Answer:
Overall operating profit will decrease by $25,000
Price is $32.5
Explanation:
A product should be shut down if doing so would make the savings in fixed costs associated with the product to exceed the lost contribution. Other wise , the product should remain.
In a shut down decision , the following relevant cash flows should be considered:
1. Lost contribution from the product to be shut down
2. Savings in fixed directly attributable to the product under consideration.
$
Lost contribution from products 2
(15-10)× 20,000 (100,000)
Savings in direct fixed cos <u> 75,000</u>
Net loss from the drop of product 2 <u> (25,000)</u>
Overall operating profit will decrease by $25,000
Mark up is the proportion of cost as profit
Price = cost + (mark-up %× cost
Price = 25 + (30%× 25) = 32.5
Price is $32.5
Answer:
10.67%
Explanation:
Gecko Company
Gecko = Expected Earnings growth rate = 8% annually
As there are no Capital gains tax, thus after Tax returns = Pretax returns
= 8%
Expected Dividend yield of Gordon = 5%
After tax returns = 5(1-.25)
=5(0.75)
= 3.75%
Assuming the pay out ratio = 100%
Gordon’s required pretax return = 8/ (1-.25)
=8/0.75
= 10.67%
At pretax return of 10.67% on Gordon the after tax returns on both the stocks are equal.
Answer:
(C) Debit Office supplies, $500; credit Accounts payable, $500
Explanation:
Businesses maintain the office supplies inventory of supplies and record the supplies purchased into this account and expense it afterward with the usage of inventory. In this question offices supplies purchased will be debited to office supplies account. As it is purchased on account so it will be credited to account payable account to make a liability against the transaction.
Answer:A proper office layout is the key to a high performance office. This means both good performance from your employees but also your business. Companies that have a great culture are highly sought after by prospective employees and can provide a competitive advantage in both hiring and retaining staff.
Explanation:
This would be a general partnership because both parties are responsible equally.
