The owner of Cafe Bakka is considering investing in a new point-of-sale system. He spent $10,000 on his current point-of-sale system five years ago. The new point-of-sale technology will cost $25,000, and will dramatically improve the speed at which his counter staff will be able to take orders, and reduce the owner's administrative work. How should the owner account for the cost of the current point-of-sale technology when performing the capital budgeting analysis to determine whether or not to purchase the new point-of-sale technology? a. He should ignore the cost of the current point-of-sale system when evaluating the cost of the new point-of-sale system. b. He should include the cost of the current point-of-sale system as part of the cost of the new point-of-sale system.
Answers
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Related Questions
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product Number of Units Labor Hours Per Unit Machine Hours Per Unit Blinks 1,000 4 5 Dinks 2,000 2 8 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $72,000. Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs. The single plantwide rate, if it is based on machine hours instead of labor hours, is a.$7.43 per machine hour b.$19.50 per machine hour c.$9.00 per machine hour d.$4.00 per machine hour
Selected Income Statement Data - for the year ending December 31, 2017: Net sales $4,885,340 Cost of goods sold (2,942,353 ) Selling expenses (884,685 ) Operating income 1,058,302 Interest expense (55,240 ) Earnings before income taxes 1,003,062 Income tax expense (401,225 ) Net income $ 601,837 Selected Statement of Cash Flow Data - for the year ending December 31, 2017: Cash flows from operations $1,456,084 Capital expenditures $745,862 Wilmington Corporation's times interest earned ratio in 2017 was: A. 20.57 B. 19.16 C. 10.89 D. 18.15
Terrence needs to deliver negative feedback to an employee, Chad, using his company's appraisal software. Before delivering the feedback, he should first Multiple Choice meet with Chad in person and establish goals for improvement. discuss Chad's poor performance with other managers in the company. send a company-wide email reiterating key performance objectives. rank the performance of each employee on a scale of one to ten. privately warn Chad's coworkers that they may face increased scrutiny due to Chad's ongoing poor performance.
Do you think Ford analyzed the problem of redesigning the Pinto fuel tank safety in a reasonable way? Why?
Estimated machine-hours 8,400
Actual manufacturing overhead $ 352,960
Actual machine-hours 8,460
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
The applied manufacturing overhead for the year is closest to:_________.
A. $357,012
B. $354,474
C. $355,489
D. $352,951
Answers
Answer:
B. $354,474
Explanation:
The Overheads that are initially included in Work In Process before determination of Actual Overheads are called Applied Overheads.
Applied Overheads = Predetermined overhead rate × Actual level of Activity.
Thus said we need to first determine the Predetermined overhead rate :
Predetermined overhead rate = Budgeted Overheads / Budgeted Activity
= $ 351,960 / 8,400 machine hours
= $41.90 per machine hour
Therefore,
Applied Overheads = $41.90 × 8,460 machine hours
= $354,474
Conclusion :
The applied manufacturing overhead for the year is closest to: $354,474
Answers
Answer:
$1,260
Explanation:
The computation of amount of interest income is shown below:-
Principal $27,000
Rate of interest 8%
Interest for 7 month in 2014 $1,260
($27,000 × 8% × 7 ÷ 12)
Interest for 5 months in 2015 $900
( $27,000 × 8% × 5 ÷ 12)
12 months from 1 June 2014
to 31 may 2015 12 months
Interest $2,160
($27,000 × 8%)
T will repay the principal and one year interest
on may 31, 2015
($20,000 + $2,160) $22,160
So, Interest income to be reported on its 2014 income statement is $1,260
a) What is the economic production quantity?
enter your response here units (round your response to two decimal places).
Answers
The economic production quantity (EPQ) is a formula used to determine the optimal production quantity that minimizes both holding and ordering costs. The economic production quantity for Race One Motors is 2043.08 units.
In the case of Race One Motors, we need to find the ideal production quantity that will help the company maintain its inventory while keeping its costs at a minimum.
Using the given information, we can calculate the EPQ as follows:
EPQ = sqrt[(2AO) / H]
Where,
A = annual usage rate of subcomponents
O = ordering cost per order
H = holding cost per item per year.
