Explanation:
1. a. Contribution format income statement for the game last year and compute the degree of operating leverage
Magic Realm, Inc.
Contribution Income Statement
Total Per Unit
Sales $300,000 $20
Variable 90,000 6
Contribution margin 210,000 $14
Fixed expense 182,000
Net operating income $28,000
1.b. Compute the degree of operating leverage
The degree of operating leverage is:
Degree of operating leverage = Contribution margin/Net operating income
= $210,000/$28,000
= 7.5
2. a. Sales of 18,000 games represent a 20% increase over last year's sales. Because the degree of operating leverage is 7.5, net operating income should increase by 7.5 times as much, or by 150% (7.5 × 20%).
= 150%
2.b. The expected total dollar amount of net operating income for next year would be:
Last year's net operating income $28,000
Expected increase in net operating income
next year (150% × $28,000) 42,000
Total expected net operating income $70,000
It will help organize the flow of ideas
Answer:
$898.54
Explanation:
The Price of the Bonds is equal to the Present Value or Fair Value of the Bonds.
Using the Financial Calculator, Input elements will be as follows :
N = 15
pmt = $1,000 × 5.7% = $57
YTM / i = 6.8%
Fv = $1,000
Pv = ?
Pv = $898.54
The Coupon rate is lower than the market rate thus the Bonds will fetch a lower price.
The answer for this question is: Stabilize the reaction
Chemicals with highly energetic reaction will have more risk to create high-energy force if we somehow fail to contain it safely.
When you need to evacuate, this type of reaction could create an explosion, so it's really advised to stabilize the reaction first.
Answer:
Fixed and Variable cost:
Fixed cost are the costs which cannot be changed with change in the level of goods and services sold or produced.
Variable cost are the costs which changes with change in the level of output produced and sold.
Product and Period cost:
Product costs are the costs which are incurred for making the product such as direct material, factory overhead and direct labor, etc.
Period costs refers to the cost which are incurred for a certain period of time. It is normally associated with the time period than with any type of transactional event.
Therefore, the classification of items is as follows:
(a) Variable cost - Product cost
(b) Variable cost - Product cost
(c) Fixed cost - Period cost
(d) Fixed cost - Period cost
(e) Fixed cost - Period cost
(f) Fixed cost - Period cost
(g) Variable cost - Product cost
(h) Fixed cost - Period cost
(i) Fixed cost - Period cost
