Question 3<br><br> Total expenditure equals price times elasticity?<br> True or False

A company's operating income was $70,000 using variable costing for a given period. Beginning and ending inventories for that pe

AlladinOne [14]

Answer:

Operating Income Using Full Costing $

Operating income based on marginal costing 70,000

Add: Difference in inventory valuation (5,000 x $8) 40,000

Operating income based on absorption costing 110,000

Explanation:

In this case, we need to calculate difference between closing inventory and opening inventory (50,000 - 45,000= 5,000 units). The difference in inventory is valued at fixed factory overhead application rate of $8. The value of difference in inventory is added to the operating income reported by marginal costing.

6 0

3 years ago

Dove, Inc., had additions to retained earnings for the year just ended of $630,000. The firm paid out $105,000 in cash dividends

Andreas93 [3]

Answer:

(A) Earnings per share = $1.19 per share, Dividends per share = $0.17 per share, and book value per share is $11.69 per share

(B) Market-to-book ratio = 2.52 times, and the price-earnings ratio is 24.79 times

(C) Price-sales ratio is 1.73 times

Explanation:

(A) Earning per share = (Net income) ÷ (Number of shares)

where,

Net income = Retained earnings + dividend paid

= $630,000 + $105,000

= $735,000

And, the number of shares are 620,000 shares

Now put these values to the above formula

So, the value would equal to

= ($735,000) ÷ (620,000 shares)

= $1.19 per share

Dividend per share = (Total dividend) ÷ (number of shares)

= ($105,000) ÷ (620,000 shares)

= $0.17 per share

Book value per share = (Total equity) ÷ (number of shares)

= $7,250,000 ÷ (620,000 shares)

= $11.69 per share

(B) Market to book ratio = (Market price per share) ÷ (book value per share)

= $29.50 ÷ $11.69

= 2.52 times

Price-earnings ratio = (Market price per share) ÷ (Earning per share)

= $29.50 ÷ $1.19

= 24.79 times

(C) Price sales ratio = (Market price per share) ÷ (Total sales per share)

where,

Total sales per share = (total sales) ÷ (Number of shares)

= (10,550,000) ÷ (620,000 shares)

= $17.01 per share

So, the price sales ratio = $29.50 ÷ $17.01

= 1.73 times

6 0

3 years ago

Use the drop-down menus to indicate whether each statement describes a traditional use of computers

Mrac [35]

Answer:

to manage financial records

to create advertisements

to catalog tax records

to e-mail clients

to create invoices

Explanation:

5 0

3 years ago

Andrea, an enterprising individual, wants to open a store in her town. She wants her store to be of the same type as a popular c

uysha [10]

Answer:

D. Franchisee

Explanation:

A franchisee can be defined as an individual who is a small business owner who operates a franchise. A franchisee is given license by the franchisor to run a business under the franchisor's trade mark, trade name and method of operations. A franchise is a business in which the owners sell the rights to their business trade mark, trade name, logo and method of operations to a third party outlet or individuals owned separately by who we refer to as the franchisee. In this case, Andrea wants to become a franchisee by opening the same type of popular coffee chain in her town that is found in a nearby town.

6 0

3 years ago

joye owns a shoe store in a neighborhood with other shoe stores. Demand for the products he sells is probably

Serjik [45]

Answer:

Demand for products sold at a store in a neighborhood with other stores is probably elastic

Explanation:

A demand is considered as 'Elastic' if a change in price of the product would strongly affect the quantity of the demand.

Competitors who offer similar products than your organization tend to reduce the amount of demand that come to your store. Existence of competitors give the consumers the options to choose and move around in order to seek the best offers that they can.

As a result, the shoe stores in Joey's neighborhood will have to constantly adjust their price in order to make their products seems appealing compared to the rest of the competitors. This make the demand in Joye's store keep fluctuating depending on the performance of other competitors.

6 0

3 years ago

Question 3 Total expenditure equals price times elasticity? True or False