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2 years ago

What is the difference between a contribution approach income statement and a traditional approach income statement?

1 answer:

5 0

Contribution approach Income statement- In this Statement Company's Variable costs deducted from Sales to arrive at contribution margin. After that Fixed expenses are deducted from contribution margin for arriving at profit for the period.

Basically , this statement separated fixed and variable expenses of a period to arrive at profit of the company.

It separates all the costs between fixed and variable whether it is manufacturing costs or Selling or administrative costs.

Traditional Approach Income statement- It is non other than profit and loss account of an entity. it reflects whether a company generating profit or making loss during a period.

It separates the Manufacturing costs from Selling and administrative costs. Manufacturing costs deducted from sales to arrive at gross profit. after that selling and administrative costs deducted from gross profit to arrive at net profit.

To learn more about contribution approach income statement and traditional approach income statement visit:brainly.com/question/17311718

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Stephan owns a shirt factory. He sells each shirt for $50. Previously, he had 30 employees producing a total of 300 shirts daily

SOVA2 [1]

Answer:

marginal revenue product = $2,500 for the 10 additional workers

Explanation:

The marginal revenue product is the amount of revenue generated by adding a certain number of workers into the production process. The marginal revenue product (MRP) is calculated by multiplying marginal product times the selling price

the marginal product of the 10 additional workers = 50 shirts per day
price per shirt= $50

MRP = 50 shirts x $50 per shirt = $2,500

to determine the MRP per worker = $2,500 / 10 workers = $250

5 0

3 years ago

On January 1, a company issued and sold a $440,000, 6%, 10-year bond payable, and received proceeds of $434,000. Interest is pay

Harlamova29_29 [7]

Answer:

The carrying value of the bonds immediately after the first interest payment is $434,300.

Explanation:

Face value of the bond = $440,000

Proceeds from bond issue = $434,000

Discount on bond payable = Face value of the bond - Proceeds from bond issue = $440,000 - $434,000 = $6,000

Total number of seminual = Number of years of bond maturity * Number of semiannual in a year = 10 * 2 = 20

Discount amortizaton per semiannual = Discount on bond payable / Total number of seminual = $6,000 / 20 = $300

Carrying value after first interest payment = Proceeds from bond issue + Discount amortizaton per semiannual = $434,000 + $300 = $434,300

Therefore, the carrying value of the bonds immediately after the first interest payment is $434,300.

3 0

3 years ago

Although she hates the work, Jessica has spent most weekends and the last three summers as a shortorder cook; she has an associa

Andrew [12]

Although she hates the work, [ Jessica has spent most weekends and the last three summers as a shortorder cook; she has an associate's degree in paralegal studies; she loves to ride and spends every spare minute helping her uncle with his three horses. Now that she's planning to start a business, her best choice would probably be a Riding stable. ]

In short the answer is D. Riding stable

7 0

3 years ago

Daily demand for a product is 160 units, with a standard deviation of 35 units. The product is ordered on a pre-established (fix

egoroff_w [7]

Answer:

2686

Explanation:

Given that :

Daily demand (D) = 160

Standard deviation (s) = 35

Review period (T) = 5 days

Lead time (L) = 10 days

Number in stock (I) = 30 units

Service probability α = 99%

Quantity to order Q;

Q = D(T + L) + Z*s + √(T + L) - 1

Zscore p(Z < 0.99) = 2.326 = 2.33(Z probability calculator)

Q = 160(5 + 10) + 2.33 * 35 * √(10 + 5) - 30

Q = 160(15) + (2.33 * 35 * 3.8729833) - 30

Q = 2400 + 315.841788115 - 30

Q = 2685.841788115

Q = 2686

5 0

4 years ago

Indicate whether each of the following transactions represents an increase in net exports, a decrease in net exports, an increas

ratelena [41]

Answer: a. Decrease in Net Exports

b. Increase in Net Capital

c. Decrease in Net Capital.

d. Increase in Net Exports

Explanation:

a. A Decrease in Net Exports

Net Exports is Exports - Imports. In buying a Television from a foreign company, the American has imported the good. This will reduce Net Exports by the aforementioned formula.

b. An INCREASE in NET CAPITAL OUTFLOW

This is essentially Capital being invested in other countries. It increases when more is invested in other countries as opposed to less.

c. A DECREASE in NET CAPITAL OUTFLOW.

As previously stated, Net Capital Outflow increases when a country invests more in another country. Since we are looking at it from the perspective of the USA, Sony, which is not an American company, buying into such capital is considered a Decrease in Net Capital Outflow as money is coming into the US.

d. An INCREASE in NET EXPORTS

Here, a foreigner is buying goods in the USA. That translates to Export. And by the Net Export Equation, Net Exports will rise.

If you need any clarification do react or comment.

6 0

3 years ago