Answer:
C. The price of a hamburger was $3.80 rather than $5.50 in 2010, with other prices in the table remaining fixed.
Explanation:
The given table shows the inflation rates and price movement over the years. The hamburger had inflation effect and its price increased by almost $1. The price change will create burden on the consumer and they will have to pay for inflation differential.
Answer:Bad debt expenses will be $2000 on the income statement and Allowance for uncollectible Accounts will be ($3000) on the balance sheet.
Explanation:
The bad debt accounts and allowance for uncollectible accounts are stated in the income and balance sheet statement respectively yearly to monitor activities on collectible debts.
A firm based on his experience determined an estimated percentage of debts outstanding for the year that are likely to go bad. If the new estimate is greater than the previous year, the difference is debited to income statement and if the new estimate is less than the previous year estimate the difference is credited to the income statement.
In the above scenario the new year estimate is greater than previous year by $ 2000 and that lead to $2000 to be debited to income statement.
The balance is made to reflect the total of the new estimate to be deducted from collectible debt and this is why ($3000) goes to the balance sheet.
Answer:
Direct labor
Explanation:
To compute the manufacturing overhead, we considering the following:
= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary
The direct labor is a direct expense which is related to the product whereas the manufacturing overhead records only indirect cost which is not directly related to the product i.e it relates to the factory expenses
Answer:
45%
Explanation:
Given that,
Sales = $4,500,000
Invested assets = $2,000,000
Operating expenses = $3,600,000
Minimum rate of return = 7%
Operating profit of the company:
= Sales - Operating expenses
= $4,500,000 - $3,600,000
= $900,000
Therefore, the rate of return on investment is as follows:
= Net operating income ÷ Invested assets
= $900,000 ÷ $2,000,000
= 45%