Answer: $0.60
Price per loaf: $2
Discount given for its bread at the end of the day= 70%
Solution:
Salvage value is the estimated resale value of a product at the end of its useful life. Since theuseful life of the loaf is 1 day and it was sold at the end of the day at 70%off, the salvage value is
$2 × (1 - 70%)
$0.60.
The salvage value of the bread from Bakery A at the end of the day, following a 70% discount, is $0.10 per loaf. This is calculated by subtracting the cost to make the bread ($0.50) from the discounted selling price ($0.60).
The salvage value of the bread from Bakery A can be calculated by subtracting the cost of production from the discounted selling price. The initial selling price of the bread is $2.00, and the cost to make a loaf is $0.50. However, at the end of the day, Bakery A gives a 70% discount on its bread. So, the discounted selling price is now 30% of the initial price, which is $2.00 * 0.30 = $0.60.
Given that the cost to make the bread is $0.50, the salvage value of the bread is the discounted selling price of $0.60 minus the cost to make the bread which is $0.50. So, the salvage value is $0.60 - $0.50 = $0.10.
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2. Using Break Even Analysis, provide a unique mathematical example to support you answer. (Calculate the breakeven point for a base example, then increase the selling price and re-calculate your breakeven point.) Label all numbers in your examples."
Answer:
decrease
1. fixed cost is 100
variable cost is 10
price = 20
100 / ( 20 - 10) = 10
2. fixed cost is 100
variable cost is 10
price = 30
100 / (30 - 10) = 5
Explanation:
Answer:
$21,000
Explanation:
Preparation of income statement
Income statement of Pink Arrangements for the year ended December 31, 2018.
REVENUE:
Service Revenue 84,000
Less EXPENSE:
Insurance Expense (2,500)
Utilities Expense (1,500)
Rent Expense (12,000)
Salaries Expense (47,000)
NET INCOME 21,000
Therefore the Income statement of Pink Arrangements for the year ended December 31, 2018 will be shows the amount of $21,000
The income statement of Pink Arrangements for the fiscal year ending 2018 is prepared by subtracting the total operating expenses (Insurance Expense, Utilities Expense, Rent Expense, and Salaries Expense) from the Service Revenue. The result is an Operating Profit of $21,000.
To prepare the income statement of Pink Arrangements for the year ended December 31, 2018, you start by calculating the Gross Revenue. In this case, the Service Revenue of $84,000 is the Gross Revenue since the company is a service company.
From the Gross Revenue, we deduct the operating expenses - Insurance Expense, Utilities Expense, Rent Expense, and Salaries Expense. This gives us the Operating Profit or Loss. The calculations are as follows:
With this, you can conclude that the Operating Profit of Pink Arrangements for the fiscal year ending December 31, 2018 is $21,000.
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Answer:
$874
Explanation:
Calculation for Simon's additional Medicare tax
Based on the information given we were told Simon has a MAGI of the amount of $223,000 in which part of it is for wages income of the amount of $185,000 ($223,000 -$38,000)
while the amount of $38,000 is the net investment income which means that Samson MAGI is below the threshold limit of the amount of $200,000, therefore tax rate of 3.8% tax will be applied.
Now let calculate the additional Medicare tax
Additional Medicare tax = ($38,000-$15,000)*3.8%
Additional Medicare tax =$23,000*3.8%
Additional Medicare tax = $874
Therefore Simon's additional Medicare tax is:874
Simon's additional Medicare tax is $207. This is calculated by taking 0.9% of his income that exceeds the $200,000 threshold for single filers, which equals to $23,000 in Simon's case.
The student, Simon, needs to calculate his additional Medicare tax. As his MAGI, or Modified Adjusted Gross Income, is $223,000, he surpasses the threshold for single filers, which is $200,000. Therefore, the additional Medicare tax would apply to his income above this limit.
The Additional Medicare Tax is set at 0.9%, and it applies to the amount that exceeds the threshold. For Simon, this excess is $23,000 ($223,000 - $200,000). So, Simon's Additional Medicare Tax is 0.9% of $23,000, which calculates to $207.
In the context of Medicare taxes, it's important to remember that the tax rates are designed to increase as the income increases. Unlike the Social Security tax, there is no upper ceiling on the Medicare tax. The purpose of Medicare is to provide health care for the elderly.
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Answer: a. Brands enhance loyalty.
Explanation:
Brands enhance loyalty because people are more likely to identify with a symbol than with something that has a general identity. When a company has a brand therefore, it will enhance the loyalty of its consumers as they look to identify with that brand.
Take Adidas for instance, the three stripes logo is so iconic that people can sometimes have entire wardrobes of Adidas apparel to show those three stripes off and show that they identify with it. This is the benefit that Nancy stands to gain with branding.
Answer:
If disposable income increases by $5 billion and consumer spending ... spending by $100 billion and the marginal propensity to consume is 0.8. ... Suppose investment spending increases by $50 billion, and as a result real GDP increases by $200 billion. ... deliberate changes in taxation and/or government spending.
Explanation:
Answer:
spreading the cost of an asset over its useful life to the entity.
Explanation:
The depreciation is a non-cash expense that should be charged over the fixed assets i.e. land, buidling, car, etc
It is an expense so the same should be shown on the debit side of the income statement
Also the cost of an asset minus the salvage value divided by the useful life could be spreaded as the depredciation expense by using straight-line method