Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10, n/30. Elkhorn returned merchan

Response:

D

Justification:

Answer:

idk sry have a good day

Explanation:

Answer:

NPV = negative 37,599

Explanation:

To determine the NPV of the new sewing machine, we subtract the investment from the present value of anticipated cash inflows.

Initial investment = Cost of machine + Training expenses - Salvage value

Initial investment = 2,450,000 + 85,000 - 250,000

Initial investment = 2,285,000

Year                                      DF(9%)   Present Value

1  Cash inflow     390,000  x 0.917      $357,798

2 Cash inflow     400,000  x 0.842    $336,672

3 Cash inflow     411,000   x  0.772     $317,367

4 Cash inflow     426,000  x 0.708     $301,789

5 Cash inflow     334,100  x 0.650     $217,077       (434,100 - 100,000)

6 Cash inflow     435,000  x 0.596    $259,376

7 Cash inflow     436,000 x 0.547     $238,507

7 Salvage value 400,000 x 0.547     $218,814  

     

Present Value of cash inflow             $2,247,401

Initial investment                                $2,285,000

NPV ($2,247,401 - $2,285,000)          (37,599)    

Conclusion: Hillsong should refrain from acquiring the new machine since the NPV is negative.      

To answer, "b. offer rebates and incentives for customers who purchase washing machines." Increasing a company's productivity must be strategically planned, ensuring there is demand in line with economic expectations. If a firm expands its capacity without sufficient demand, the outcome can be detrimental, especially during economic downturns. The described firm faces idle capacity and, thus, it is prudent to provide price incentives like discounts to encourage demand for washing machines, allowing the business to maintain operations until the economy rebounds.

Answer:

Income statement prepared under the absorption costing method

Sales 2,600,000

Less: Cost of Goods Sold

Beginning Inventory 0

Add: Cost of Goods Produced

Materials Used 1,218,000

Labor Costs 522,000

Variable Overhead 87,000

Fixed Overhead 130,500

Less: Ending Inventory (1,957,500/4,350)×350 (157,500)  1,800,000

Gross Profit 800,000

Less: Operating Costs:

Selling and Administrative Expenses:

Variable Sales/Administrative Costs (60,000)

Fixed Sales/Administrative Costs (25,000)

Net Profit 715,000

Explanation:

Product/Manufacturing Cost under Absorption Costing = Direct Materials + Direct Labor + Variable Overheads + Fixed Overheads

Period Cost under Absorption Costing  = All Non-Manufacturing Expenses