Answer:
$2.3 per unit
Explanation:
Calculation for company's unit contribution margin
First step is to calculate the Contribution margin using this formula
Contribution margin = Sales revenue - Variable manufacturing expenses - Variable selling and administrative expenses
Let plug in the formula
Contribution margin = $1,010,500 - $416,000 - $54,000
Contribution margin = $540,500
Now let calculate the Contribution margin per unit using this formula
Contribution margin per unit = Contribution margin / Cement tons
Contribution margin per unit = $540,500 / 235,000
Contribution margin per unit =$2.3 per unit.
Therefore company's unit contribution margin is $2.3 per unit
True, the employer and employee will have to contribute to F.I.C.A and the Medicare program.
Answer:
1. GAAP is the term used to indicate the whole body of FASB authoritative literature. <u>TRUE</u>.
The Financial Accounting Standards Board are the authors of the GAAP and as such GAAP is used to indicate the whole body of their literature.
2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. <u>FALSE. </u>
To claim compliance with GAAP, all standards and interpretations including Disclosure requirements should be followed.
3. The primary governmental body that has influence over the FASB is the SEC. <u>TRUE.</u>
The Securities and Exchange Commission (SEC) is the Government body that is meant to oversee the application of Accounting standards and as such, they have influence over the FASB.
4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard.<u> FALSE. </u>
Even though they have a Government mandate, the FASB must follow due process when establishing principles so that people might be able to contribute to or criticize the guidelines should they please.
Answer:
ROA = 0.12
so correct option is d
Explanation:
Given data:
total revenue = $5,000,000
Expenses = $3,500,000
Total assets = $12,500,000
Rate on assets (ROA) is calculated as
Net income = total revenue - expenses
Net income = $5,000,000 - 3,500,000
So,
ROA = 0.12
so correct option is d
