This merger is an example of "vertical merger".
A vertical merger refers to a merger which is between two companies or organizations that deliver different services and administrations or parts along the esteem chain for some last item. Mergers between such organizations or companies happen with an end goal to decrease generation expenses and increment productivity for higher benefits.
To represent, assume company ABC produces shoes and company DEF produces leather. DEF has been ABC's calfskin provider for a long time, and they understand that by going into a merger together, they could cut expenses and increment benefits. They combine vertically in light of the fact that the leather delivered by ABC is utilized as a part of ABC's shoes.
Answer:
See below
Explanation:
Contribution margin = Sales value - Variable expenses
Given that;
Sales for Jones = $40,000
Less variable expenses
Cost of goods sold ($4,800)
Contribution margin = $40,000 - $18,800 = $21,200
Answer:
A. demand for labor; minimum wage
Explanation:
When an effective minimum wage is introduced, the number of hours of labor employed is determined by the <u>DEMAND FOR LABOR</u> and the <u>MINIMUM WAGE</u>
Answer:
I think its D.
Explanation:
2007 saw over 100 recalls due to really high levels of lead in nursery items, toys, jewelry, and art supplies.
Answer:
B. only the traditional format of the income statement.
Explanation:
There is only one format under US GAAP, that is the traditional format, the variable costing format or the contribution margin format are all concepts of cost accounting, and not of accounting.
As per US GAAP the books are prepared in traditional format income statement. No other format is followed for reporting and presenting the financial statements of the company.
Therefore, correct option is:
Option B