Answer:
absorption costing net income is equal to variable costing net income.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Additionally, negotiated transfer prices can be defined as the final price reached between the buyer (consumer) of finished goods and services and the trader (seller) of such goods and services.
When the number of units produced equals the number of units sold, absorption costing net income is equal to variable costing net income as all the fixed overhead are entered into the income statement and thus, there wouldn't be any change in inventory.
Answer:
The contribution margin per unit is $5.33
Explanation:
Contribution margin per unit = Contribution margin/Number of units sold
= $80000/15000
= $5.3333
= $5.33
Therefore, The contribution margin per unit is $5.33
Answer:
The variable and fixed cost elements of the annual cost of the truck operation is 0.073 and $9,720 respectively.
Explanation:
The computation of the fixed cost and the variable cost per hour by using high low method is shown below:
Variable cost per hour = (High operating cost - low operating cost) ÷ (High kilometers driven - low kilometers driven)
= (135,000 km × 14.5% - 90,000 km × 18.1 %) ÷ (135,000 km - 90,000 km)
= ($19,575 - $16,290) ÷ 45,000 km
= $3,285 ÷ 45,000 km
= 0.073
Now the fixed cost equal to
= High operating cost - (High service hours × Variable cost per hour)
= $19,575 - (135,000 km × 0.073)
= $19,575 - $9,855
= $9,720
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2.) D. Pollution
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Answer:
Randall
The amount of SE tax he must pay is:
$22,540.60
Explanation:
a) Data and Calculations:
Net profit income for 2019 = $209,000
Self-employment tax:
First $132,900 * 15.3% = $20,333.70
Excess of $76,100 ($209 - 132,900) * 2.9% = $2,206.90
Total SE tax = $22,540.60
b) The IRS states that Randall's self-employment (SE) tax 2019 rate is 15.3 percent on the first $132,900 of his net profit income plus 2.9 percent on the net income in excess of $76,100 ($209 - 132,900). It has been ascertained that being self-employed can significantly lower the tax bill. The self-employed can claim specific benefits, allowances, and reliefs if they are business expenses. These business expenses may include various office costs, advertising and marketing, and travel costs.