Answer:
$62,100
Explanation:
Given that,
Sales price per unit = $ 40
Variable costs per unit:
Manufacturing = $ 23
Marketing and administrative = $ 8
Total fixed costs:
Manufacturing = $ 76,000
Marketing and administrative = $24,000
Total incremental costs:
= Variable manufacturing + Variable marketing and administrative
= (6,900 × $23) + (6,900 × $8)
= $158,700 + $55,200
= $213,900
Incremental income:
= Incremental revenue - Total incremental costs
= (6,900 × $40) - $213,900
= $276,000 - $213,900
= $62,100
Therefore, the operating income increases by $62,100.
Answer:
1.60 percent
Explanation:
exact real rate of return on this investment = interest rate - inflation rate
total revenue gotten by Christina = ( 500 × $ 64.25) + $ 738 = $ 32863
total money invested = 500 × $ 62.30 = $ 31150
her profit = $ 32863 - $ 31150 = $ 1713
interest = $ 1713 / $ 31150 = 0.054992 × 100 = 5.4992 %
exact interest rate = 5.4992 % - 3.9% = 1.5992 approx 1.60 percent
Answer:
1. Periodicity assumption.
2. Going concern assumption.
3. Historical cost principle.
4. Economic entity assumption.
5. Full disclosure principle.
6. Monetary unit assumption.
Explanation:
1. <u><em>Periodicity assumption</em></u>: The economic life of a business can be divided into artificial time periods. It is also known as the Time period assumption.
2. <em><u>Going concern assumption</u></em>: The business will continue in operation long enough to carry out its existing objectives.
3. <em><u>Historical cost principle</u></em>: Assets should be recorded at their acquisition cost.
4. <em><u>Economic entity assumption</u></em>: Economic events can be identified with a particular unit of accountability.
5. <em><u>Full disclosure principle</u></em>: Circumstances and events that could make a difference to financial statement users should be disclosed.
6. <em><u>Monetary unit assumption</u></em>: Only transaction data that can be expressed in terms of money should be included in the accounting records.
Answer:
Ending retained earnings balance is 700.
Explanation:
In order to find the ending retained earnings we will have to start from the beginning retained earnings. The beginning retained earnings are 1050. Because the company has a net loss of 150 we will subtract 150 from 1050. And we are left with 900. After this we will subtract the 100 cash dividends as these are also paid from the retained earnings that the company has so we are left with 800. Also the company pays a stock dividend worth 100 so we will also subtract that and are left with 700. So the ending retained earnings balance is 700.
Answer: C.) Horizontal sum of all the individual firm's supply curve
Explanation: A perfectly competitive market, is that in which sellers or suppliers of a certain product are numerous such that a slight increase in price, and demand could fall to 0. Here, an individual seller has no control over the price of commodities. The supply curve tells how much quantity will be produced at different prices. Therefore the market supply curve is determined by all individual sellers individual price in other to determine the overall quantity to be produced at varying market price. Prices are drawn horizontally from the y-axis to determine quantity produced at different prices for each indivudual seller which is summed to generate the market supply curve.
