Answer:
$0
Explanation:
The net income is the difference between the sales and total cost which comprises of the variable cost and fixed cost. The sales and variable cost are dependent on the number of units sold.
Let
u = number of units
s = selling price per unit
v = variable cost per unit
F = Fixed cost
I = Net income
I = su - F - vu
but vu = 0.3su
Hence
I = su - 0.3su - F = 0.7su - F
Given that the proposal will increase sales by $12,000,
New sales = su + 12000 ( in $)
and total fixed costs by $8,400
New fixed cost = F + 8400
New variable cost = 0.3( su + 12000) = 0.3su + 3600
New net income = su + 12000 - 0.3su - 3600 - F - 8400
= 0.7su - F
New net income is same as the old net income hence no increase.
Having money with which to buy goods and services is called purchasing power
Answer:
D. Sole proprietorship.
Explanation:
We know it's definitely is a sole proprietorship because of 'unlimited personal liability' which is a key characteristic.
Selma's business is not a joint venture because she is the only person who invested and runs the business whereas a joint venture is created by two or more entities or 'shared ownership'
Nor is it a corporation for this is an 'organization' owned and manned by many people but is regarded as a single entity. Neither is her business an s corporation because that just the same as a corporation but just with different tax regulations.
Answer:
The correct option which represents the ultimate goal of capital budgeting is D) .
Explanation:
Capital budgeting is a kind of planning process which an organization undertakes to see if the investments or projects ( usually long term ) they are considering to invest in are worth funding . This process actually begins with the compiling a list of potential future projects. The ultimate goal of this process is to estimate what would be the effect on organizations cash flow , if a project is accepted or rejected.
