The mistaken classification of the product costas an expense would result in an understatement of the cost of goods sold by $20,500. This would also lead to an overstatement of the net income by the same amount.
To calculate the correct net income for the year, we need to deduct $20,500 from the reported net income.
The cost per unit of the product would be $20,500 divided by 2,050 units, which is $10 per unit.
The cost of goods sold would be 1,025 units sold multiplied by $10 cost per unit, which is $10,250.
Therefore, the corrected net income would be the reported net income minus $20,500, which is the mistaken expense, minus $10,250, which is the corrected cost of goods sold.
If the bonus paid to management is based on net income, then the mistaken classification would have led to a higher bonus payment. The corrected net income would result in a lower bonus payment by 2% of the difference between the reported and corrected net income.
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B. Allocative efficiency occurs when an economy no longer relies on voluntary exchange.
C. Allocative efficiency occurs when an economy achieves equity.
D. Allocative efficiency occurs when production is in accordance with consumer preferences.
Answer:
D. Allocative efficiency occurs when production is in accordance with consumer preferences.
Explanation:
Allocative efficiency occurs where price equals marginal cost. Price equals the amount consumers willingly pay for a product, so allocative efficiency occurs where marginal utility = marginal cost
Allocative efficiency is achieved when goods and services are produced and distributed in accordance with what consumers demand or desire, ensuring optimal allocation of resources.
Allocative efficiency occurs when production is in accordance with consumer preferences. In other words, this economic principle is achieved when goods and services are distributed optimally in response to consumer demand—that is when the mix of goods produced represents what society most desires. For example, if consumers need more of good X and less of good Y, the economy should reallocate resources to produce more of good X and less of good Y to achieve allocative efficiency.
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The answer is B. $300
Answer:
interest revenue 13,095.1
Explanation:
We will calcualte the loan interest:
first year
machine value x interest rate = interest revenue first year
250,000 x 10% = 25,000 interest revenue for the first year
cuota - interest = amortization
144,049 - 25,000 = 119.049 amortization
carrying value
250,000 - 119,049 = 130.951
second year
carrying value x interest
130,951 x 10% = 13,095.1 interest revenue for the second year
amortization
144,049 - 13,095.1 = 130.953,9
For the second year, the interest revenue will be of 13,095.1