Answer:
1. Authorized shares = 300,000 shares
2. Issued shares = 160,000 shares
3. Outstanding shares
= Issued shares- Shares repurchased
= 160,000 - 25,000
= 135,000 shares
Explanation:
Authorized shares are shares that a firm is allowed by law to issue to the public.
Issued shares are shares that a company offers to the public for subscription.
Outstanding shares are shares remaining after the share repurchase.
Answer:
I think b because they knew they were gonna get caught
Answer:
Operating income increases by $40,000.
Explanation:
Given that,
Total fixed costs = $840,000
Sale price per unit = $60
Variable cost per unit = $30
Additional amount spend on advertising = $35,000
Sales volume would increase by 2,500 units.
Contribution margin:
= Sales - Variable costs
= $60 - $30
= $30 per unit
Increase in operating income:
= Increase in contribution margin - Increase in Fixed costs
= ($30 × 2,500 units) - $35,000
= $75,000 - $35,000
= $40,000
Answer:
C. The speed with which general prices are rising
Explanation:
Inflation measures the rate at which the general prices of goods and services are increasing in an economy. During inflation, the purchasing power of a country's currency is eroded. Inflation means a selected basket of goods will cost more this period than it did in the previous season.
The consumer price index or CPI is the most acceptable index used in determining the rate of inflation. Inflation may result from high economic growth where firms and individuals have increased incomes resulting in too much money in circulation. A moderate level of inflation is required to promote spending and sustain favorable economic growth.
