Answer:
Exclusion Percentage = 48.10%
Included in income = $4256
Explanation:
The exclusion percentage can be calculated using the following formula:
=> Exclusion Percentage = Investment in Total /(Payments made * Life Expectancy *Total months in a year)
=> Exclusion Percentage = $82,000 / ($683* 20.8 *12)
=> Exclusion Percentage = 0.4810 = 48.10% (Rounded off to two decimal places)
(Included in income):
The Included in income amount can be calculated using the following formula:
=> Included in Income = (Received amount - Return on Capital ) (Edited to accomodate changes)
& Return on Capital = ( Received amount * Exclusion percentage ) (Edited to accomodate changes)
=> ROC = $8200 * 0.481 = 3944.2 (Edited to accomodate changes)
=> Included in income = ( $8200 )- 3944.2 = 4255.80 => 4256 ( Rounded off to nearest dollar amount)
Answer:
Oligopoly.
Explanation:
The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is oligopoly.
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
<em>The characteristics of an oligopolistic market structure are;</em>
<em>1. Mutual interdependence between the firms. </em>
<em>2. Market control by many small firms.</em>
<em>3. Difficult entry to new firms. </em>
Answer:
Allocated MOH= $1,380
Explanation:
<u>First, we need to calculate the predetermined allocation rate per direct labor hour:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
6,900 = Estimated manufacturing overhead rate*10
Estimated manufacturing overhead rate= $690 per direct labor hour
<u>Now, we can allocate overhead for Job 2:</u>
Allocated MOH= 690*2
Allocated MOH= $1,380
Answer:
3.2 & 16%
Explanation:
Degree of operating leverage = Contribution margin / Pretax net income
Degree of operating leverage = $80,960 / $25,300
Degree of operating leverage = 3.2
Degree of operating leverage 3.2 means if sales (or contribution margin) increases by 1%, income increases by 3.2 %.
Thus, Expected % change in income = Increase in sales * degree of operating leverage
Expected % change in income = 5% * 3.2
Expected % change in income = 0.5 * 3.2
Expected % change in income = 0.16
Expected % change in income = 16%
