A company tries to serve the segments whose needs match their <span>abilities to deliver/delight.
When a company decided to provide its service only to a specific market, the company will get a stronger footing and marker positioning in that market, which will help the company in obtaining a lot of loyal customer for its products.</span>
The difference in operating income between processing the cat bowls further versus selling them off at the split-off point is -$1,920.
<h3>What is operating income?</h3>
Operating income is the adjusted revenue of a business after all operating costs and depreciation have been taken into account. The charges incurred to maintain the operation of the business are known as operating expenses.
Calculating the operational income difference:
After additional processing, sales income (1000*14) 14000
At the split-off point, sales revenue (1000 x 11) 11000
3000 in additional revenue
Cost Incremental -4920
Increased revenue (loss) -1920
Operating income (loss) difference = -1920
The ability of your company to make money from its operational activities is demonstrated by operating income. The operating income figure is frequently used by business owners to assess the operational success of their enterprise. Potential creditors and investors might be interested in your company's operating income.
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Answer:
$5,750
Explanation:
The computation of the balance in the allowance for doubtful accounts after bad debt expense is shown below:
= Account receivable × estimated percentage - credit balance of Allowance for doubtful accounts
= $295,000 × 0.03 - $3,100
= $8,850 - $3,100
= $5,750
By deducting the credit balance from the estimated amount we can find out the balance in the allowance for doubtful accounts
Answer:
(d) Trade credit
Explanation:
Trade credit is a basic instrument for financing development. Exchange credit is the credit stretched out to you by providers who let you purchase now and pay later.
Trade credit is tied in with winning new clients, expanding deals and holding client loyalty.
It's a simple method to ease income, which can help improve an independent company's productivity.
Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
Investing in business = $40,000 in exchange of common stock
This shows that, when investing in business cash is being debited and as cash is being used to buy common stock so, Common stock is being credited in journal entry.
So, the journal entry that Innovation consulting will make are as follows::
Journal Entries
Particulars Debit Credit
Cash $40,000.00
To Common stock $40,000.00
Hence, this shows the correct answer is option (B).
