Answer:
$8.25
Explanation:
The computation of basic earnings per common share is shown below:-
Dividend to be accrued on Preference shares = 11,000 × 100 × 5%
= $55,000
Earnings available to common share holders = $550,000 - $55,000
= $495,000
Basic Earnings per share = Earnings available to common share holders ÷ Shares of common stock
= $495,000 ÷ $60,000
= $8.25
-avoid mistakes/disasters (lack of teamwork, pricing, etc)
-setting objectives
-helps with development and growth
-create marketing strategy
Answer:
$1,777,777.78
Explanation:
The computation of the sales volume needs to be achieved is shown below:
Sales volume is
= Fixed cost + after tax income ÷ (contribution margin ratio)
= ($664,000 + $136,000) ÷ (0.45)
= $1,777,777.78
We ignored the income tax rate as there is no need in the computation part
By using the above formula, it can be determined in an easily manner
Answer:
Option (B) is correct.
Explanation:
If there is an increase in the income of the consumer then as a result there is a parallel shift in the budget line. This increase in income will increase the real purchasing power of the consumers and hence, this would increase the quantity of two goods consumed in an equal proportion.
Other factors remains the same, an increase in the income level of the consumer will increase the consumption of both the goods because the prices of both the goods are constant.
