Answer:
good luck
Explanation:
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Answer:
Here the variable cost can be computed using the following formula:
Variable cost = (Sales commissions + Shipping expense + Miscellaneous selling expenses) ×Sales
Variable cost = (4% + 1% + 3/4%) x $500,000 = $28,750
Fixed cost = Sales manager's salary + Advertising expense + Miscellaneous selling expenses
= $30,000 + $25,000 + $2,100
= $57,100
<em>Total selling expense budget = Variable cost + Fixed cost</em>
<em>= $28,750 + $57,100 </em>
<em>= $85,850</em>
Answer:
The correct answer is b. a limitation-of-liability clause.
Explanation:
It is understood by pact of exemption of responsibility, the stipulation negotiated by the subjects of the obligation, directed to suppress the responsibility of the debtor in case of breach of the same.
The doctrine specialized in mountain law states that: "If a company organizes an activity and forces the participants to sign a document in which they assume full responsibility for what happens to them, it is of little use, the organizer is still responsible" . Although this statement must be expanded and nuanced, it can serve as a guide for what we will study next.
Answer:
Profit leverage effect. The explanation of this question is given below in explanation section.
Explanation:
<u>Profit leverage effect</u> holds that $1 in cost savings increases pretax profits by $1, while a $1 increase in sales increases pretax profits by only $1 multiplied by the pretax profit margin.
The profit leverage effect is about reducing operating expenses that is more efficient than increasing sales. It is situated at the start of the production process of a service or product, the procurement stage is in an excellent position to reduce overall costs, especially in the short term. This is why companies often resort to reducing headcount when they run into financial difficulties. Reducing operating costs is the fastest way to produce a short-term impact on the bottom line. A dollar saved in purchasing almost always has a greater impact on profit than a dollar increase in sales. However, it is remember that, only a small portion of each sales dollar makes it to the bottom line. The rest is spent on the costs of doing business—e.g., cost of administrative, goods sold, logistics, and marketing costs. These costs must be deducted from each sales dollar to determine its contribution to operating profit (it is also known as, earnings before interest and taxes). By contrast, every dollar you save through purchasing goes straight to operating profit.