Answer:
$270,000
Explanation:
Calculation of total manufacturing cost assigned to Job 436
Direct Materials
Dept A $50,000
Dept B $10,000
Direct Labor
Dept A ($80,000 x 1/2) $40,000
Dept B $60,000
Manufacturing Overheads
Dept A $80,000
Dept B ($60,000 x 50%) $30,000
Total $270,000
Therefore,
The total manufacturing cost assigned to Job 436 was $270,000.
General Mattress Company makes Memory Foam mattresses, a mass-market high-volume product, and Magnetic Levitation mattresses, a premium low-volume product. The company uses a traditional cost allocation with a single cost pool. It is planning to implement activity-based costing (ABC). After implementing ABC, the company will likely find that the traditional cost allocation: Group of answer choices
Answer:
Answer is explained in the explanation section below.
Explanation:
First of all, this question is not complete and lacks the group of answer choices. However, I have found that question with complete options on the internet.
So,
The Correct option is: D
Option D = Not enough information
Reasoning:
For overestimated or underestimated or not full information required i.e. cost under traditional method and cost under activity based cost method , both information required for compare methods cost under each method.
Under Activity base costing all indirect cost is applied as per activities use by each product but under traditional method only one key factor use for applied overheads i.e. direct labor hours or machine hours etc.
Atul purchased goods costing Rs 50000 at an invoice price,which is 50% above cost.. on invoice price je enjoyed 15% trade discount and Rs 3750 cash discount on cash payment of goods in lump sum at the time of purchase ...the purchase price to be recorded in the books will be
Answer: Rs 63750
Explanation:
Since Atul purchased goods costing Rs 50000 at an invoice price,which is 50% above cost. Then the purchase of the goods cost:
= 50000 × (100% + 25%)
= 50000 × 125%
= 50000 × 1.25
= Rs 75000
We then deduct the trade discount of 15% to get the purchase price to be recorded in the book. This will be:
= 75000 × (100% - 15%)
= 75000 × 85%
= 75000 × 0.85
= 63750
Therefore, the answer is Rs63750
On January 1, 2018, Advanced Airline purchased a used airplane at a cost of $60,500,000. Advanced Airline expects the plane to remain useful for eight years (5,000,000 miles) and to have a residual value of $5,500,000. Advanced Airline expects the plane to be flown 1,100,000 miles the first year and 1,200,000 miles the second year.
Requirements
1.Compute first-year (2019) depreciation expense on the plane using the following methods:
a.Straight-line
b.Units-of-production
2.Show the airplane’s book value at the end of the first year for the two methods.
Answer:
Results are below.
Explanation:
First, we need to calculate the annual depreciation using the straight-line method:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (60,500,000 - 5,500,000) / 8
Annual depreciation= $6,875,000
Now, using the units of production method:
Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles operated
Annual depreciation= [(55,000,000 / 5,000,000)]*1,100,000
Annual depreciation= $12,100,000
Finally, the book value:
Book value= purchase price - accumulated depreciation
Straight-line:
Book value= 60,500,000 - 6,875,000= $53,625,000
Units-of-production:
Book value= 60,500,000 - 12,100,000= $48,400,000
The following is a list of account titles and amounts (dollars in millions) from a recent annual report of Calvin, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families:
Buildings and improvements $195
Prepaid expenses and other current assets 165
Allowance for doubtful accounts 39
Other noncurrent assets 210
Accumulated amortization (other intangibles) 819
Cash and cash equivalents 636
Goodwill 469
Machinery, equipment, and software 418
Accumulated depreciation 417
Inventories 300
Tools, dies, and molds 71
Other intangibles 1,359
Land and improvements 15
Accounts receivable 641
Required:
Prepare the asset section of the balance sheet for Calvin, Inc., classifying the assets into Current Assets, Property, Plant, and Equipment (net), and Other Assets.
