Answer:
c.$36,750
Explanation:
If Bulls Division were dropped, then the total segment margin would be $147,000 and the total common cost would be $110,250, Then:
Operating income = Segment margin - Total cost
= $147,000 - $110,250
= $36,750
Therefore, The Operating income for Knickers Corporation as a whole if the Bulls division were dropped would be $36,750.
Answer:
Portugal has comparative advantage in producing olives.
Switzerland has comparative advantage in producing fish.
Portugal can gain from trade if it receives more than 3 pounds of fish per crate of olives.
Switzerland can gain from trade if it receives more than 1/11 of olives for each pound of fish.
d. 18 pounds of fish per crate of olives.
Explanation:
Switzerland and Portugal both countries can produce Olives and fish. One country has advantage in producing fish while other has advantage in producing olives. Both countries can gain from trade if they find a intermediary way so that both countries can be in win win situation. It is beneficial for Portugal if it trades with Switzerland if it receives more than 3 pounds of fish.
Answer:
Under Cash Basis all transactions for which cash is exchanged whether paid or received is accounted for.
Cash Basis Income Statement
Sales Revenue = $6,650
Customer Deposits = $4,550
Total Revenue = $11,200
Less: Expenses:
Wages = ($700)
Net Income = $10,500
Under Accrual basis, the transactions are recorded as to the period they relate, and it is not necessary to exchange cash for the same.
Accrual Basis Income Statement
Sales Revenue = $12,050
Total Revenue = $12,050
Expenses
Wages = ($700)
Utilities = ($330)
Total Expenses = ($1,030)
Net Income = $11,020
Answer:
Equilibrium Price - 3
Equilibrium Quantity - 3
Explanation:
The price at which there will be equilibrium in the chocolate market is 3 units while the corresponding quantity is also 3 units.
<u>The equilibrium price and quantity represents the price and quantity where the demand for a product is equal to the supply for the same product respectively.</u>
<em>In the graph, the point of intersection of the demand and the supply curve represents the equilibrium point. At this point, the price on the Y axis is 3 units while the corresponding quantity on the X axis is also 3 units.</em>
Answer:
Company A and Company B
Calculation of Goodwill on Acquisition:
= $212,433
Explanation:
a) Current market value of:
Tangible physical assets = $1,234,567
Intangible asset = $125,000
Total assets' value = $1,359,567
less Liabilities:
Operating = $160,000
Financial = 600,000 ($760,000)
Net value of assets = $599,567
Purchase Price (Company B) $812,000
Goodwill $212,433
b) Company A acquired Goodwill when it bought over Company B. This is an intangible asset which is calculated by subtracting the net value of assets (the difference between the fair market value of the assets and liabilities) from the purchase price of the acquired subsidiary.
