Answer:
D) $4,550
Explanation:
Contribution margin = Net Sales - Total Variable cost
Net sales                             $6,000
Les: Variable costs:
Cost of merchandise sold  $1,000
Operating expenses          <u> $450  </u>
Contribution Margin            $4,550
All other costs are fixed cost which are not used in contribution margin calculation.
So the correct answer is D) $4,550.
 
        
             
        
        
        
Answer:
C. Including restrictive covenants in the company's bond indenture (which is the contract between the company and its bondholders).  
Explanation:
One of the major actions that would most likely reduce potential conflicts between stockholders and bondholder is the Inclusion of restrictive covenants in the company's bond indenture (which is the contract between the company and its bondholders).  
 Restrictive covenants are Bond covenants that are designed to protect the interests of both parties by forbiding the issuer from undertaking certain activities that are detrimental to the holders of the bond.
Restrictive covenants manages the agency problem between stockholders and bondholder.
 
        
             
        
        
        
Answer:
C) the merchandise inventory balance reflects the ending inventory. 
Explanation:
When a company uses the periodic inventory system, inventory records are updated only at the end of each accounting period. The periodic inventory system records cost of goods sold (COGS) at the end of the accounting period after the inventory records have been updated. 
 
        
             
        
        
        
Answer:
Price elasticity of demand is greater for the Car
Explanation:
Price elasticity of Demand = (Q2 - Q1/Q1) ÷ (P2 - P1/P1)
For the car,
PED = (110 - 100/100) ÷ (10000-9900/10000)
 = 0.1 ÷ 0.01 
 = 10
PED = (110 - 100/100) ÷ (1000-900/1000)
 = 0.1 ÷ 0.1
 = 1
Since 10 > 1, hence the PED of the Car is greater than that of vacation homes.
 
        
             
        
        
        
Answer: c. 530,000 grams
Explanation:
Finished goods that should be produced in the year;
= Units to be sold + ending inventory - beginning inventory 
= 170,000 + 32,000 - 22,000
= 180,000 units of finished goods. 
Each unit of finished good requires 3 grams of raw material;
= 180,000 * 3
= 540,000 grams
Raw materials to be purchased;
= Raw materials needed + ending inventory - beginning inventory 
= 540,000 + 42,000 - 52,000
= 530,000 grams