True because they need more staff in order to run their corporation and will be able to afford them.
Answer:
1a.
Magic Realm, Inc.,
Contribution format income statement
Per Unit Amount
Sales 62 2,207,200
Variable expenses 42 (1,495,200)
Contribution margin 20 712,000
Fixed expenses (623,000)
Net operating profit 89,000
1b.
Degree of operating leverage: 4
2. The expected percentage increase in net operating income for next year: 184%
Explanation:
1a. Please refer to the answer part
1b. Degree of operating leverage = Contribution margin / net operating profit = 712,000/89,000 = 8.
2.
Expected percentage increase in net operating income for next year = Expected percentage increase in sales next year x operating leverage = 23% x 8 = 184%
Answer:
This is because in a free market, the prices of goods and services are determined by market forces, and the price mechanism will always keep the market at equilibrium.
Explanation:
The free market is a market without government intervention, equilibrium price and quantity are determined by the interaction of the market forces, also called price mechanism , which Adams Smith referred to as the invisible hands in the market.
The free market cannot operate outside the equilibrium because, the market forces will always keep the market towards equilibrium. Even if equilibrium is distorted, as a result of any shock, the market forces will bring the market towards equilibrium all things being equal, except there is market failure.
a free market is a market in which prices of goods and services are set by demand and supply and are allowed to reach their point of equilibrium without government intervention
Answer:
$6,400
Explanation:
Re-write the Question for Easier Understanding
Purchasing Maintenance Fabrication Assembly
$32,000 $18,0000 $96,000 $62,0000
(No of Purchase Orders) 16 4
(Sq Foot of Space) 3,300 2,700
Find:
Amount of Purchasing Department Expense to be allocated to Assembly.
- The Question clearly states that Purchasing Department's expenses are allocaated based on the Operating Department's Purchase Order
- Since total Purchase Order is 20 and Assembly's purchase order is 4
- Assembly's allocation of Purchasing Expense= Assembly's Purchase Order/ Total Purchase Order × Purchase Department Expense
=Total Purchase Order= Fabrication (16) + Assembly (4)= 20
=Purchase Order for Assemby= 4
=Purchasing Department Expense= $32,000
- =(4/20)× $32,000
- =0.2 × $32,000
- = $6,400
Answer:
Explanation:
the awners is b because it shows understaing of what people do
