Answer:
a. $162,000 decrease
Explanation:
Sales $540,000
(2700 unit * $200)
Less:
Direct materials $172,800
(2700 unit * 64)
Direct labor $91,800
(2,700 unit * $34)
Variable manufacturing overhead $118,800
(2700 unit * $44)
Contribution loss from existing sale <u>$318,600</u> <u>$702,000</u>
2700 unit * ($260-$64-$34-$44)
Effect on Net operating income <u>-$162,000</u>
Answer:
$700,000
Explanation:
Data provided in the question
Sales price of the home = $960,000
Cost price of the home = $260,000
Based on the above information,
The computation of the amount of gain included in gross income is shown below:
= Selling price of the home - cost price of the home
= $960,000 - $260,000
= $700,000
Hence, the amount of gain i.e $700,000 is included in the gross income
Answer:
d. 5704.02
Explanation:
Nper = 30*12 = 360
Rate = 10%/12 = 0.008333
PV = 650,000
Using the MS Excel function:
Monthly payment = PMT(RATE, NPER, -PV)
Monthly payment = PMT(10%/12, 360, -650000)
Monthly payment = $5,704.02
Answer:
A. Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak standards, thus reducing their costs and increasing their profits.
D. self-sufficiency argument.
Explanation:
In the case when there is a race to the bottom scenario so it would be described that the multinational companies that are profit seeking is shifting their production from that countries who have the strong environmental standards to the weak standard countries so that the order would be decreased due to this the profit would increase
In the other case, when the nation is not too much depend on other countries for supplies so this case we called as self-sufficiency argument as they managed themselves rather depending on another