Answer:
ASSETS
NON -CURRENT ASSETS
Buildings and improvements 195
Land and improvements 15
Other intangibles 1,359
Machinery, equipment, and software 418
Tools, dies, and molds 71
Accumulated depreciation (417)
Goodwill 469
Accumulated amortization (other intangibles) (819)
TOTAL NON -CURRENT ASSETS 1,291
CURRENT ASSETS
Inventories 300
Prepaid expenses and other current assets 165
Allowance for doubtful accounts (39)
Accounts receivable 641
Other noncurrent assets 210
Cash and cash equivalents 636
TOTAL CURRENT ASSETS 1,613
TOTAL ASSETS 2,904
Explanation:
Non-current assets are assets of a long term nature ,exceeding period of 12 months.
Current assets are assets of a short term nature, not exceeding a period of 12 months.
Mark took a loan out for $25,690 to purchase a truck. At an interest rate of 5.2% compounded
monthly, how much total will he have paid after 5 years?
Answer: He would have to pay 33,299.42$
Explanation:
what is the relative worth of goods
Relative Value in Consumption is measured as the relative cost of the amount of goods and services such as food, shelter, clothing, etc., that an average household would buy. Historically this bundle has become larger as households have bought more over time.
Ely Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $60,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $9,000 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $18,000 and $30,000, respectively. Data on standard service hours and number of employees are as follows:
Data on standard service hours and number of employees are as follows:
Maint. Person. Dept. Dept.
Dept. Dept. X Y
Standard service hours used 100 50 300 150
Number of employees 5 10 45 45
Direct labor hours 50 50 250 250
Predetermined overhead rates for Departments X and Y, respectively, are based on direct labor hours.
What is the overhead rate for Department Y assuming the direct method is used?
a. $120.00
b. $218.00
c. $109.00
d. $250.00
Answer:
b. $218.00
Explanation:
Calculation to determine the overhead rate for Department Y assuming the direct method is used
First step
Department Y$30,000
Maintenance Department $20,000
($60,000 × 150/450)
Personnel Department $4,500
($9,000 × 45/90)
Total $54,500
Now let calculate the overhead rate for Department Y
Department Y Overhead rate=$54,500/250
Department Y Overhead rate = $218
Therefore the overhead rate for Department Y assuming the direct method is used will be $218
has 8.3 million shares of common stock outstanding. The current share price is $53, and the book value per share is $4. also has two bond issues outstanding. The first bond issue has a face value of $70 million and a coupon rate of 7 percent and sells for 108.3 percent of par. The second issue has a face value of $60 million and a coupon rate of 7.5 percent and sells for 108.9 percent of par. The first issue matures in 8 years, the second in 27 years. (a) What are capital structure weights on a book value basis
Answer:
Equity = 20.34%Debt = 79.66%Explanation:
Book value of stock:
= 8,300,000 * 4
= $33,200,000
Total book value = BV of stock + BV of bonds
= 33,200,000 + 70,000,000 + 60,000,000
= $163,200,000.
Weight of Equity:
= 33,200,000 / 163,200,000
= 20.34%
Weight of debt:
= (70,000,000 + 60,000,000) / 163,200,000
= 79.66%
Marigold Corp. enters into a contract with a customer to build an apartment building for $1,069,900. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $153,300 to be paid if the building is ready for rental beginning August 1, 2021. The bonus is reduced by $51,100 each week that completion is delayed. Marigold commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability August 1, 2021 70 % August 8, 2021 20 August 15, 2021 6 After August 15, 2021 4 Determine the transaction price for this contract.
Answer:
$1,193,562
Explanation:
Calculation to Determine the transaction price for this contract.
First step is to calculate the probabilities
Probabilities
August 1, 2021 =70 % *$153,300
August 1, 2021 =$107,310
August 8, 2021= 20%*$51,100
August 8, 2021= $10,220
August 15, 2021 =6%*$102,200
($153,300-$51,100)
August 15, 2021 =$6,132
After August 15, 2021= 4%*$0
After August 15, 2021= $0
Now let calculate the transaction price for this contract.
Total transaction price =$1,069,900+ $107,310+$10,220+$6,132+$0
Total transaction price =$1,193,562
Therefore the transaction price for this contract will be $1,193,562
What do you need to file your taxes?
