Youns Inc. reported the following results from last year’s operations: Sales $ 10,500,000 Variable expenses 6,610,000 Contributi
on margin 3,890,000 Fixed expenses 3,260,000 Net operating income $ 630,000 The company’s average operating assets were $5,000,000. At the beginning of this year, the company has a $1,400,000 investment opportunity that involves sales of $2,800,000, fixed expenses of $616,000, and a contribution margin ratio of 30% of sales. If the company pursues the investment opportunity and otherwise performs the same as last year, the combined turnover for the entire company will be closest to:
This question is based on the documentary film, ''The End of the Line'' which was done on the effects of fishing worldwide. In 2001, records showed that local stocks of fish were down around the world yet worldwide figures were increasing at a record rate.
The United Nations hired someone to investigate this and what he found was that Communist China was inflating the amount of fish they were harvesting so that they could look more efficient.
Spiff is actually a form of slang to refer to someone who receives an incentive for selling an item to customers on behalf of a vendor. This motivates the seller to push the vendor's items (sell them) onto its (seller's) customers. The incentive usually comes in the form of a bonus and is paid out immediately.
In this question the gourmet mustard manufacturer is the vendor, and Beverly is the seller. Beverly receives $1 for every jar of mustard she sells, which is the bonus. This motivates her to keep selling these jars on behalf of the manufacturer (vendor). This payment is immediate, as she receives it everytime she sells a jar of mustard.