Answer:
<u>Income Statement for the Current Year under Variable Costing</u>
Sales (825 × $1,075) $886,875
Less Cost of Sales
Opening Stock $0
Add Cost of Goods Manufactured ( 1075 × $400) $430,000
Less Closing Inventory (250 × $400) ($100,000) ($330,000)
Contribution $556,875
Less Expenses :
Fixed Manufacturing Overheads ($107,500)
Selling and administrative expense : Variable ($75,000)
Selling and administrative expense : Fixed ($135,000)
Net Income / (Loss) $239,375
Explanation:
Under variable costing, only variable costs of production are included in cost of goods sold. Both the Non - Production and Fixed Production Costs are treated as Period Cost Expensed during the year.
Answer:
D. product modification.
Explanation:
This is an example of <u>Product Modification</u> <u>which refers to the improvement of the existing products by making necessary changes </u>in terms of features, quality, etc,.The purpose of the product modification is to maintain existing demand, attract new users and to face the competitors effectively to increase the profits of the enterprise also as here Lindsay's company plans to release a new version of its signature television set having advanced features, including better sound quality and high definition to maximize its profits and defeat the competitors.
Answer:
$ 39,165.00
Explanation:
the amount expected from customer in one year is the face value of the note receivable plus interest i.e $40,000*105%=$42,000
The interest on discounting is :
$42,000*9%*9/12=$2,835
The amount of cash that Ireland would receive from the Cloverdale Bank is the amount that Cloverdale would on maturity of the note receivable i.e $42,000, less the discount on the note of $2,385
cash received=$42,000-$2,835=$ 39,165.00
Cloverdale would pay $ 39,165.00 on September 2021 to Ireland Corporation
A because your don’t want to call anyone that is not available at that time
Answer:
Advertising.
Explanation:
Advertising increases costs of product. Customers have to pay high price for the products heavily advertised. Companies do not forgo their profits.
