Raymond estimates the fixed costs associated with opening a new bank branch are $500,000. He estimates the branch will attract 1,000 new customers who will cost $50/year to service each of their accounts. He also expects to generate $100,000 in fees annually from these accounts. What will be the total cost of opening the new branch and remaining open for one year?
What will be an ideal response?
Total cost = Fixed costs + Variable costs = $500,000 + 1,000 × $50 = $550,000
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Norwood, Inc purchased a crane at a cost of $80,000 . The crane has an estimated residual value of $5,000 and an estimated life of 8 years, or 12,500 hours of operation. The crane was purchased on January 1, 2016 and was used 2,700 hours in 2016 and 2,600 hours in 2017. Refer to the information for Norwood, Inc, Based on this information, what method of depreciation will produce the maximum
depreciation expense in 2017? a. Straight-line b. Double-declining-balance c. Units-of-production d. All methods produce the same expense in 2017.
In contrast to distribution centers, storage warehouses are designed to move goods rather than just house them
Indicate whether the statement is true or false
A(n) ________ is a system that links invited groups of suppliers and partners over the Web, allowing companies to collaborate with suppliers they trust without having to share sensitive information with others
A) corporate Web site B) search engine C) intranet D) private exchange E) professional network
The maximum allowable expenditure is the
a. appropriation. b. allowance. c. allocation. d. committed fixed cost.