosophical Consulting, Inc. During 2019 and 2020 he made the following purchases of assets for use in the business:
Asset Date of Purchase Cost
Office Furniture 5/1/2019 $100,000
Computer System 9/15/2020 $500,000
In addition, his business income before any cost recovery deduction in 2020 is $350,000. Prior to 2020, he only used regular MACRS depreciation for all purchases. However, at the beginning of 2020 he decides to take the maximum deduction possible for all new purchases. Ignore any excess business or net operating loss limitations.
Required: What is the 2020 cost recovery deduction for Philosophical Consulting, Inc?
Answers
Answer:
The right solution is "600000".
Explanation:
The given values are:
Cost of office furniture,
= $100,000
Cost of the computer system,
= $500,000
The changed MACRS enables a company to reduce the mortgage balance of such deteriorating properties over time.Throughout the very first years, MACRS permits quicker depreciation although subsequently slows down depriving. This seems to be fantastic for corporations from a tax point of view.Now,
The cost recovery deduction will be:
= \(Office \ furniture+Computer \ system\)
On substituting the values, we get
= \(100000+500000\)
= \(600000\)
Related Questions
Question 1: Critique the case from a leadership, internal and external communication with stakeholders, and barriers to communication point of view.
Answers
A general view from the leadership, internal and external communication with stakeholders has been provided
The leadership, internal and external communication with stakeholdersLeadership:
Efficient leadership necessitates setting a definitive vision, encouraging and motivating personnel, and making judicious decisions when required. A successful leader should succinctly verbalize the vision and objectives of the organization and guarantee that employees comprehend their positions in attaining those aims.
Internal communication with stakeholders:Interior communication with stakeholders pertains to communication within an institution with staff, superior executives, and additional internal stakeholders. Successful internal communication can facilitate aligning the visions and aspirations of the corporation and guaranteeing that everybody is progressing towards common ambitions.
External communication with stakeholders:
External communication with stakeholders alludes to communication with purchasers, vendors, financiers, and other external parties. Effective external communication can promote constructing associations with these stakeholders, embellish the standing of the establishment, and elevate customer gratification.
Barriers to communication:Certain obstructions to productive communication can affect the capability of leaders to communicate effectively with stakeholders. These impediments involve speakers barriers, cultural differences, physical detachment, and technological issues. Other hindrances consist of inadequate trust, deficient listening aptitudes, and indefinite or ephemeral messages.
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Hyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimumcost site, where cost is measured by the annual fixed plus variable costs of production. Hyundai Motors has gathered the following data: ••• 8.18 SITE A B C ANNUALIZED FIXED COST $10,000,000 $20,000,000 $25,000,000 VARIABLE COST PER AUTO PRODUCED $2,500 $2,000 $1,000 The firm knows it will produce between 0 and 60,000 Sport C150s at the new plant each year, but, thus far, that is the extent of its knowledge about production plans. a) For what values of volume, V, of production, if any, is site C a recommended site? b) What volume indicates site A is optimal? c) Over what range of volume is site B optimal? Why?
Answers
The volume of production that illustrates that site C is a recommended site is 10000 automobiles.
How to calculate the production?The total cost of A will be:
= 2500x + 10000000
The total cost for B will be:
= 2000x + 20000000
The total cost for C will be:
= 1000x + 250000
The volume, V, of production, if site C is a recommended site. The value will be:
2500x + 10000000 = 1000x + 25000000
2500x - 1000x = 25000000 - 10000000
1500x = 15000000
x = 15000000/1500
x = 10000 automobiles
The volume indicates site A is optimal is also 10000 automobiles.
In conclusion, sure B would not be attractive at any volume of production as the costs will be higher than the cost of site A.
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Consider the market for orange juice. In this market, the supply curve is given by QS = 100PJ −20PO and the demand curve is given by QD = 1000−150PJ +100PC, where J denotes orange juice, O denotes Orange, and C denotes coffee.
Answers
QS = 100PJ −20PO
QD = 1000−150PJ +100PC
Setting QS = QD, we get:
100PJ −20PO = 1000−150PJ +100PC
Solving for PJ, we get:
PJ = (1000 + 20PO - 100PC)/250
Therefore, the equilibrium price of orange juice (PJ) is dependent on the price of oranges (PO) and the price of coffee (PC).
Also, we can find the equilibrium quantity of orange juice by substituting the equilibrium price into either the supply or demand equation.
QS = 100PJ -20PO
QD = 1000 -150PJ +100PC
As the value of QS=QD, we can substitute either of the equation and find the value of Q.
you are the office manager of a small financial credit business. your company handles personal financial information for clients seeking small loans over the internet. you are aware of your obligation to secure clients records, but the budget is an issue for your company.
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When a customer applies for a small loan online, your business handles their sensitive financial information. You are conscious of your duty to protect client information, yet your company's budget is a concern all-in-one security appliance.
The best technique to prevent unauthorized access to your data is encryption. The process of converting data into a different format that can only be read by someone with access to the decryption key is known as encryption.
The CISO of a corporation is the advocate for data security within the company. The incumbent of this position is in charge of developing the policies and strategies to protect data from threats and vulnerabilities as well as the reaction strategy in case the worst case scenario occurs.
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What is something you would buy (or buy more of) if its price dropped? What is it about this product that appeals to you?
Why do you think this product's price is at its curent level?
Answers
Answer:
bath bomb
Explanation:
because there really pretty, and i really dont know if this helped you but here you go
Basics Ltd reported current liabilities of R3 000 and a quick ratio of 1,2. The company has current assets of R6 000. If the company reports the cost of goods sold at R4 000 for the given year, what is the inventory turnover?
Answers
The inventory turnover for the given year is 3.33, calculated by dividing the cost of goods sold by the average inventory of R1200.
To calculate the inventory turnover, we first need to determine the inventory value. We can use the quick ratio formula to find the inventory amount.Quick ratio = (Current assets - Inventory) / Current liabilitiesRearranging the formula, we have: Inventory = Current assets - Quick ratio * Current liabilitiesSubstituting the given values, we have:Inventory = R6000 - 1.2 * R3000Inventory = R6000 - R3600Inventory = R2400The inventory value is R2400. To calculate the inventory turnover, we divide the cost of goods sold by the average inventory. In this case, the cost of goods sold is given as R4000. The average inventory is the sum of the beginning and ending inventory divided by 2. Since we don't have information about the beginning and ending inventory, we can assume they are equal, resulting in an average inventory of R2400/2 = R1200.Inventory turnover = Cost of goods sold / Average inventoryInventory turnover = R4000 / R1200Inventory turnover = 3.33Therefore, the inventory turnover for the given year is 3.33.For more questions on inventory
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Ronaldo’s manager told him, “Preliminary data suggest that our new fuel produces less air pollution than conventional fuels. However, we need to understand the total environmental impact of its production and use. I want you to perform a(n) ________ to quantify the total use of resources and total environmental releases, ‘cradle-to-grave,’ associated with our new fuel.”
Answers
An LCA life cycle assessment is the best solution.
What exactly is LCA?Life cycle assessment (LCA) is a procedure for evaluating the environmental risks associated with all stages of a retail venture, process, or service's life cycle. In the case of a manufactured product, for example, environmental impacts are evaluated from the extraction and processing of raw material (cradle), through manufacturing, distribution, and use, to recycling or disposal practices of the materials that comprise it (grave).
An LCA study includes a thorough inventory of the energy and materials required across the industry value chain of the product, process, or service, as well as the calculation of the corresponding emissions to the environment.
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. a $1000-face-value 10-year bond has a 6% coupon rate, its current price is $980. a. what would be the price of this bond after one year if yield to maturity decreases to 3%. b. continued from part a, calculate return for one-year investment, capital gain rate and current yield.
Answers
The maxim that a bond's price must be lower than its maturity value applies if the yield to maturity is higher than the coupon rate.
The par value, sometimes referred to as the maturity value, the coupon rate, the term to maturity, and the yield to maturity are the four elements taken into account when pricing bonds (YTM). The price of the bond could be established using a discount, premium, or par price. The price is determined by the relationship between the YTM and the coupon rate. The bond is a discount bond and has a price that is less than its par value if the yield to maturity is more than the coupon rate. whenever the coupon and YTM rates are equal. Bonds can be used to purchase two main kinds of long-term investments: business bonds and government bonds. The bond's issuer must raise capital from willing investors in order to pay the bond's par value and monthly coupon payments at maturity.
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Human Resources and many other departments at Walmart will use the following as a form of business communication
Answers
Human Resources as well as many other departments at Walmart usually use Accounting as a form of business communication.
