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3 years ago

Garrett Company provided the following information:

Business

1 answer:

Shalnov [3]3 years ago

8 0

Answer:

Correct option is C

<u>Overall operating income will decrease by $25,000.</u>

Explanation:

Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3

Sum of sales ratio = 2+3 = 5

Common fixed cost:

Product 1 = 2/5×46,000 = $18,400

Product 2 = 3/5×46,000 = $27,600

Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000

Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)

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2 years ago

Jordan enterprises is considering a capital expenditure that requires an initial investment of $42,000 and returns after-tax cas

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Probabaly (A) It seems the most reasonable.

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3 years ago

Under which type of policy does the government reduce its expenditures and increase tax rates? A. contractionary monetary policy

zloy xaker [14]

Answer:

B. contractionary fiscal policy

Explanation:

The government influences economic direction through fiscal policy measures of increasing or decreasing its expenditure and taxation. Therefore, fiscal policies involve the government's actions of adjusting its spending and taxation to achieve desired economic objectives.

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3 years ago

Kim received a one-third profits and capital interest in Bright Line, LLC, in exchange for legal services she provided. In addit

timurjin [86]

Answer:

f. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.

Explanation:

Note: Guaranteed payments have no effect on Kim's outside basis.

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1/3rd of $15,000 = $5,000. That is, $5,000 loss must be allocated to Kim on Schedule K-1. So, option f is the correct answer.

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3 years ago

To encourage potential buyers to take its new Model 3 sedan for a test drive, BMW posts a video on its website of the Model 3 sp

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Answer:

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Explanation:

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3 years ago