Answer:
w-2, Form 1040, and possibly Schedule (1... etc. )
Explanation:
(Gross Profit Method) Tim Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,000. Purchases since January 1 were $72,000; freight-in, $3,400; purchase returns and allowances, $2,400. Sales are made at 331/3% above cost and totaled $100,000 to March 9. Goods costing $10,900 were left undamaged by the fire; remaining goods were destroyed.
Instructions
(a) Compute the cost of goods destroyed.
(b) Compute the cost of goods destroyed, assuming that the gross profit is 331/3% of sales.
Answer:
a. $25,100
b. $33,433
Explanation:
Part a
Sales $100,000
Less Cost of Sales :
Opening Merchandise $38,000
Add Purchases $72,000
Add Freight In $3,400
Less Purchase Return and Allowance ($2,400)
Total 111,000
Less Undamaged Inventory ($10,900)
Total $100,100
Less goods destroyed ($25,100) ($75,000)
Gross Profit $25,000
Part b
Sales $100,000
Less Cost of Sales :
Opening Merchandise $38,000
Add Purchases $72,000
Add Freight In $3,400
Less Purchase Return and Allowance ($2,400)
Total 111,000
Less Undamaged Inventory ($10,900)
Total $100,100
Less goods destroyed ($33,433) ($66,667)
Gross Profit $33,333
Why do you think women occupy so few seats on boards of directors
Answer:
Women has always been discriminated against forever because of our sex. Men feel they should always be in charge so they should make more money
Danks Corporation purchased a patent for $405,000 on September 1, 2019. It had a useful life of 10 years. On January 1, 2021, Danks spent $99,000 to successfully defend the patent in a lawsuit. Danks feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2021?
Answer:
Amortization Expense for year 2021 $90,000
Explanation:
The computation of the amount that should be reported for patent amortization for the year 2021 is shown below:
But before that following calculations need to be done
The value of the patent as of 31st Dec, 2020
Purchase Value as of Sep 1,2019 $405000
Less:- Amortization Expense for the year 2019 $13,500
($405000 ÷ 10 × 4 ÷ 12)
Less:- amortization expense for the year 2020 $40500 ($405,000 ÷ 10)
Value of patent as on 1st Jan, 2021 $351,000
Add:- fees to defend $99000
New Book Value for the year 2021 $450,000
Now Remaining Useful Life 5 years
So,
Amortization Expense for year 2021 $90,000 ($450,000 ÷ 5)
explain the rational accounting system in a business organization
A short-term debt is the same thing as a
debt.
A. Current
B. Liquid
C. Tragic
Answer:
the answer is A. Current
In business, a message written to right a wrong is called a claim. Straightforward claims are those where the receiver is expected to readily agree with your message. These claims require a direct approach. To be an effective business communicator, you should familiarize yourself with the best practices for making direct claims and voicing complaints.
Required:
What should you include in the opening of a direct claim message?
Answer: A clear statement of the problem
Explanation:
The opening of a direct claim message should clearly state the problem that you would like to be addressed by the receiver and would set the tone for the rest of the message.
Claim messages are formal messages and as such, should be clear and concise so that the message is communicated effectively and there is a lesser chance of the message being misread. This is why the message should be clearly stated, so that the receiver understands it and responds in kind.
Cale Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Cale sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Cale that cost Cale $100 to buy from manufacturers, Cale would charge the hospital $107 to purchase these supplies.For years, Cale believed that the 7% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Cale decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:Activity Cost Pool (Activity Measure) Total Cost Total ActivityCustomer deliveries (Number of deliveries) $420,000 5,000 deliveriesManual order processing (Number of manual orders) 624,000 8,000 ordersElectronic order processing (Number of electronic orders)170,000 10,000 ordersLine item picking (Number of line items picked) 675,000 450,000 line itemsOther organization-sustaining costs (None) 650,000 Total selling and administrative expenses $2,539,000 Cale gathered the data below for two of the many hospitals that it serves—Georgetown and Providence (each hospital purchased medical supplies that had cost Cale $38,000 to buy from manufacturers): ActivityActivity Measure University Memorial Number of deliveries 16 28Number of manual orders 0 49Number of electronic orders 18 0Number of line items picked 190 210Required:1. Compute the total revenue that Cale would receive from Georgetown and Providence.2. Compute the activity rate for each activity cost pool.3. Compute the total activity costs that would be assigned to Georgetown and Providence.4. Compute Cale's customer margin for Georgetown and Providence.
