Answer:
d. laws that support enforceable contracts between firms.
Explanation:
Chao sources his bicycle bparts from Upright Strides Inc. such as wheels and tires. A threat to his business will be if he does not get his supply from Upright Strides Inc. Long drawn out disputes will cause loss of income for Chao.
So if the government implements laws that supports enforceable contracts between firms, in the case of dispute or non supply of goods Chao can enforce their contract with Upright Strides compelling them to supply goods.
Answer:
4,000
Explanation:
Ron has a life insurance policy with a face value of 100,000
The consumer price index has gone up by 4%
Therefore the increase in the policy face value can be calculated as follows
= 100,000 × 4/100
= 100,000 × 0.04
= 4,000
Answer:
c. $155.
Explanation:
Kimzey Medical Supply's merchandise inventory:
Surgical equip. Surgical supplies Rehab equip. Rehab supplies
Selling price $335 $195 $415 $240
Cost $245 $165 $325 $237
Replacement $315 <u>$155</u> $310 $233
cost
Net RV $275 $175 $375 $200
If we apply the lower of cost or market rule for determining the value of surgical equipment, its value would be: $155 because the replacement cost (or market price) is lower than the historical cost or the net realizable value.
When we use the lower of cost or market rule, we should value our inventory at the lowest value between original purchase cost, replacement (or market) price or net realizable value.
Answer:
$29,850
Explanation:
The computation of the increase in net operating income is shown below:
= Increase in sales - increase in variable expenses - advertising cost
where,
Increase in sales = $89,000
Increase in variable expenses is
= $89,000 × 35%
= $31,150
And, the advertising cost is $28,000
So, the increase in operating income is
= $89,000 - $31,150 - $28,000
= $29,850
Answer:
Increase in net operating is $9,800
Explanation:
<u>Computation table</u>
Increase in sales $60,000
<u>Less:Variable expense (42%) $25,200</u>
<u>Increase in contribution $34,800</u>
<u>Less:Cost of advertising $ 25,000 </u>
<u>Increase in net operating $9,800</u>
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