With an assumption that the company's accounting year is same as the calender year, the income statement would show $1,000 of rent expense.
<h3>What is an
income statement?</h3>
An income statement refers to a financial statement that shows a firm's income and expenditures for an accounting year.
Rent expenses = $2,400 prepaid rent / 12 months
Rent expenses = $200 per month
Rent expenses = $200 rent expense per month x 5 months (in Year 2)
Rent expenses = $1,000 rent expense
In conclusion, with an assumption that the company's accounting year is same as the calendar year, the income statement would show $1,000 of rent expense.
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Can totally vary. Normally, it can create 1,000 dollars up to 2,000 dollars if it's a good investment.
Answer:
b. she could not meet a rapid rise in demand.
Explanation:
Marketing penetration strategy is an approach where a business deliberately sets a low price to a product it's introducing to the market. The objective of setting the low price is to entice customers to buy the product, thereby creating demand for it. The penetration strategy discourages other firms from entering the market. Marketers using this strategy seeks to establish a sizeable market share for a product within a short period.
Marie cannot apply the market penetration strategy because of her limited production capacity. This approach increases the demand for a product in a short time. Marie will not be able to cope with an increase in demand at the moment.
Units produced and sold: 3000 meals
Revenue: $18000
Cost of goods sold: ($13500)
Gross profit: $4500
Administrative Costs: ($2400)
Operating Profit: $2400
Sales Revenue - Cost of goods sold - Administration cost = Operating Profit
Units Produced and sold: 3000+300 meals
Revenue: $18000+ $3.5*300 = 19050
Cost of goods sold: ($13500) + (4500) = ($18000)
Gross profit: $1050
Administrative Costs: ($2400)+($600) = ($3000)
Operating Profit: ($1950)
New operating profit - old operating profit = Change in Operating İncome
-1950-2400 = -$4350
The Operating profit reduced by $4350