Plugging the values, we get:
EPQ = sqrt[(2 x 31250 x 200) / 6]
EPQ = sqrt[(12500000) / 6]
EPQ = 2043.08
Therefore, the economic production quantity for Race One Motors is 2043.08 units. This means that if the company produces this amount of subcomponents, it will be able to minimize its holding and ordering costs.
It is important for Race One Motors to determine the EPQ because it helps the company to optimize its production and inventory management. By producing the optimal quantity, the company can reduce its holding costs, which include storage, insurance, and handling costs. At the same time, by minimizing the number of orders placed, the company can also reduce its ordering costs, which include administrative and transportation expenses.
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Answers
The tax that needs to be reduced is $ 4.66 billion
Further Explanation
The amount (Deflationary / recessionary) gap =
Keynesian Spending Multiplier from government spending
k =
Tax Multiplier from tax
t =
Option 1: Increased government spending (Loosening / Expansionary Fiscal Policy) by
GovSpending (Gs) =
Option 2: Tax is reduced by (-)
Tax = =
In economics, deflation is a period in which prices generally fall and the value of money increases. Deflation is the opposite of inflation. If inflation occurs due to a large amount of money circulating in the community, deflation occurs due to a lack of money in circulation. One way to overcome deflation is to reduce interest rates.
In the macroeconomy, a recession is a condition when the gross domestic product (GDP) decreases or when real economic growth is negative for two quarters or more in one year. Recession can result in a simultaneous decline in all economic activities such as employment, investment, and corporate profits. Recession is often associated with falling prices (deflation), or, conversely, sharply rising prices (inflation) in a process known as stagflation. The economic recession that lasts long is called economic depression. The drastic decline in the level of the economy (usually due to severe depression, or due to hyperinflation) is called economic bankruptcy (economic collapse). Columnist Sidney J. Harris distinguishes the above terms in this way: "A recession is when a neighbor loses a job; depression is when you lose a job."
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Deflationary brainly.com/question/13135934
To Reduce Tax brainly.com/question/13135934
Details
Class: College
Subject: Business
Keywords: Deflationary, tax, recessionary
Final answer:
To close the remainder of the recessionary gap, taxes need to be reduced by approximately $11.67 billion.
Explanation:
To close the remainder of the recessionary gap of $10 billion, the government has approved a spending increase of $3 billion. The question asks how much taxes need to be reduced to make up the difference. We can use the concept of the Marginal Propensity to Consume (MPC) to find the answer.
The MPC represents the proportion of additional income that individuals spend. In this case, the MPC is given as 0.6. Therefore, for every additional dollar of income, individuals will spend $0.6.
To determine how much taxes need to be reduced, we can use the formula:
Tax Reduction = (Remainder of Recessionary Gap)/MPC
Substituting the values, Tax Reduction = $7 billion/0.6 = $11.67 billion. Therefore, taxes need to be reduced by approximately $11.67 billion to close the remainder of the recessionary gap.
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Answers
Answer:
A. consumer surplus that is generated from the introduction of a new product.
Explanation:
The product-variety externality is defined as consumer get the surplus that is generated from the introduction of a new product and entry of a new firm conveys a positive externality on consumers. It arises as new firms offer products that differ from those of the existing firms, however, it does not happen under perfect competition. Competitive market lead to efficient outcomes, unless there are externalities.
Answers
Answer:
Option D is correct one.
Saving plus net taxes equals planned investment plus government purchases.
Explanation:
Total spending equals total output if and only if leakages are equal to injections—that is, only if the sum of saving and net taxes is equal to the sum of planned investment spending and government purchases.
Answer:
D. only when the sum of saving and investment equals the sum of net taxes and government expenditures
Explanation:
Based on the scenario being said in the question where it is asked that which total spending will equal total, that will happen only when the sum of the savings and investment.
Total spending can only equals total output if and only if leakages will be equal to injections, in other words, only if the sum of saving and net taxes (addition of Saving and Nets) is equal to the sum of planned investment spending and government purchases (addition of planned investment and government purchases.)