Answer:
DR Interest receivable 26,400
CR Interest revenue 26,400
Explanation:
As first lease has already been paid, the amount left of the lease is;
= 280,000 - 40,000
=$240,000
Interest is 11% so the interest to be received in December is;
= 11% * 240,000
= $26,400
This will be debited to Interest receivable as it is money owed and credited to Interest revenue as it is money earned.
Answer:
False
Explanation:
A firm should end production and shut down only when its total revenue falls below variable costs, because at this point, production will bring about more losses, compared to if the company isn't producing at all.
<u>If total revenue exceeds and can cover its variable cost, a firm should remain in operation in the short run</u> (even if it is incurring losses), as this contributes to paying off the firm's fixed costs.
Answer:
due to elimination
income will decrease by $526000
Explanation:
Given data
Sales = $1180000
Variable expenses = $654000
Fixed expenses = $620000
to find out
incremental effect on net income
solution
we know here total sale is $1180000 and Variable expenses is $654000
so contribution if the division is dropped is sales - Variable expenses
put these value
contribution = 1180000 - 654000
contribution = 526000
so we say that due to elimination
income will decrease by $526000
Answer:
The answer is A) invest more resources at the front end of the value chain in research and development and design to produce a superior product.
Explanation:
Total quality management is a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.