Human resources can be regarded as division of a business which carry out some functions such as;
finding and screening of employees. recruitment of employees.training job applicants.administering employee-benefit programs.This department overseas the employees affairs as well as their behavior.
Therefore, they use accounting as means of communication.
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How does a racial caste system and mass incarceration affect the eligibility for black and brown American citizen rights, including financial assistance programs?
Answers
Many Americans believed that discrimination in housing, education, employment, and voting rights had been eliminated by the civil rights laws of the 1960s, yet it is currently entirely permissible to do so against anyone who is classified as a "felon."
What is the situation of black and brown American citizen rights?
Today, there are more African Americans in prison or jail, on probation, or on parole than there were when they were slaves in 1850.
Racial discrimination is still as prevalent today as it was during slavery or the post-slavery era of Jim Crow segregation because many more individuals of color than whites are rendered felons by the entire system of mass imprisonment. The thesis of a book that inspired a fresh social movement is as follows: The New Jim Crow: Mass Incarceration in the Age of Colorblindness by Michelle Alexander.
With the adoption of the Civil Rights Act of 1964 and the Voting Rights Act of 1965, the fierce Civil Rights movements of the 1950s and 1960s appeared to put an end to the Jim Crow era. But as the book shows, the racial caste structure still exists; it has just been reorganized. Alexander discusses how the "War on Drugs" targets black men as part of the criminal justice system's new racial control scheme.
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a country with low saving rates and low levels of health and education. How would you expect real GDP per capita to grow in a country like this? Explain your answer
Answers
Real GDP per capita can grow in a country with the institution of economic and public policies.
How can a country increase its GDP?It is essential that in a country with high levels of social and economic inequality, the government institutes reforms that generate inclusion and opportunities for individuals, such as an economic growth program, which reduces interest rates on loans, encouraging entrepreneurship and investments.
Therefore, a series of measures must be instituted to increase a country's GDP, such as investment in education and job creation.
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*will give Brainliest if correct!*
Part of File Explorer that is used to access devices, drives, and folders on your computer.
(A) This PC
(B) Location
(C) Status
Answers
Answer:
This PC?
Explanation:
when I go into file explorer, I don't see anything labeled location or status, but when I go into This PC there is nothing that says devices, so I'm not sure. I'm very sorry if I'm wrong
38. A log book used to record information about visitors who call in an organization is called A. Complimentary card B. Telephone directory C. Telephone pad D. Visitor's register E. Visitor's request form
Answers
A logbook used to record information about visitors who call in an organization is called an Option D. Visitor's Register.
A visitor's register is an essential tool for maintaining security and professionalism in a workplace. It helps in keeping track of the people entering and leaving the premises, which aids in monitoring the flow of visitors and ensuring their proper identification.
A visitor's register typically includes columns for the visitor's name, contact details, purpose of visit, time in, time out, and the name of the person they are meeting. This information is valuable in case any follow-up is required or for emergency situations where it's crucial to know who is on the premises.
In contrast, a complimentary card (A) is a business card exchanged during formal introductions. A telephone directory (B) is a listing of telephone numbers organized by name or business. A telephone pad (C) is a notepad used for taking messages or notes during phone calls, and a visitor's request form (E) may be a document required to be filled out by visitors for specific purposes or access.
In summary, a visitor's register (D) is the correct term for a log book used to record information about visitors who call an organization. It helps maintain security, monitor visitor flow, and ensure proper identification of guests. Therefore, the correct option is D.
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When drafting an end-of-year summary report to her supervisor about the status and sales of the restaurant's newest pizza, Diane omits details about negative customer feedback. By only reporting positive feedback, which barrier of effective communication is she using?
A) deceptive tactics
B) perceptual differences
C) distractions
D) information overload
Answers
Which of these does research show is the best study technique?
Highlighting
Rereading
Doing practice questions
Summarization
Answers
Answer:
highlighting
Explanation:
Highlighting is characterized as the 'process of marking the significant or important information in a chapter or text.'
The most adequate study technique displayed by research is:
A). Highlighting
'Highlighting' helps the students keep their focus on the important details ideas of the text. This will not only assist the students in memorizing the information effectively but also in revising them during the exams as the important details are already highlighted. It allows the students in effective and efficient learning of the key concepts and to understand the texts comprehensively.
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What is the whiplash effect?