Solution :
1. Calculation of total revenue
Total revenue = cost of goods sold + Markup 7% = Revenue
University = 38000 + 2660 = 40660
Memorial = 38000 + 2660 = 40660
Therefore, markup = cost of goods sold x market up
= 38000 x 7%
= 2660
2. Calculations of Activity rates
Activity rate = activity cost pool / total activity = activity rate
Customer deliveries = 420000 / 5000 = 84
Manual order processing = 624000 / 8000 = 78
Ele order processing = 170000 / 10000 = 17
Line time picking = 675000 / 450000 = 1.5
3. Calculations of Activity costs
Activity cost for University
Activity cost pool = Activity x Activity rate
Customer deliveries = 16 x 84 = 1344
Manual order processing = 0 x 78 = 0
Ele order processing = 18 x 17 = 306
Line time picking = 190 x 1.5 = 285
Total activity cost = 1935
Activity cost for Memorial
Activity cost pool = Activity x Activity rate
Customer deliveries = 28 x 84 = 2352
Manual order processing = 49 x 78 = 3822
Ele order processing = 0 x 17 = 0
Line time picking = 210 x 1.5 = 315
Total activity cost = 6489
4. Calculation of Customer margin
University Memorial
Sales revenue 40660 40660
Less : Cost of goods sold 38000 38000
Gross Margin 2660 2660
Less : Activity cost 1935 6489
Customer Margin 725 -3829
Returns on ABC, Inc. are forecast to be the following: State Probability Return Boom 0.25 30% Normal 0.65 15% Bust 0.10 -14% What is the standard deviation of this company’s stock? Returns on ABC, Inc. are forecast to be the following: State Probability Return Boom 0.25 30% Normal 0.65 15% Bust 0.10 -14% What is the standard deviation of this company’s stock? 11.82% 11.56% 11.32% 11.07% 10.83%
Answer:
Standard deviation=11.82%
Explanation:
Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks. Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .
Standard deviation is the sum of the squared deviation of the individual return from the mean return under different scenarios
Expected return (r) = (30% × 0.25 ) + (15% × 0.65) + (-14%× 0.10)=15.8%
Outcome (R- r )^2 × P
Boom (30%-15.8)^2× 0.25 = 50.05
Normal (15%-15.8)^2×0.65 = 0.47
Bust ( 13.6%- 15.8)^2 ×0.1= 89.10
139.63
Standard deviation =√139.63= 11.82%
Standard deviation=11.82%
Auditory Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 13,000 Actual fixed overhead incurred: $742,000 Standard fixed overhead rate: $15 per hour Budgeted fixed overhead: $720,000 Planned level of machine-hour activity: 48,000 If Auditory estimates four hours to manufacture a completed unit, the company's fixed-overhead budget variance would be:
Answer:
$22,000 unfavorable
Explanation:
Calculation to determine the company's fixed-overhead budget variance would be:
Using this formula
Fixed-overhead budget variance=Actual fixed overhead incurred-Budgeted fixed overhead
Let plug in the formula
Fixed-overhead budget variance=$742,000 – 720,000
Fixed-overhead budget variance = $22,000 unfavorable
Therefore the company's fixed-overhead budget variance would be:$22,000 unfavorable
The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $125,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030
Answer:
the fund balance is $1,727,056.25
Explanation:
The computation of the fund balance is shown below:
Given that
PMT = $125,000
NPER = 10
RATE = 7%
PV = $0
The formula is shown below:
= -FV(RATE,NPER,PMT,PV,TYPE)
After applying the above formula, the fund balance is $1,727,056.25
Here basically the future value formula should be applied
2- A local car dealer is advertising two leasing options for its new XT 3000 series sports car. Option A: is a standard 24-month lease of $1150 per month. In addition, this option requires a down payment of $4500, plus a $1000 refundable initial deposit. In option A, the lease payments are due at the beginning of every month. For example, the first lease payment (equal to $1150) is due at the beginning of month 1. Option B: In this option, the company offers a 24-month lease plan that has only a single up-front payment of $31000 (which is paid at the beginning of month one) Note: The initial deposit in option A will be refunded to the customer at the end of month 24. Assume an interest rate of 6% compounded monthly. Which option is better for the customer
Answer:
