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EastWind [94]
3 years ago
9

Which of the following is something that is marketed?

Business
1 answer:
fenix001 [56]3 years ago
5 0
All of the above are marketed
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Do It! Review 1-3 Classify the following items as issuance of stock, dividends, revenues, or expenses. Then indicate whether eac
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Answer:

1. Dividends = Dividends, it decreases stockholder's equity.

2. Rent Revenue = Revenue, it increases stockholder's equity

3. Advertising Expense = Expense, it decreases stockholder's equity

4. Stockholder's pay cash into business = Issuance of stock, increases stockholder's equity.

Explanation:

Notes to above:

1. Dividends are paid from current year income or from retained earnings, as both current year earnings and retained earnings are clubbed into equity thus, with payment of dividend, equity is decreased.

2. Rent revenue is a part of income and income is part of equity as with increase in income there is increase in equity also.

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2. The sales volume decreases by 50 units.

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Less: Variable expenses (8,450units × $19) $160,550

Contribution margin $101,400

Less: Fixed expenses $55,200

Net operating income $46,200

3. The sales volume is 7,500 units.

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Less: Variable expenses (7,500 units × $19) $142,500

Contribution margin $90,000

Less: Fixed expenses $55,200

Net operating income $34,800

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