Answer:
$90,400
Explanation:
Mondale Winery depreciates it's equipment by making use of the group method.
The cost of equipment that was purchased in 2021 totaled $565,000
The residual value of the equipment was $54,000
The group depreciation rate is 16%
= 16/100
= 0.16
Therefore, the annual depreciation can be calculated as follows
Annual depreciation= Cost of equipment × Group depreciation rate
= $565,000×0.16
= $90,400
Hence the annual depreciation for the group is $90,400
Answer:
Firm should hire the 4th worker as MR > MC.
Explanation:
Here, we are comparing the marginal cost of hiring 4th worker with the revenue generated by the 4th worker.
Marginal cost of hiring 4th worker:
= Total cost with 4 workers - Total cost with 3 workers
= $4,600 - $4,000
= $600
Total revenue generated by the 4th worker:
= Number of units produced by 4th worker × Price of each unit
= 50 × $15
= $750
Therefore, the firm should hire the 4th worker as the marginal revenue of 4th worker is greater than its marginal cost.
Answer:
TVG
Times Interest Earned Ratio (TIER) = Earnings Before Interest & Taxes divided by Interest Expense
= $300,000/$$80,000 = 3.75 times
Explanation:
a) TVG Income Statement:
Revenue $3,000,000
Cost of goods sold 2,500,000
Gross profit $500,000
Depreciation 200,000
EBIT $300,000
Interest Expense 80,000
Pre-tax Income $220,000
b) TVG's TIER shows the number of times that its earnings before interest and taxes covers the interest expense. It shows the ability of the TVG to settle its maturing debt obligations from current earnings. It is an important financial performance measure which potential investors in TVG will use to gauge the ability of TVG to meet financial obligations from the earnings it generates.
Answer:
Direct Labor rate Variance $ 24840 Unfavorable
Labor Efficiency Variance $23520 favorable
Explanation:
Direct Labor rate Variance = Actual Hours * Actual Rate- Actual Hour * Standard Rate
Direct Labor rate Variance = 24840*15- 24840*14
= 372600- 347760
= $ 24840 Unfavorable
Labor Efficiency Variance = Actual Hours * Standard Rate- Standard Hour * Standard Rate
Labor Efficiency Variance = 24840*14- 4*6630*14
= 24840*14- 26520*14
= 347760 - 371280= $23520 favorable
Answer:
Horizontal integration
Explanation:
Integration is a strategy used by businesses to gain a better market share. It involves cooperating with other business owners to increase sales for both parties.
Horizontal integration is when businesses bate the same level in the value chain collaborate to increase profits.
In the give scenario Sanibel Autos Inc. merged with its competitor Vroom Autos Inc, and Sanibel Autos to use its technological competencies along with Vroom Autos' marketing capabilities to capture a larger market share.
The stage of value chain is when businesses prospect for customers. This interpretation enables them gain more customers.