A. Interest rates wouldn't be so high. Customer would be able to afford this lease better.
The government of Uwannastan protects its newly privatized firms from foreign competition by imposing stringent barriers to international trade and foreign direct investment. As a result of this, the newly privatized firms will: have no control over production and pricing. import raw materials and many industrial goods at low tariffs. continue operating like State-owned enterprises continue operating like private companies under capitalism
Answer: Continue operating like State-owned enterprises
Explanation:
Newly privatized would imply that they were once government owned which means that they were probably monopolies. These new companies are protected from foreign competition which means that their goods will be the dominant ones in the economy.
They will therefore keep operating as though they are state-owned companies because their goods will be dominant making them monopolies which is what government owned companies usually are.
At which stage should Joan discuss the look and feel of her website with her website designer?
At the _____?______ stage, Joan should discuss the look and feel of her website with her website designer.
Answer:
Joan and Website Design
At the ____Visual ____Elements_____ stage, Joan should discuss the look and feel of her website with her website designer.
Explanation:
The visual elements stage details the visual style together with the visual brand that Joan has specified for her desired website. At this stage, the site architecture with some content is already in place. The website designer must have utilized such tools like style tiles, mood boards, and element collages to create the visual appeal that resonates with Joan's specifications and requirements.
On March 9, Phillips gave Jackson Company a 60-day, 12% promissory note for $5,200. Phillips dishonors the note on May 8. Record the entry that Jackson would make when the note is dishonored, assuming that no interest has been accrued. Assume Jackson expects collection will occur. (Use 360 days for calculation. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round intermediate calculations to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 1,525.)
Answer:
Jackson Company
Journal Entries:
Debit Accounts Receivable (Phillips) $6,0687
Credit Notes Receivable $5,200
Credit Interest on Notes Receivable $867
To record the reversal of the dishonored promissory note and the accruing interest for 60 days.
Explanation:
a) Data and Calculations:
March 9, 12% Promissory Note Receivable = $5,200
May 8, Note dishonored
Interest on note = 12% of $5,200 * 60/360 = $867
b) The above entries are made with the hope that collection will be made from Phillips eventually.
The following production data were taken from the records of the Finishing Department for June:
Inventory in process, June 1, 30% completed 4,000 units
Completed units during June 65,000 units
Ending inventory, 60% completed 65,000 units
The number of materials equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process, is:______
Answer:
the equivalent units of production related to the material is 126,000 units
Explanation:
The computation of the equivalent units of production related to the material is shown below:
= Completed units + Ending inventory units - Beginning inventory units.
= 65,000 units + 65,000 units - 4,000 units
= 126,000 units
hence, the equivalent units of production related to the material is 126,000 units
Explain what boundaries are and why they are important in decision-making.
Answer:
boundaries are that invisible line in social structure that people try not to cross lest by accident.
Explanation:
When you are making decisions you always have to think of the outcome or else you could end up doing something bad or wrong. Boundaries in decisions making are so you don't just go and do whatever without thinking. we as humans subconsciously try not to cross other people's boundaries for mainly two reasons. The first is it makes people feel uncomfortable. The second is that it brings out our inner guilt. if you cross someone's boundaries you will most likely realize it imededietly and to to back off instinctively.
I hope this helps!
