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8090 [49]
3 years ago
10

During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pr

etax income was $400,000. What amount should have been reported as fixed costs in the company's contribution margin income statement for the year in question?
Business
1 answer:
ANEK [815]3 years ago
5 0

Answer:

Fixed costs= 1,100,000

Explanation:

Giving the following information:

During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pretax income was $400,000.

We need to reverse engineer the income statement to determine the total fixed costs. We know that the pretax income is the difference between the total contribution margin and the fixed costs.

Pretax= total contribution margin - fixed costs

400,000= 1,500,000 - FC

Fixed costs= 1,500,000 - 400,000

Fixed costs= 1,100,000

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6 0
2 years ago
Indigo Corporation wants to transfer cash of $150,000 or property worth $150,000 to one of its shareholders, Linda, in a redempt
MaRussiya [10]

Answer:

$75,000 recognised gain

Explanation:

Indigo corporation wants to transfer $150,000 in cash or property to one of its shareholders Linda

Property A has a basis of $75,000

Property B has a basis of $195,000

Therefore the recognized gain or loss of property A is distributed in redemption of Linda's share can be calculated as follows

= fair market value - basis

= $150,000-$75,000

= $75,000 recognised gain

Hence indigo's recognised gain if it distributes property A in redemption of Linda's share is $75,000

6 0
2 years ago
Jose and Zola want to purchase their first home. Jose makes $23.50 an hour and works 40 hours per week. Zola makes $21.50 an hou
vovangra [49]

Answer:

$1,411.25

Explanation:

The computation of the combined gross monthly income is shown below:

The earnings of Jose = $23.50 × 40 hours = $940

And, the earnings of Zola is

= $21.50 × 40 hours + 5 hours × $21.50

= $860 + $161.25

The total earnings is

= $940 + $860 + $161.25

= $1,961.25

And, the expenses are

= $500 + $50

= $550

So the combined gross monthly income is

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= $1,411.25

7 0
3 years ago
Although GDP is a reasonably good measure of a nation's output. It does not necessarily include all transactions and production
Scorpion4ik [409]

Answer:

Options (a), (b) and (d) are correct.

Explanation:

Gross domestic product refers to the total value of production of goods and services during a period of time within the boundaries of the nation. GDP of a nation also represents the standard of living of that nation. If the GDP of a nation increases then it is assumed that the standard of living of that nation also increases.

But there are some flaws or loopholes in this assumption as non-marketing activities and the underground economy makes the GDP an imperfect measure of a particular economic activity.

Is doesn't includes the quality of goods received by the consumers as it doesn't contribute towards GDP of a nation.

It doesn't takes into account the non-market activities such as self service and house work. If a person is cleaning his home then this doesn't contribute towards GDP but if he hires someone to do the same job then then this will contribute towards the calculation of GDP as it is counted as a consumption expenditure.

Loss of enjoyment will also not counted while determining the GDP.

Government pay checks to soldiers will be included in the GDP because it increases the GDP of a nation.

8 0
2 years ago
All of the following are correct statements about transfers between divisions located in countries with different tax rates exce
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3 years ago
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