Answers
Answer:
A neck injury due to forceful, rapid back-and-forth movement of the neck, like the cracking of a whip.
Explanation:
Question 6 of 10
A risk response plan lists your risks, including identified risk causes, description, and
Select an answer:
potential impacts
why the risk can't be avoided
your sponsor's assignee to handle risk
issue register
Answers
A risk response plan lists your risks, including identified risk causes, descriptions, and Option A. potential impacts.
The Risk Response Planning is a process that recognizes potential risks, assesses them, and establishes management plans to reduce or prevent them. Risk response plans should describe the expected outcome of each response action, any significant input from stakeholders, and the time and resources required to carry out the response. A risk response plan typically includes the following sections:
Risk Management Plan Preparation - This section provides guidance for preparing the risk management plan's remainder. It describes the recommended contents of the risk management plan and the recommended process for preparing it.
Risk Identification - This section identifies risk sources that might cause a negative outcome for the project. It also provides a risk identification checklist that the project team can utilize as a starting point for identifying risks.
Risk Analysis - This section analyzes each identified risk's potential impact on project success by estimating the probability of occurrence and the potential effect on the project's objectives.
Risk Response Development - This section outlines the strategies and actions for managing risks. It includes contingency plans for high-priority risks and an implementation plan for all other risks.
Risk Response Control - This section describes how to evaluate the effectiveness of the risk response strategy, establish contingency plans, and implement corrective action as needed.
Risk response plans should be developed in collaboration with stakeholders to ensure that the project's risks are addressed appropriately. In addition, they should be reviewed regularly and updated as necessary throughout the project. The most important part of any risk response plan is the risk response strategy, which describes the specific actions to be taken in response to each identified risk. Therefore, the correct option is A.
The question was incomplete, Find the full content below:
Question 6 of 10
A risk response plan lists your risks, including identified risk causes, descriptions, and
Select an answer:
A. potential impacts
B. why the risk can't be avoided
C. your sponsor's assignee to handle risk
D. issue register
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A company acquired an asset for $1,200,000 on January 1 of the current year. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes, the asset’s cost is depreciated by MACRS. The enacted tax rate is 19%. Amounts for pretax accounting income, depreciation, and taxable income in the four years are as follows:
Year
1 2 3 4
Pretax accounting income $3,700,000 $4,100,000 $4,400,000 $4,900,000
Depreciation on the income statement 300,000 300,000 300,000 300,000
Depreciation on the tax return (399,960) (533,400) (177,720) (88,920)
Taxable income $3,600,040 $3,866,600 $4,522,280 $5,111,080
Required:
For December 31 of each year, determine (a) the cumulative temporary book-tax difference for the depreciable asset and (b) the balance to be reported in the deferred tax liability account.
Note: Each cell requires a formula, even if the result is $0.
Answers
The cumulative temporary book-tax difference for the depreciable asset is $772,440 and the balance to be reported in the deferred tax liability account $41,801.52
Calculation of (a) the cumulative temporary book-tax difference for the depreciable asset:
Year 1:
Temporary difference = $300,000 – ($399,960 / 5) = $220,008
Cumulative temporary difference = $220,008
Year 2:
Cumulative temporary difference = $220,008 + $6,360 = $226,368
Year 3:
Cumulative temporary difference = $226,368 + $264,456 = $490,824
Year 4:
Temporary difference = $300,000 – ($88,920 / 5) = $281,616
Cumulative temporary difference = $490,824 + $281,616 = $772,440
Then, (b) the balance to be reported in the deferred tax liability account:
Year 1:
Deferred tax liability = $220,008 x 19% = $41,801.52
Year 2:
Deferred tax liability = $6,360 x 19% = $1,208.40
Year 3:
Deferred tax asset = ($264,456) x 19% = ($50,246.64)
Year 4:
Deferred tax asset = ($281,616) x 19% = ($53,507.04)
Therefore, the balance to be reported in the deferred tax liability account is:
Year 1: $41,801.52
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categories such as education and household size represent which of the following?
a) Culture
b) Demographic
c) Benefit
d) Psychografic
Answers
Which of the following is an example of a service business?
a. Home Depot
b. Enterprise Rent-a-Car
c. Best Buy
d. Mr. G's Lawn Mowing
Answers
Answer:
D
Explanation:
All of the others are businesses that sell goods such as tools, electronics, and cars. Mr. is doing a service by mowing lawns.