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP price index for this year is calculated by dividing the ______________using___________ by the ________ using _____________and multiplying by 100.
Answer:
a (B) Value of all goods and services produced in the economy this year
this year's prices
Value of all goods and services produced in the economy in the base year
by the base year's prices
Explanation:
Here is the complete question
The GDP price index for this year is calculated by dividing the (A) Value of all goods and services produced in the economy in the base year (B) Value of all goods and services produced in the economy this year (C) cost of a given market basket of goods and services using 2) ______ (A) the base year's prices (B) this year's prices by the 3) ________ A) Value of all goods and services produced in the economy in the base year (B) Value of all goods and services produced in the economy this year (C) cost of a given market basket of goods and services using 4) ______ (A) the base year's prices (B) this year's prices
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP price index = (nominal GDP / Real GDP ) X 100
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
For example, country A produces 10 kg of rice at $10 per kg in 2019 and 50kg of beans at $30 per kg in 2018. In 2019, it produces 10 kg of rice at $20 per kg in 2019 and 50kg of beans at $40 per kg in 2019. 2018 is the base year.
Nominal GDP in 2018 = (10 x $10) + (50 x $30) = $1600
Nominal GDP in 2019 = (10 x $20) + (50 x $40) = $2200
Real GDP in 2018 = (10 x $10) + (50 x $30) = $1600
Real GDP in 2019 = (10 x $10) + (50 x $30) = $1600
GDP price index in 2019 = nominal gdp in 2019 / real gdp in 2019 ) x 100
(2200 / 1600 ) x 100 = 137.5
Jordan paid $30,000 for equipment two years ago and has claimed total depreciation deductions of $15,600 for the two years. The cost of repairs during the same time period was $2,000 while a major overhaul which extended the life of the equipment cost $7,000. What is Jordan's adjusted basis in the equipment at the end of the two-year period
Answer: $21400
Explanation:
Cost of equipment = $30,000
Depreciation = $15600
Cost of repairs = $2000
Overhaul = $7000
Jordan's adjusted basis in the equipment at the end of the two-year period will be:
= Equipment cost - Depreciation + Overhaul
= $30000 - $15600 + $7000
= $21,400
You are running a hypothetical e-business in this course. Suppose your company only have one employee and three customers who do not access your website frequently. Your company also does not need to process a lot of information; in this case, to save your money, which types of computers does your company need to fulfill such a computing need?
Answer:
do the challnge in brainly it gives u points !!!!
Explanation:
According to the given hypothetical e-business situation, simple personal computers can be used to fulfill the required computing needs.
What is e-business?"E-business is an electronic business or transaction in which user shares the information online. In this, information, products, and services can be shared between business, groups, and individuals and considered as an essential activities."
What is personal computer?"Personal computer is a computer which is a multi-purpose system and its size, capabilities and prize makes it feasible for individual use."
In the given situation, the analyses of data is less which can be fulfilled by the personal computers only and there is no need to purchase systems with special features. The employee can fulfill the requirements of current e-business with the help of any personal computer like desktop, laptop, etc.
To learn more about e-business and personal computer here
https://brainly.com/question/13165862
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The world Street Journal published that United Airlines is not covering its cost (the cost include both fixed and variable cost) in the route from Washington to San Francisco and therefore they should discontinue the flight in this route. Based on the above situation answer the following questions: 1.Do you think United should continue its flight from Washington to San Francisco? Explain. 2. What are the major condition United needs to check before ‘shut down’ its operation Washington to San Francisco? Explain
Answer:
Following are the solution to the given points:
Explanation:
In question 1:
No, airline through Washington to San Fransisco should not continue. It is because the airline could recover its constant but varying expenses, as mentioned in the article. Service would therefore not be able to endure failure. The airline should therefore avoid driving.
In question 2:
To determine whether the airline should close down or not, the US should equate the price with both the Average total cost. Each airline is required to close down its activities if its cost is reduced than AVC. If the price is higher therefore the AVC price will continue. Since, as per the report, the airline cannot also cover its variable costs, its activities must be stopped.