Answer:
(D) Operating income will increase by $27,300.
Explanation:
The sales increase will also generate an increase in the variable cost
The fixed cost, remaing unchanged against the volume of production. they do not increase or decrease at the factory level.
So the operating income will increase by the diffrence between sales and variable cost
sales increase will be:
779,000 x 10% = 77,900
variable cost increase:
506,000 x 10% = 50,600
increase in operating income 77,900 - 50,600 = 27,300
Answer:
Explanation:
1. Accounts Receivable - Asset (Come under Current Asset)
2. Equipment - Asset (Come under Fixed asset)
3. Fees Earned - Revenue (Come under income statement)
4. Insurance Expense - Expense (Come under income statement)
5. Prepaid Advertising - Assets (Come under Current Asset)
6. Prepaid Rent - Asset (Come under Current Asset)
7. Rent Revenue - Revenue (Come under income statement)
8. Salary Expense - Expense (Come under income statement)
9. Salary Payable - Liability (Come under current liabilities)
10. Supplies - Asset (Come under Current Asset)
11. Supplies Expense - Expense (Come under income statement)
12. Unearned Rent - Liability (Come under current liabilities)
If the driver were to get into a crash or accident that was not their fault
Answer: Idk but try downloading more apps it’s a lot easier to have more than one
Explanation:
Land improvements are capitalized separately from Land because land improvements have only a limited useful life.
Land is a special fixed asset which means that:
- It is purchased for long term use
- It is not depreciated because it lasts forever
Land improvements on the other hand, will not last forever. They will eventually wear out and need to be replaced. They are therefore capitalized separately from land so that they can be depreciated if need be.
In conclusion, land improvements are capitalized separately from land because they have a limited useful life.
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