Answer: 1. Special order price, direct materials, direct labor, and variable overhead.
2. Increases by $10,000,000
Explanation:
1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)
These include special order price, direct materials, direct labor, and variable overhead.
2. By how much will operating income increase or decrease if the order is accepted?
This will be:
= Units × (special order price-variable costs)
= 5000 × ($18000 - $10000 - $2000 - $4000)
= 5000 × $2000
=$10,000,000
Therefore, it increases by $10,000,000
Answer: $74100
Explanation:
Based on the information given, the amount of cash expected to be collected in October will be calculated thus:
October, credit sales will be:
= 60% x $247000
= $148200
Since the amount that'll be collected in October will be 50% of the credit sales. This will be:
= 50% × $148200
= $74100
Answer:
The characteristics of each business types are given below:
Explanation:
<u>Sole Proprietorship</u> is the type of business in which the liability is limitless. Due to this issue, the owner is solely responsible to pay off the debts of company from his personal owned assets if the business goes bankrupt.
<u>Partnership</u> is just like sole proprietorship but here the partners are the only responsible persons to payoff the debt of the company because the liability is limitless. The burden of the company debts is equally shared among the partners.
<u>Limited Partnership</u> is less risky because the liability is limited and only the amount invested in the business is subjected to the payment of borrowings from the lenders. The limited partner is responsible for his actions which means if his misdeed resulted in fine then it would be paid from his share first and then the other partners are equally liable for compensation if their is still any amount left. The resources of all the partners help to grow the business and the best resource here is the partner's knowledge in the core operation of the business.
In the case of <u>Joint Venture</u>, two or more than two limited liability companies jointly invest in a single project by pooling their resources in it to gain maximum benefit out of the business. So as the limited liability companies are the partners in the joint venture, the liability is limited and the burden of the payment of the liability falls on the company partners. So the investor is not subjected to pay the debts of the company because the limited liability company is a separate entity and is solely liable to pay for its debts.
<span>First and foremost, it should be understood that Okun's Law is an empirical observation. The law is founded in a perceived relationship between gdp and unemployment. In this sense, Okun's Law is an approximation and not rightly a Law derived from theory.
There is some debate as to how much of a decrease in gdp actually occurs from an increase in unemployment, but two leading figures have offered estimations. Martin Prachowny gives the ratio 3:1, such that for every 1% increase in unemployment, a country's gdp drops by 3%. Ben Bernake more recently has offered a revised estimation, placing it closer to 2:1.
Therefore, to find the inverse, a country's GDP would have to grow by 2-3% in order to reduce unemployment by 1%.</span>
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