Answer:
2014 2013 %CHANGE
SALE 1297000 1001000 29.6%
COGS 797655 600600 32.8%
Gross margin 499345 400400 24.7%
operating expenses 302000 198000 52.5%
Income before tax 197345 202400 -2.5%
taxes 61400 52600 16.7%
Net income 135945 149800 -9.2%
Explanation:
%change = (2014 - 2013)/2013
2014 and 2013 represent each line item in the income statement
Answer:
see below
Explanation:
Resources are the ( inputs) materials used in the production of goods meant for sale. The cost of inputs has a direct impact on the price of the finished goods(output). An increase in the cost of inputs increases the cost of production. An increase in production cost increases without a corresponding rise in the selling price means that the profits margin per unit will decline.
Suppliers are motivated to sell or deliver more quantities in the market by profit prospects. An increase in the costs of inputs decreases profit margins. Reduced profits margin result in suppliers supplying reduced quantities in the markets.
Answer:
c. Status Update and Announcements
Explanation:
By keeping customers up-to-date with the recent development and also making announcements in your business the customer will be carried along properly in other to create a continuous and long lasting customer relationship.
For example: Social media or mailing notifications - updates are being passed across through selected means to customers before logging in into the platforms which has lead to the increase and continuous use of both platforms effectively.
Answer:
Lahdekorpi OY, a Finnish corporation and Three-O Company, a subsidiary incorporated in the United States
Transfer Pricing:
a) The best transfer pricing method in this case is the cost plus method. This gives the transfer price as Cost + 50%.
b) The appropriate transfer price should be $3 ($2 x 1.5).
Explanation:
Transfer pricing arises when controlled entities set prices for exchange of goods and services. When Lahdekorpi OY, a Finnish corporation, sells wooden puzzles to Three-O Company, given their relationship, transfer pricing has arisen. It is the assignment of cost for goods and services exchanged between related parties, like a parent and a subsidiary.
There are many Transfer Pricing methods which entities and the taxing authorities can use to determine the best transfer price. According to the Organisation for Economic Co-operation and Development (OECD) Multinational Entities and tax authorities can use any of these five main transfer pricing methods:
a) Comparable uncontrolled price (CUP) method. The CUP method is grouped by the OECD as a traditional transaction method (as opposed to a transactional profit method)
b) Resale price method
c) Cost plus method
d) Transactional net margin method (TNMM)
e) Transactional profit split method.
Answer:
indirect loss, cannot be
Explanation:
Indirect losses refers to a type of loss that incurred outside of circumstances that usually occur in normal operation. (such as loss because the government created a certain type of law or loss because people are conducting strikes on other areas of our business)
Insurance companies can't cover Indirect losses because these costs tend to be really unpredictable and extremely hard to be measured . They will specify that they wouldn't cover these types of loss during the initial cotnract.
