Answer:
China Tea Company
Income statement for the year ended December 31, 2021:
$
Service revenue 380,000
Less Expenses :
Salaries expense 180,000
Advertising expense 77,000
Rent expense 15,000
Depreciation expense 33,000
Interest expense 3,000
Utilities expense 35,000 (343,000)
Net Income / (loss) 37,000
Explanation:
Net Income shows the Profit or Loss from Operating Activities during the Reporting Period.
The Items found in it comprise of Revenues/Income, Expenses and Profit/Loss.
Profit/ Loss = Sales - Expenses
Answer:
The main difference between profit maximization and wealth maximization is that the profit maximization is looking for short term advantages whereas the wealth maximization talks about the long term success of the enterprise and also discusses about trading ethically.
This can be illustrated by the example that the managers can sell a machinery for $16000 which they purchased for $15000 5 years ago. This means the manager has increased the wealth of the shareholders by considerable. But after sale the procurement manager said that it was our mistake to sell that machinery because new machinery will cost us $50000 and will take 3 months to receive that asset. So long term success (Wealth Maximization) is associated with long term plannings not with thinking short term (Profit Maximization).
Answer:
Exporting by means of:
- Local representative
- Online sales
Explanation:
It would be best that the company engages in exports for the time being because it dos not require much funds to be used and so expenses are less.
The company could find a local representative in the countries that it would like to sell to and use that representative as a middleman to sell their goods there.
The company could also cut out the middle man and directly sell to consumers on the internet through websites dedicated to the sale of their kind of goods.
The answer is 52500 for 25% from 42000 = 10500 so 42000+10500=52500
Answer:
d.$12.40
Explanation:
The computation of the per unit cost is shown below:
= Total cost ÷ Number of units produced
where,
Total cost = Direct material cost + Direct labor cost + Factory overhead cost
= $4,400 + $5,600 + $2,400
= $12,400
And, the units produced = 1,000 units
So per unit cost equal to
= $12,400 ÷ 1,000 units
= $12.40