The starting point in preparing a master budget is the preparation of the select one:

Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below:

Oksana_A [137]

Answer and Explanation:

a. The computation of the net operating income earned is shown below:

Sales $800,000

Less: Variable cost -$381,000

Contribution margin $419,000

Less: Fixed manufacturing expenses - $263,000

Less : Fixed selling and administrative expenses - $211,000

Net operating income or (Loss) -$55,000

b. The computation of the financial advantage (disadvantage) of dropping product D14E is shown below:

Sales $800,000

Less: Variable cost -$381,000

Contribution margin $419,000

Less: Fixed manufacturing expenses - $202,500

Less : Fixed selling and administrative expenses - $117,500

Financial disadvantage -$99,000

Since there is a financial disadvantage so the product should not be dropped

We simply applied the above equation

7 0

3 years ago

The market risk premium is defined as __________. the difference between the return on an index fund and the return on Treasury

Paha777 [63]

Answer:

The difference between the return on an index fund and the return on Treasury bills

Explanation:

The market risk premium explains critically the difference between an expected return on a given market portfolio and the risk-free rate.

It is also the additional return a given investor will receive (or is expected to gain) from holding a risky market portfolio instead of risk-free assets.

6 0

3 years ago

When the interest rate in an economy increases, it is likely the result of either: an increase in the government budget surplus

SIZIF [17.4K]

Answer: c). a decrease in the government's budget surplus or an increase in its budget deficit.

Explanation: Budget surplus refers to the excess of government revenue from taxes and other sources over its expenditure. While, budget deficit refers to the excess of government expenditures over its revenue.

BS= T>G

BD= G>T

A decrease in the government's budget surplus or an increase in its budget deficit leads to an increase in the interest rate in the economy. Thus the correct option is c.

5 0

3 years ago

Financial accounting and reporting standards in the United States are established primarily by the:

GREYUIT [131]

Answer:

Financial Accounting standards Board (FASB)

Explanation:

Financial Accounting Standards Board (FASB) is a private body that works as a non-profit organization that main purpose is established accounting principles in the united states. FASB work for the government, private and for a non-profit organization to prepare and present their financial statement.

FASB working with international accounting standard boards for maintaining and preparing standards worldwide

3 0

3 years ago

When the government runs a budget deficit, what must it eventually do in

scZoUnD [109]

Answer:

Explanation:

The government has two options, with regards to paying back its debts; taxation and open market operations. Through taxation, tax rates per unit may be increased, which subsequently raises enough money to be used to pay up the debt. As for open market operations, the government, through its treasury or exchequer may issue risk free treasury bonds and bills to members of the public at fixed coupon rates. Whatever funds raised from the bond and bill sale are eligible for repaying the debt.

3 0

3 years ago

Read 2 more answers