Which of the following is an example of a divisional organization structure?

Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list

Pepsi [2]

The correct answer is B) Compute gross margin per sales point.

Caroline is conducting a share point analysis for Bloomingdale's. First, she estimates total industry sales by compiling a list of all department stores and their sales for the previous year. Next, she estimates Bloomingdale's market share within the industry. To find the value of one share point, Caroline must compute the gross margin per sales point.

Gross margin is part of the income statement that firms or industries need to elaborate every year. This metric indicates a detailed description of a company's revenues, expenses, and profit. When preparing a budget, gross margin defines the limits a company must take into account. That is why Caroline must pay close attention to the calculation and computing.

3 0

3 years ago

2) You purchase one MBI July 125 call contract (equaling 100 shares) for a premium of $5. You hold the option until the expirati

PtichkaEL [24]

Answer:

D) $500 loss

Explanation:

The computation of the realized value on the investment is shown below:

= Number of shares × premium

= 100 shares × $5

= $500 loss

Since the call is for 125 shares for $125 and the selling price per share is $123 due to which the contract is not implemented. So the premium amount would be recorded as a loss of $500

8 0

3 years ago

How do you calculate the variable cost?

NikAS [45]

Calculate total variable cost by multiplying the cost to make one unit of your product by the number of products you've developed. For example, if it costs $60 to make one unit of your product, and you've made 20 units, your total variable cost is $60 x 20, or $1,200.

Hope this helps have a great day :)

6 0

3 years ago

Identify which basic principle of accounting is best described in each item below.

adelina 88 [10]

Answer:

The Matching Principle

Explanation:

The Matching Principle of accounting holds that revenues should be matched with expenses. Hence the name.

This is to say, that revenues should only be recognized when the associated expenses with those revenues have been spent.

For example, in numeral a), we can see that Norfolk Southern Corporation recieved cash in advance, but it only recognized revenue once it had performed the services associated with that cash collection.

4 0

3 years ago

The trial balance of Rollins Inc. included the following accounts as of December 31, 2021:

Alinara [238K]

Answer:

Net income = $725,625

Earnings per share = $7.26 per share

Explanation:

The multiple-step income statement refers to an income statement that displays gross profit obtained as sales revenue minus cost of goods sold, and also shows an organization's operating revenues and operating expenses separately from its nonoperating revenues or gains and expenses or losses.

The multiple-step income statement can be prepared as follows:

Rollins Inc.

multiple-step income statement

For the Year Ended December 31, 2021

Details $ $

Sales Revenue 5,400,000

Cost of goods sold (3,950,000)

Gross profit 1,450,000

Operating expenses:

Selling expense (350,000)

General and admin expense (250,000)

Total operating expenses (600,000)

Operating income 850,000

Interest revenue (expense):

Interest revenue 37,500

Interest expense (20,000)

Total Interest revenue (expense) 17,500

Other compreh. income (loss):

Loss on sale of investments (10,000)

Loss on debt investments (125,000)

Gain on projected ben. obligation 235,000

Total other compreh. income (loss) 100,000

Income before tax 967,500

Income taxes (w.1) (241,875)

Net income  725,625 

Earnings per share (w.2) 7.26

Workings:

w.1: Income taxes = Income before tax * Effective tax rate = $967,500 * 25% = $241,875

w.2: Earnings per share = Net income / Number of shares of stock outstanding throughout the year = $725,625 / 100,000 = $7.26

7 0

3 years ago