Answer:
Net operating income= 565,000
Explanation:
Giving the following information:
Krazy Kayaks sells its entry-level kayaks for $750 each. Its variable cost is $500 per kayak. Fixed costs are $25,000 per month for volumes up to 1,100 kayaks. Above 1,100 kayaks, monthly fixed costs are $60,000.
Sales= 2,500*750= 1,875,000
COGS= (500*2,500)= (1,250,000)
Gross profit= 625,000
Fixed costs= (60,000)
Net operating income= 565,000
A security suite for the software program
Answer:
d. $1050.
Explanation:
We multiply each account balance by the expected uncollectible amount and then addd them to get the expected total for doutful accounts
![\left[\begin{array}{cccc}Date&Amount&Expected&uncollectible\\$not due&10000&0.02&200\\$up to 30&5000&0.05&250\\$up to 60&3000&0.1&300\\$more than 61&800&0.5&400\\&&Total&1150\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7DDate%26Amount%26Expected%26uncollectible%5C%5C%24not%20due%2610000%260.02%26200%5C%5C%24up%20to%2030%265000%260.05%26250%5C%5C%24up%20to%2060%263000%260.1%26300%5C%5C%24more%20than%2061%26800%260.5%26400%5C%5C%26%26Total%261150%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Balance of the allowance account: 100
The expense will be the adjustment made on the allowance to get the expected balance of 1,150
1,150 - 100 = 1,050
we increase the allowance bu 1,050 to get our expected uncollectible fro maccounts receivable agaisnt the bad debt expense ofthe period.
Answer:
C) over time inflation will fall back down to the inflation target.
Explanation:
In the scenario, there is a positive aggregate demand shock which will lead to inflation because prices of goods will rise as aggregate demand increases with supply being unchanged
<u>A demand shock is a sudden event that increases or decreases demand for goods or services temporarily. A positive demand shock increases aggregate demand and a negative demand shock decreases aggregate demand. </u>
<u>Therefore there will be an initial inflation with the shock but since demand shocks are temporary and the central bank commits to an inflation rate target, then over time inflation will fall back down to the inflation target.</u>
Answer:
The average rate of return for this investment is 21%
Explanation:
Average rate of return : The average rate of return shows the ratio between average net income and average initial investment.
Mathematically,
Average rate of return = Average Net income ÷ Average Initial Investment
where Average Net income = Total years of net income ÷ Number of years
= ($100,000 + $60,000 + $30,000 + $10,000 + $10,000) ÷ 5
= $42,000
And, Average Initial Investment = Initial Investment ÷ 2
= $400,000 ÷ 2
= $200,000
Now, average rate of return = $42,000 ÷ $200,000
= 21%
Thus, the average rate of return for this investment is 21%
