The foreign MNC's like UPS seeking to invest in India because of the country's market potential, skilled workforce and political stability.
The foreign MNCs are investing in India because of cheaper production costs. India is a critical growth market for logistics giant United Parcels Service (UPS) as it aims to provide the predictable and reliable service to B2B domestic market through its new venture called MOVIN.
India's market potential, skilled workforce and political stability are the three key reasons that make India the favored destination for foreign investment. When compared to other countries India is a relatively cheaper place to conduct business.
Hence, these reasons attracts foreign investors towards India.
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Answer:
Bad debt expense A/c Dr $4,900
To Allowance for doubtful debts $4,900
(Being bad debt expense is recorded)
Explanation:
The journal entry is shown below;
Bad debt expense A/c Dr $4,900
To Allowance for doubtful debts $4,900
(Being bad debt expense is recorded)
The computation of the bad debt expense is shown below:
= Net Credit sales × estimated percentage given - credit balance of allowance for doubtful debts
= $920,000 × 0.6% - $620
= $5,520 - $620
= $4,900
Answer:
one party agrees to purchase the entire production that the other party supplies.
Answer:
Tunneling Inc.
Degree of operating leverage
= Contribution Margin divided by Operating Income
= $440,000/$290,000 = 1.52
Explanation:
(a) Data and Calculations:
Sales Revenue = $840,000 (10,000 x $84)
Variable cost = $400,000 (10,000 x $40)
Contribution = $440,000
Fixed costs = $100,000
Depreciation = $50,000
Operating Income = $290,000
Tax (21%) ($60,900)
Net Income = $229,100
(b) The degree of operating leverage for Tunneling Inc. is 1.52. It shows the financial impact of a change in sales revenue on Tunneling Inc.'s earnings. Analysts usually work this ratio out to determine this important effect.
