If I were a policy maker in Country LT, I would create a regulatory policy that allowed the grain producer to make as much in profit as possible, but still protect consumer needs. The company would be required to create various smaller companies, each selling different types and quality of grain for varying prices. This would preserve the ideals of free enterprise, encourage competition within the market, and help to keep food costs down for consumers.
Answer and Explanation:
The preparation of the contribution margin income statement for the year is presented below:
Sales (45,000 units × $16 per unit) $720,000
Less: variable cost (45,000 units × $180,000 ÷ 30,000 units) -$270,000
Contribution margin $450,000
Less: fixed cost -$300,000
Net operating income $150,000
Answer:
$331,500
Explanation:
The computation of the ending balance of the pension benefit obligation is shown below:
= Opening balance of PBO + service cost + interest cost - pension benefits
= $265,000 + $80,000 + $26,500 - $40,000
= $331,500
The computation of the interest cost is shown below:
= Opening balance of PBO × discount rate
= $265,000 × 10%
= $26,500
The increased value of the plan assets would be ignored.
Answer:
Goodwill
Explanation:
Goodwill is an intangible asset, reported on the balance sheet asset side. It is used yearly for the impairment tests.
When the company purchase another company and its purchase price is more than the fair value of the net asset so the excess amount would be called as a goodwill
The fair value of the net asset is come from subtracting the
= Company assets - company liabilities
