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Balance sheet Essay

According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 50 new workstations at a cost of $250,000 each and also spends $5 million for an addition to its assembly plant to accommodate the new workstations.

According to the cost allocation methods used in the company’s accounting system and described in the Help section for the Operations Report for any of the four geographic regions, if a company spends $5 million to advertise its camera lines in North America, assembles and ships 300,000 entry-level cameras and 200,000 multi-featured cameras to its North American dealers, derives revenues of $80 million from its sales of entry-level cameras and
$120 million from the sales of its multi-featured cameras in North America, then

50% of the $5 million in advertising expenditures will be allocated to the costs of advertising for entry-level cameras and 50% will be allocated to the costs of multi-featured cameras.

70% of the $5 million in advertising expenditures will be allocated to the costs of advertising for entry-level cameras and 30% will be allocated to the costs of multi-featured cameras.

the per camera advertising costs for both entry-level and multi-featured cameras will be $10.00.

40% of the $5 million in advertising expenditures will be allocated to the costs of advertising for entry-level cameras and 60% will be allocated to the costs of multi-featured cameras.

the per camera advertising costs for entry-level cameras will be 50% larger than the per camera advertising costs for multi-featured cameras.


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