Answer:
Net income= $98,200
Explanation:
Giving the following information:
Division A:
The contribution margin of $79,300
Division B:
Contribution margin of $126,200.
The total traceable fixed costs are $72,400 and total common fixed costs are $34,900.
<u>To calculate the net operating income, we need to deduct from the combined contribution margin the fixed costs.</u>
<u></u>
Net income= (79,300 + 126,200) - 72,400 - 34,900
Net income= $98,200
Answer:
The three primary characteristics of perfect competition are (1) no company holds a substantial market share, (2) the industry output is standardized, and (3) there is freedom of entry and exit. The efficient market equilibrium in a perfect competition is where marginal revenue equals marginal cost.
Answer:
The correct answer is use of multiple cost drivers to allocate overhead
Explanation:
Use of direct labor hours or direct labor cost to assign overhead to products is typical of traditional costing systems as overhead is believed to have positive relationship with labor-related variables.
Besides,using a business-wide or plant-wide single predetermined overhead rate is not feature of traditional systems of costing.
Since labor-related variables such as direct labor hours or direct labor cost is assumed to be a driver of overhead cost,hence an appropriate overhead absorption basis,it is perfectly understood that there is correlation between direct labor and incurrence of overhead cost in the business.
Answer:
A) The Heckscher-Ohlin model offers a reasonable explanation of the pattern of trade and the gains from trade.
Explanation:
A) The Heckscher-Ohlin model mentions that some countries have capital products and some have labor work products. In that condition some countries might be producing capital products like cars and mobile phones however these countries might have less labor work products like agricultural products so that they can not produce enough food. In that sense there is a trade that occurs between two countries one having a capital like a car and others having a high food production so the trade gets balance thanks to this import and export of products. Basically, each country exports its products that they are leading whether it has capital good or labor work good and imports goods that they are lack of it whether it is capital or labor work products. Well, gains from trade happens thanks to this exchange.
B) No, the Heckscher-Ohlin model offers a pattern of trade between two countries according to capital goods and labor work products.
C) No, the Heckscher-Ohlin model explains the gain. Possible to gain from your goods. If a country produces capital good then gains from that or produce labor work good then gains from it by export to other countries that they have lack of that good.
D) The Ricardian trade model focuses only on labor work goods but Heckscher-Ohlin states that trade based on labor work goods and capital goods.
Answer:
$11.59 million
Explanation:
The computation of earning before interest and tax is shown below:-
Free cash flow = Operating cash flow - Investment in operating cash flow
$8.17 million = Operating cash flow - $2.17 million
Operating cash flow = $10.34 million
For calculating the earning before interest
Operating cash flow = Earning before interest - Taxes + Depreciation
$10.34 million = Earning before interest - $2.17 million + $0.92 million
= $10.34 million = Earning before interest - $1.25 million
Earning before interest = $11.59 million
