Answer:
Contribution margin income statement for the year ended December 31, 2019
Sales (10,000×$175) 1,750,000
Less Variable Costs (10,000×$116) (1,160,000)
Contribution 590,000
Less Fixed Costs (354,000)
Net Income/(loss) 236,000
Explanation:
Variable Costing Income = Contribution - Fixed Costs
Answer:
When the new processes are developed for manufacturing it results in interest rate fluctuations. However, operational costs would become uncertain which would further affect the total production costs. Thus the value of an investment would be impacted. Automobile demand from the customers will also get affected. thus, fall in interest rate will have a significant and positive affect on the sale of automobiles as well as revenue.
The best way to generate word of mouth advertising is to start first with family and friends. In order for you to spread, you have to begin with the people who are comfortable with you. From there, you can let them spread the word of your product or service and then get referals so more people will know about what you are doing. This is the essence and concept of networking or referal selling. You start of with the people you know and then branch out later on.
Answer:
Rock Inc.
Gross profit ratio:
= 0.70
Explanation:
a) Data and Calculations:
Sales $473,864
Cost of Goods Sold 142,263
Gross profit $331,601
Gross profit ratio = Gross profit/Sales
= $331,601/$473,864
= 0.69978
= 0.70
b) Rock's gross profit is the difference between the Sales Revenue and the Cost of Goods Sold. It is the first profit point on the Income Statement. It measures the company's ability to convert sales revenue into profit after accounting for the cost of goods sold. This profit will cover the expenses incurred in running the business for the particular period.
