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4 years ago

Contribution Income Statement and Cost-Volume-Profit Graph

Business

1 answer:

Phoenix [80]4 years ago

8 0

Answer:

Profit: $ 41,000

Explanation:

Kopi Company

Contribution Income Statement

For the Month of July 2017

Sales 35*7000 $ 245000

Less variable costs

Direct materials $ 10*7000 70,000

Direct labor 2*7000 14000

Manufacturing overhead 5*7000 35000

Selling and administrative 5*7000 35000

Contribution margin 91,000

Less fixed cost: 50,000

Manufacturing overhead 35000

Selling and administrative 15000

Profit $ 41,000

In contribution margin income staatement the variale costs are deducted from the sales to get the contribution margin and the fixed expenses are deducted to get the profit.

As there are no ending and beginning inventories the profit will not change under both absorption and variable costing.

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A company uses straight line depreciation for an item of equipment that cost $12000, had a salvage value of $2,000 and a five ye

timurjin [86]

Answer:

option (d) 2400

Explanation:

Data provided in the question:

Initial book value = $12,000

Salvage value = $2000

Useful life = 5 years

Thus,

Using the straight line method of depreciation

Annual depreciation = [Cost - Salvage value] ÷ Useful life

= [ $12,000 - $2,000 ] ÷ 5

= $2,000

Accumulated Depreciation for 3 years

= Annual depreciation × Time

= $2,000 × 3

= $6,000

Book value after 3 years = Cost - Accumulated depreciation

= $12,000 - $6,000

= $6,000

Remaining useful life = 2 years

Reduced Salvage value after 3 years = $1,200

Therefore,

Depreciable value of the Asset = Book value - Reduced salvage value

= $6,000 - $1,200

= $4,800

Revised depreciation to be charged every year

= Depreciable value of the Asset ÷ (Remaining useful life)

= $4,800 ÷ 2

= $2,400

Hence,

The correct answer is option (d) 2400

4 0

4 years ago

A common practice for government entities, particularly schools, is to issue short-term (promissory) notes to cover daily expend

diamong [38]

This shorter payback period is positive and beneficial to the consumer, as it allows for harmony with amortization expenses.

We can arrive at this answer because:

A short payback period is beneficial because of its relationship to amortization, as long-term debt allows this amortization to take place.
These amortization expenses allow the cost of long-term assets to be represented in the payment.
However, when the short-term payback period allows for amortization, causing the asset's value to be reduced by the amount that will be paid by the consumer.

In this case, we can state that in cases like the one shown in the question above, the short payback period is very beneficial and interesting to the consumer, as it can promote economic benefits.

More information:

brainly.com/question/23160357?referrer=searchResults

5 0

3 years ago

Easywriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. management recently finished analyzing the re

maxonik [38]

a. 50 cents

Contribution margin per unit is price per unit- variable cost per unit

1.75 - ($50,000/40,000 units)

1.75 - 1.25 = $ .50

b. $8750

Margin of safety is the expected sales - break even sales

(45,000 units * $1.75 per unit) - (40,000 *1.75)

78,750 - 70,000 = $8750

6 0

3 years ago

Which of the following is not true regarding economic exposure? a. The impact of a change in the local currency on inflow and ou

Natali [406]

Answer:

Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.

Explanation:

The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.

Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.

Option C and D are also incorrect because domestic firms don't face any economic exposure.

8 0

4 years ago

100 points

yKpoI14uk [10]

Answer:

I think it is E it guss maybe it is not the answer

3 0

3 years ago

Read 2 more answers