You want to buy a new sports car 3 years from now and you want to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5% annual compounding interest rate. How much will you have at the end of three years
Answers
Answer:
FV= $12,810
Explanation:
Giving the following information:
Annual deposit= $4,200
n= 3
i= 5% annual compounding
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {4,200*[(1.05^2) - 1]}/0.05
FV= 8,610 + 4,200
FV= $12,810
Comics Alive is an animation studio with a strong creativity culture where the employees work together to imagine new cartoon characters and bring them to life via digital animation. If you were to visit Comics Alive, you would likely encounter observable artifacts such as
Answers
If you went to Comics Alive, based on their organizational culture, you would likely encounter observable artifacts such as a. idea boards for current projects, varied kinds of seating, and advanced video technology.
Why would these be encountered?Companies like Comics Alive which place a strong emphasis on creativity and team work, will use certain artifacts to achieve this.
They will use idea boards that have current projects which inspires creativity by allowing people to give ideas on those projects. Advanced video technology also allows for teamwork regardless of location.
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Mitchell Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Mitchell Bicycle Shop uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost March 1 Beginning inventory 20 $185 $3,700 March 5 Sale ($270 each) 15 March 9 Purchase 10 205 2,050 March 17 Sale ($320 each) 8 March 22 Purchase 10 215 2,150 March 27 Sale ($345 each) 12 March 30 Purchase 9 235 2,115 $10,015 For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase. Required: 1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method. 2. Using FIFO, calculate ending inventory and cost of goods sold at March 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at March 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31. 5. Calculate sales revenue and gross profit under each of the four methods. 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? 7. If Mitchell Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment.
Answers
Bikes from initial inventory are included March 5 sale, a March 17 outsourcers bikes from March 9 sale, or Mar 27 sale includes four bikes from the initial balance & eight bikes from March 22 purchase. 1/2 is need.
Now what you mean by inventory?All the products, materials, and things that a company keeps on hand in anticipation of selling them to customers for a profit are referred to as inventory. Example: If a newspaper seller utilizes a vehicle to distribute newspapers to clients, just the newspapers will be deemed inventory.
What are the four different categories of inventory?Raw materials/components, WIP, final products, and MRO are the four main categories of inventory.
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The two main types of e-commerce are
Answers
Answer:
B2B (Business to business) and B2C (Business to consumer)
A popular brand of pen is available in 10 colors and 3 writing tips. How many different choices of pens do you have with this brand?
Answers
The choices of pen that you are going to have based on the brand would be 30 pen.
How to solve for the choice of penWe have the brand of pen that is available to be 10 colors.
The writing tips that are available is said to be given as 3.
In order to get the total, we would have to carry out a multiplication.
That is, we would have to multiply the brand by the number of writing tips
Hence we would have 10 colors * 3 writing tips.
= 30 choices.
Therefore we would say that the choices of pen that we would get after multiplying is 30 pen.
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in the cash book, every cash receipt is______ and every cash payment is_______
Answers
Suppose that the amount of currency in circulation is $200 billion and the government prints $8 billion to finance its expenditures. If velocity and real GDP are constant, then the price level will rise by _____ percent and the amount of seigniorage will be _____ percent of the amount of currency in circulation.
Answers
The answer is 4 ; 4. If velocity and real GDP are constant, then the price level will rise by 4 percent and the amount of seigniorage will be 4 percent of the amount of currency in circulation.
we get the answer as 4 by (8 billion / 200 billion) * 100 = 4. The monetary income rate is number of times the money supply is used to purchase finished goods and services in a year. This rate is based on gross domestic product (i.e.GDP) and is calculated by dividing GDP by the money supply. It is also known as the velocity or speed of money.
The velocity of money ratio is used to measure the level of economic activity in an economy. It is an important indicator of economic health.
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During the summer between his junior and senior years, James Cook needed to earn sufficient money for the coming academic year. Unable to obtain a job with a reasonable salary, he decided to try the lawn care business for three months. After a survey of the market potential, James bought a used pickup truck on June 1 for $1,410. On each door he painted "James Cook Lawn Service, Phone 471-4487." He also spent $650 for mowers, trimmers, and tools. To acquire these items, he borrowed $2,700 cash by signing a note payable promising to pay the $2,700 plus interest of $85 at the end of the three months (ending August 31).
