A. Define the Problem first before take action.
Answer:
Blue Company
Consolidation of Parent & Subsidiary Companies :
1. c. $86,000
2. b. $47,000
3. d. $39,000
Explanation:
In preparing a consolidated income statement, Blue Company with controlling interest of 60% will eliminate intercompany transactions, sales, purchases, inventory, and profits. This is because such transactions are assumed to be within the same consolidated entity.
Only such transactions involving outsiders are taken into consideration for the purpose of determining profits and arriving at the financial position of the consolidated group.
Answer:
A.
Explanation:
The Contribution Margin Ratio is the ratio of contribution margin to sales revenue.
Contribution Margin Ratio = contribution margin / sales revenue
Contribution Margin = sales price - variable cost
If the sale price is increasing, and the variable cost remains the same, the contribution margin is going to increase.
Break even point shows the amount of sales volume where the total cost is equal to the company´s full income. The point where total costs are equal total revenue is known as the break even point.
If sales increase, and the costs remains the same, the break even point is going to decrease.
<span>First multiply $2,700 times four quarters times four years to get a total of $43,200 needed. Then, work backwards by quarter to subtract the interest for 17 quarters: {$43,200 -($43,200 times 0.0067)} repeated 17 times. The final answer is $38,279.52 needed to invest right now.</span>
Answer:C. horizontal merger
Explanation: Horizontal merger is a type of merging of business,it consists of mergers between firms producing similar products and services,it is aimed at increasing the market share and value of the firm buying the other firm. This type of merger helps to make the firm making the purchase have a strong competitive advantage to enable to effectively compete with other firms in the market.