e bteee were © 7+. When the price of a certain mineral ore is increased from $15 te.$2iper tone, the mining company increased its production activity from 700 to12504pnes per week, find the elasticity of supply? 2 43- State the type of cost for each of the following? 1+ Depreciation 2- Raw material 3 Interest 4 Production. Energy 4 S- Manger salary 6- Electrical supply at the offices 7- Labor cost 8- Land cost eC Scanned with CamScannerFearn (016) FE, = BQ Ag = 1250-7092 $50 tas /veok Qh AP i = $2 DBE= 550 - |, 54 1250 =| =- Q- Le Ftd cost 2 Vorighle cast 3 Fiied ost b= vorinble tgs. 5_ Fixed cst fo F upd cove J Vanioble cost. CF int cot ‘Scanned with CamScanner« Question 2:.('20 marks) ory }XAn increas’ing annual uni form-gradiontsseries kogins at the end of the fourth year, and continues for 1 “eleven years. For what value of gradient, G. will the above series be equivalent to a uniform flow of Payments of $1,050, per month, for 23 years, at 11.% interest compound continuously? (7 marks) Scanned with CamScannercambondad cortingus : Lune ws Hyweeseaene | ‘Scanned with CamScanner‘Scanned with CamScannerne . 2 mo x Determine the minimum period to repay a Idan of $7,500 using equal annual payment of $1,00( starting.one year from now if the interest rate is 8%. compounded annuallv. (7 marks\ Scanned with CamScannerA rF | n yars Compu dad anhuadle x (ils moog)” =| \ \ 0.08 X(1+o.9¢)h/ ‘Scanned with CamScannerLectfemn fly the factor [" P 105, 134), then determine the numerical value using the values given below ~ Coady h casos9 IE oasate }oaae0: “] mares Scanned with CamScannerG-—eqaal,- paymanl ae WBS) Lg ye ee a oThO5S4 = Pts] O15 Ig. ‘Scanned with CamScannerfos = ‘Scanned with Camscanner20 FS Ex tat the beginning of Year 1. The asset has an estimated service .d depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight- line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. i: (10 marks) sy Ghoroaq Company acquired a plant asset life of 5 years. An employee has prepare The straighit-line ‘The sum-of-the- ‘The double-declining- method years’-digits method balance method Years ‘spa ‘sDG" ‘spc’ 1 90,000 150,00 200,000 2 90,000 120,009 120,000 & 3 90,000 90,000 72,000 Q 4 30,000 60,000 43,200 7 5 90,000¢ 30,000 F 14,800 F Total 450,000, 450,000 ___ 450,000 i. What is the cost of the asset being depreciated? (2 marks) HL. What amount, ifany, was used in the depreciation calculations for the salvage value for this asset? (2 marks) ill. Which method ‘will produce the highest charge to profit in Year 47 (2 marks) Iv. Which method. will produce the highest book value for the asset at the end of Year 37 (2marks) ¥. Ifthe asset is sold at the end o} ifthe asset is sold atthe ead of Year 3, which method would yield the highest gain (Or sowest loss) on ‘Support your answers with necessary calculation if required. Scanned with CamScannera Deaispa PD ok ihe oo welll gar p orcalaudate sy Ve P- Spe thoopon 56 lib. Thecfiniqht tin madah chacomse if hag tho hisyhort Jonridim) lyn es! : R aemgo009 $4000 fr sypt Bo th an 0 (159.900 +1299 9019200) = foe DDB B, =tsg0g00 = (209600 -+)20,000+72,060) = > ! i phn | anh fy la 4, "i ‘Scanned with CamScanner