Answer:
1. SEA DOWN
INCOME STATEMENT
conventional Variable
sales 10535000 10535000
cost of sales -7310000 - 4730000
commission - 2365000
contribution 3440000
gross profit 3225000
commission -2365000
fixed costs - 2760000
operating costs -245000 -245000
net income 615000 435000
2. Absorption method has the higher operating income, because manufacturing costs are charged to the cost of units and are usually less costly per unit ( the more units produced the lesser fixed costs become) than in total and in Variable method fixed costs are taken as a total.
3. conventional Variable
sales 11270000 11270000
cost of sales -7820000 -5060000
commission -2530000
contribution 3680000
gross profit 3450000
commission -2530000
fixed costs - 2760000
marketing cost -150000 -150000
operating costs -245000 -245000
net income 525000 525000
If the company is using Absorption method as basis for decision then it should not take the promotion as it yields to a decrease in net income. If the company uses Variable method as basis then it should take the promotion as it leads to an increase in profits.
Overall I think the company should take the promotion because it has an increased contribution to fixed costs and the two methods yield the same net income and that is a guarantee.
Explanation:
units
opening 0
produced 230000
closing - 15000
sold 215000
unit cost
Arbsoption Variable
VC 22 22
FIXED 12
UNIT COST 34 22
Answer:
A. upper-echelons theory
Explanation:
Upper echelons theory postulates that too executives of a company view situations in a highly personalised way that is as a result of their experiences, values, and personalities.
The CEO of Mabel emphasized making affordable, low-maintenance vehicles that could be bought by low-income households.
This decision was as a result of his childhood experience where his parents had difficulty providing money to support the family.
He empathized with low income households, and wanted to provide goods that will help them
Simplify each term.
2
a
x
+
2
a
y
−
3
b
x
+
3
b
y
Answer:
$80,700
Explanation:
A partnership begins its first year with the following capital balances:
- Alfred, Capital $50,000
- Bernard, Capital $60,000
- Collins, Capital $70,000
the partnership's net profits should be allocated the following way (drawings made by the partners should decrease their basis, but since the company made a profit they can be included in this distribution)
net income $60,000
partners' drawings plus salaries:
- Alfred ⇒ $5,000
- Bernard ⇒ $18,000 + $5,000 = $23,000
- Collins ⇒ $5,000
interests owed to partners:
- Alfred ⇒ $50,000 x 5% = $2,500
- Bernard ⇒ $60,000 x 5% = $3,000
- Collins ⇒ $70,000 x 5% = $3,500
the remaining $18,000 should be distributed:
- Alfred ⇒ $18,000 x 30% = $5,400
- Bernard ⇒ $18,000 + 30% = $5,400
- Collins ⇒ $18,000 x 40% = $7,200
Collins's basis should increase by $3,500 + $7,200 = $10,700, ending balance = $70,000 + $10,700 = $80,700
Answer:
The correct answer is customization.
Explanation:
Personalization refers to the fact that the products produced are able to be modified according to what the client requires, satisfying their needs.
Delivers outstanding products with superior characteristics.