After reading the problem where states the cost of making killer whales. In order to understand this much better it would be necessary to make a table showing the total cost and average total cost of the production. It might help you better understand the production of false killer whales.
I hope this helps, Regards.
The production of fake killer whales exhibits economies of scale, due to the significant decrease in cost per unit after the initial investment for the mold.
Based on the provided information, the production of fake killer whales exhibits characteristics of economies of scale. Economies of scale is a concept in finance and economics referring to the cost advantage that a business obtains due to expansion. In this instance, there's a high initial cost ($16,000) for producing the first fake whale, mainly because of the cost of creating the mold. However, once that mold is created, it can be reused to produce additional whales at a lower cost ($5,000).
Therefore, the cost per unit decreases with each additional whale produced, which is a key characteristic of economies of scale. Businesses usually try to achieve economies of scale to reduce their average cost and to increase their profitability. This method is especially effective when production involves a high fixed-cost component (like the mold in this case).
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Answer:
C) raise her deductible from $250 to $1,000
Explanation:
If Donna starts to drop all her coverages, then she will not only pay less, she wouldn't any insurance to cover her.
If she really needs to lower her insurance costs, the best way to do it is to raise her deductible. That way she will still be covered, but she will need to put more money in case of an accident. To be honest, generally car accidents cost thousands, and increasing the deductible from by $750 is not really that much compared to what an insurance policy covers.
The deductible is the amount of the insurance claim that must be paid by the insured, the rest is paid by the insurance company.
Answer: Globalization
The process of conducting business on an international scale is a part of globalization.
Explanation:
Globalization refers to a process of interaction and integration between the people, companies, and governments across different nations in a seamless and integrated manner. It is driven by international trade, investment and supported with the use of information technology. It is interdependence of nations around the world advanced through free trade. It raises the standard of living in poor and less developed nations through the creation of job opportunities and improved access to goods and services.
The answer is globalization. This is when you are now bringing your economy from domestic to international level where you are now engaging in business transactions with other countries overseas. There will be many hurdles but these are necessary when competing in the global market.
Answer:
A registered representative would be permitted to make a telephone solicitation at 9:30 PM to an individual in the same time zone who has chosen to opt out of the "Do Not Call" regulations.
Answer:
The amount of depreciation expense recognized in Year 2= $7,800.
Explanation:
Determine the depreciation base
The depreciation base = Acquisition cost - Residual/Salvage value.
The depreciation base = 49,000 - 5,000
The depreciation base = $44,000.
Determining the depreciation rate
The depreciation rate = depreciation base / Useful life
The depreciation rate = 44,000/10
The depreciation rate = $ 4,400.
To determine depreciation % rate
Depreciation % rate = (The depreciation rate / depreciation base) × 100
Depreciation % rate = (4,400 / 44,000) × 100
Depreciation % rate = 10 %
But since Missouri Co. uses double declining balance method of depreciation, the correct depreciation % rate is 10 × 2 = 20%
Determining the depreciation expense for year 2
Year 2 depreciation expense is computed as follows:
(Acquisition cost - year 1 depreciation expense) × Depreciation % rate
Depreciation expense for year 2 is computed as:
Acquisition cost × Depreciation % rate = 49,000 × 20%
Year 1 depreciation expense = $9,800.
Therefore year 2 depreciation expense = (49,000 - 9,800.) × 20%
Therefore year 2 depreciation expense = $ 7,800.
The amount of depreciation expense recognized in Year 2 using the double declining-balance method is $8,820.
The amount of depreciation expense recognized in Year 2 can be calculated using the double declining-balance method. With a truck cost of $49,000, an expected useful life of 10 years, and a salvage value of $5,000, the yearly depreciation rate can be calculated as:
Depreciation rate = 2 / useful life
= 2 / 10
= 0.2 (or 20%)
In Year 2, the depreciation expense can be calculated as:
Depreciation expense = Previous year's book value x Depreciation rate
Book value at the start of Year 2 = Cost - Accumulated depreciation in Year 1 = $49,000 - Depreciation expense in Year 1
Let's assume that the depreciation expense in Year 1 was $4,900 (10% of the cost). Therefore, the book value at the start of Year 2 would be $49,000 - $4,900 = $44,100.
Then, the depreciation expense in Year 2 would be-
= $44,100 x 20%
= $8,820.
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Answer:
c
Explanation: