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Louis Company sells a single product at a price of $65 per unit. Variable costs per unit are $45 and total fixed costs are $625,500. Louis is considering the purchase of a new piece of equipment that would increase the fixed costs to $800,000, but decrease the variable costs per unit to $42. Required: If Louis Company expects to sell 44,000 units next year, should they purchase this new equipment? Write a short essay explaining your choice - be sure to use figures to support your decision.
Finch's taxable income for the current year is $100,000, and it distributes $200,000 to each shareholder. Betty's stock basis at the end of the year is:
Each drum requires 6 gallons of chemicals and one plastic drum
The CFO for a corporation deliberately misstates expenses on the income statement purely out of a sense of loyalty to his CEO and the company. The CFO will receive no financial incentive for this misstatement. In fact, he risks losing his job by d..
rankine company estimates its bad debts expense by aging its accounts receivable and applying percentages to various
Your posts are very good and state that management should focus on the success of the business rather than managing income to their benefit. This gets into ethics, where if you keep doing the right thing you will reap the benefits with bonus's and..
jardon painting paints the interiors and exteriors of homes and commercial buildings. the company uses and
general motors corporation disclosed estimated product warranty payable for comparative years as follows in millions
Donated equipment for which the fair value has been determined should be recorded as a debit to the appropriate equipment account and a credit to:
Write a report on Internal Controls
Jim received an insurance recovery of 80% of the value of the car at the time of the accident. If Jim's AGI for the year is $50,000, determine his deductible loss on the car.
triway packaging corporation manufactures and sells a wide variety of packaging products. performance reports are
Jeppson Company will receive $50,000 in five years when the interest rate is 6%. Compute the present value of this payment.
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