Answer:
Operating income will rise by $7,500
Explanation:
If the Fox, Inc. can complete the order and it wouldn´t affect them inthe regular sales, they would just have to calculate the price of making each pen, which is one dollar per pen, with absorption costs, and then withdraw that from the income they will make for the sale:
3,500 pens at 3 dollars=10,500
We withdraw the 3,500 from making them:
10,500-3,500= 7,000
So the income will increase by $7,000 is they take the order.
Answer:
1. Determine the effects of this transaction on
a. Exports - There will be no effect on the export of the USA;
b. Imports - The initial amount spent on the importation of the toys and the videogame plus $10,000.00 spent on the importation of PlayNation Perfect Video game console to increase the inventory will put the Japanese economy on a favourable BalanceBalance of Payment (BOP) because money came into the economy and left the USA economy simultaneously.
c. Net exports in the U.S. economy will be<em> low.</em>
Explanation:
a. Exports - There will be no effect on the export of the USA because the store did not export anything rather it imported the PlayNation Perfect video game console from a Japanese company and spent an additional $10,000.00 to increase his inventory. Simply put, money left the US economy without a complementary import to strike a balance in Balance of Payment.
b. Imports -<em> </em>The initial money spent in the importation of the consignment and $10,000.00 spent to increase his inventory will put the Japanese economy on a favourable Balance of Payment (BOP) because money came into the economy and left the US economy;
c. Net exports in the U.S. economy will be<em> low because there were importations of goods into the economy without corresponding export to have a favourable Balance of Payment in the International Trade. It is when the Exports in USA is greater that that of the import that you have a favourable Balance of Paymet and it translates to improve GDP.</em>
Answer and Explanation:
The computation is shown below:
Total fixed costs is
= depreciation + advertising + insurance
= 1224 + 153 + 1683
= $3060 per month
Now
Total variable cost per unit
= weed + direct labor + fuel
= 10 + 8 + 2
= $20/ per lawn
Now
Contribution margin ratio = (sales per unit - variable cost per unit) ÷ sales per unit
= ($50 - $20) ÷ 50
= 60%
Now
Breakeven sales is
= fixed costs ÷ contribution margin ratio
= $3,060 ÷ 60%
= $5100
And,
Breakeven sales units is
= breakeven sales ÷ sales per unit
= 5100 ÷ 50
= 102 lawns
Answer: C.More, less
Explanation:
When you have much to do with money and it resolves you to borrowing, the more the down payment, the less you have to borrow. Having more would make you not to borrow much for the situation.
Depreciation expense is added to net income in a statement of cash flows prepared using the indirect method
Depreciation expense is allocated portion of cost shown on the income statement that reduces the company's net income. It is considered as a non cash expense, hence it is added to the net income in a statement of cash flows.
Net income is used to measure cash flows from operating activities, hence depreciation expense must be added back to net income when using indirect method.
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