By the end of the summer, James had done a lot of work and his bank account looked good. This prompted him to wonder how much profit the business had earned.
A review of the check stubs showed the following: Bank deposits of collections from customers totaled $12,800. The following checks had been written: gas, oil, and lubrication, $970; pickup repairs, $310; mower repair, $300; miscellaneous supplies used, $190; helpers, $5,200; payroll taxes, $210; payment for assistance in preparing payroll tax forms, $40; insurance, $165; telephone, $300; and $2,785 to pay off the note including interest (on August 31). A notebook kept in the pickup, plus some unpaid bills, reflected that customers still owed him $850 for lawn services rendered and that he owed $190 for gas and oil (credit card charges). He estimated that the cost for use of the truck and the other equipment (called depreciation ) for three months amounted to $760.
Required:
1. Prepare a quarterly income statement for James Cook Lawn Service for the months June, July, and August. Assume that the company will not be subject to income tax.
Answers
The income statement for James Cook Lawn Service shows a balance of $5,120.
The quarterly income statement for James Cook Lawn Service for the months of June, July, and August would look as follows:
Income Statement (Quarterly)
For the Months Ended August 31
Revenues:
Collections from customers $12,800
Accounts receivable $850
Total Revenues $13,650
Expenses:
Gas, oil, and lubrication $970
Pickup repairs are $310
Mower repair $300
Miscellaneous supplies used $190
Helpers $5,200
Payroll taxes $210
Payment for assistance $40
Insurance $165
Telephone $300
Depreciation $760
Interest expense of $85
=$970 + $310 + $300 + $190 + $5,200 + $210 + $40 + $165 + $300 + $760 + $85 = $8,530
Total Expenses $8,530
Net Income = Revenues - Expenses
Net Income $5,120
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Adams Furniture receives a special order for 10 sofas for a special price of $6,400. The direct materials and direct labor for each sofa are $160. In addition, supervision and other fixed overhead costs average $180 per sofa.
Required:
a1. What is the impact on operating income from accepting the special order?
a2. Based solely on a short-term financial analysis, should Adams accept the special order?
b1. If Adams is currently operating at full capacity, what would be the opportunity cost per unit for lost sales to regular customers if the special sales order is accepted and the selling price per unit on regular sales equals $750?
b2. Based solely on a short-term financial analysis, should Adams accept the special order if it is currently operating at full capacity?
Answers
The operating income from special order is $1400 and the opportunity cost per unit for lost sales to regular customers is $430.
What is the impact of the special order on the operating income?a1. To determine the impact on operating income from accepting the special order, we need to calculate the total cost per sofa and compare it to the special price of $6,400 for 10 sofas.
Total cost per sofa = Direct materials + Direct labor + Fixed overhead
Total cost per sofa = $160 + $160 + $180
Total cost per sofa = $500
Revenue from special order = $6,400
Operating income from special order = Revenue - Total cost
Operating income from special order = $6,400 - ($500 x 10)
Operating income from special order = $1,400
Therefore, the impact on operating income from accepting the special order is an increase of $1,400.
a2. Based solely on a short-term financial analysis, Adams should accept the special order since it will result in an increase in operating income.
b1. If Adams is currently operating at full capacity, accepting the special order will require the company to forgo regular sales to its customers. The opportunity cost per unit for lost sales to regular customers can be calculated as follows:
Opportunity cost per unit = Selling price per unit - Total variable cost per unit
Opportunity cost per unit = $750 - $320
Opportunity cost per unit = $430
Therefore, the opportunity cost per unit for lost sales to regular customers is $430.
b2. Based solely on a short-term financial analysis, whether Adams should accept the special order if it is currently operating at full capacity depends on whether the contribution margin from the special order is greater than the opportunity cost per unit for lost sales to regular customers.
Contribution margin per unit = Selling price per unit - Total variable cost per unit
Contribution margin per unit = $6,400 / 10 - $320
Contribution margin per unit = $640 - $320
Contribution margin per unit = $320
Since the contribution margin per unit of $320 is greater than the opportunity cost per unit for lost sales to regular customers of $430, Adams should accept the special order. However, it's worth noting that accepting the special order could have long-term consequences on the company's relationships with its regular customers.
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In which of these do homeowners own BOTH the home and the
land it sits on?
cooperative
timeshare
condominium
townhouse
Answers
Answer:
time share is the answer or townhous