<span>If a company's actual results for revenues, net profits, EPS, and ROE turn out to be worse than projected, then it is usually because a</span> company might lose its sales revenue and market share if it is unable to respond rivals market strategy.
Answer:
The correct answer is (a)
Explanation:
The U.S is considered as one of the major global economies in the world which controls the international trade market. Some of the top organisations and business are working in the US which is depicted by the total sales revenue that is around 2 trillion. The corporation is a type of business that accounts for the majority of sales revenue in the US because corporations are responsible for collecting 60% of the total revenue in the US.
Answer:
Correct option is (B)
Explanation:
Given:
Beginning capital = $80,000
Net income = $35,000
Drawings = $18,000
Net income is added to opening capital and deduct drawings to arrive at capital balance at the end.
Capital at the end of the year = opening capital + net income - drawings
= 80,000 + 35,000 - 18,000
= $97,000
Answer: Factory overhead control
Explanation: Factory overhead is the account where the amount of cost incurred while manufacturing a product is recorded and no direct labour or material is recorded. When the manufactured goods are finished and produced they are recorded as expenses when the goods are sold as manufactured finished products.
All the expenses related to the factory are included in this account such as rent, utility, electricity, supplies, tools. Factory overhead is known as manufacturing burden or expenses.
Answer:
1. SEA DOWN
INCOME STATEMENT
conventional Variable
sales 10535000 10535000
cost of sales -7310000 - 4730000
commission - 2365000
contribution 3440000
gross profit 3225000
commission -2365000
fixed costs - 2760000
operating costs -245000 -245000
net income 615000 435000
2. Absorption method has the higher operating income, because manufacturing costs are charged to the cost of units and are usually less costly per unit ( the more units produced the lesser fixed costs become) than in total and in Variable method fixed costs are taken as a total.
3. conventional Variable
sales 11270000 11270000
cost of sales -7820000 -5060000
commission -2530000
contribution 3680000
gross profit 3450000
commission -2530000
fixed costs - 2760000
marketing cost -150000 -150000
operating costs -245000 -245000
net income 525000 525000
If the company is using Absorption method as basis for decision then it should not take the promotion as it yields to a decrease in net income. If the company uses Variable method as basis then it should take the promotion as it leads to an increase in profits.
Overall I think the company should take the promotion because it has an increased contribution to fixed costs and the two methods yield the same net income and that is a guarantee.
Explanation:
units
opening 0
produced 230000
closing - 15000
sold 215000
unit cost
Arbsoption Variable
VC 22 22
FIXED 12
UNIT COST 34 22