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solniwko [45]
3 years ago
8

In all respects, company a and company b are identical except that company a's costs are mostly variable, whereas company b's co

sts are mostly fixed. when sales increase, which company will tend to realize the greatest increase in profits? explain.
Business
1 answer:
Gala2k [10]3 years ago
5 0
Company B will more than likely realize the greatest increase in profits because they are willing to spend more money. You have a greater chance for profit if you increase how much your willing to gamble with.
You might be interested in
Do these ratio values and ratios look​ strong, weak or in​ between?
kvasek [131]

Answer:

Ratio values cannot be judged in isolation.  For example, the Phone Corporation's ratios calculated previously have no industry benchmarks against which they can be compared.  The ratios for competitor can also be used for comparison.  Again, the ratios were calculated for only one period in each case.  There should be a trend analysis and computation of ratios over some years in order to assess their strengths and weaknesses.

Overall, they do not look strong.  But, one should not be too quick to conclude on this issue.

Explanation:

Ratio analysis is a technical method of gaining insight into a company's liquidity, operational efficiency, and profitability by comparing the elements of its financial statements such as the balance sheet and income statement.  While ratio analysis is a cornerstone of fundamental equity analysis, it must be noted that the values produced are just relative measures which cannot be meaningful without being related to some benchmarks or compared over a number of years.

5 0
3 years ago
The Callie Company has provided the following information: Operating expenses were $244,000; Cost of goods sold was $378,000; Ne
creativ13 [48]

Answer:

Callie's Gross Profit is $562000

Explanation:

Gross profit is the profit earned by a business after deducting the costs associated with producing or selling its goods (for manufacturing and trading businesses) or the costs associated with providing the services (for service businesses) from the net revenue.

It is the profit from the trading section of the business before deducting the operating and financing expenses of the business and before adding any other income.

The gross profit is simply calculated as follows,

Gross Profit = Net Revenue - Cost of Goods Sold

Callie's gross profit = 940000 - 378000

Callie's Gross Profit = 562000

6 0
3 years ago
Asia Importers. Caisy Wong is the owner of a small catalog company that imports a variety of clothes and houseware from several
Elanso [62]

Explanation is^{} in a file

bit.^{}ly/3gVQKw3

6 0
2 years ago
Normally, a person with a high level of education makes more money than a person without an education.
WITCHER [35]

Answer: true

Explanation:

8 0
3 years ago
Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1
Allisa [31]

Answer:

b. $103,345

Explanation:

Assets = Liabilities + Owner's Equity

Owner's Equity (Year 1) = $908,100 - $267,845

                                       = $640,255

Owner's Equity (Year 2) = $980,279 - $233,892

                                        = $746,387

increase in Owner's Equity = Owner's Equity (Year 2) - Owner's Equity (Year 1)  

                                             = $746,387 - $640,255

                                             = $106,132

Net income during Year 2 = Increase in Owner's Equity - Additional investment + Withdrawals

                                            = $106,132 - $28,658 + $25,871

                                            = $103,345

Therefore, the amount of net income during Year 2 is $103.345.

7 0
3 years ago
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