Answer:
Goodwill = 25,000
Explanation:
Goodwill is an intangible asset, is the differential reflected in a consolidated balance sheet immediately after the business combination between the purchase price of a company and the fair market value of identifiable assets and liabilities. Goodwill is recorded when the purchase price is higher than the sum of the fair value of all identifiable tangible and intangible assets purchased in the acquisition and the liabilities assumed in the process.
In this case:
Goodwill = Purchse Price - Net assets fair value
Goodwill = 340,000 - 315,000
Goodwill = 25,000
The difference between the book value and fair value of the acquired company are adjustments to the amount presented in the consolidated balance sheet.
Answer:
Firstly packaging and labeling costs can be either be charged on variable overheads cost or on selling overheads costs( distribution and marketing cost).
Assuming they are charged on Selling overheads cost:
There are no figures to illustrate the change on inventory cost as a result of moving Labeling and packaging from selling overheads to Direct Costs ( DC) but indefinitely when there are new costs charged to the direct costs of inventory, inventory cost will increase by their exact costs.
If they are charged on Variable overheads then they are already part of inventory cost as is variable cost on Work in process therefore there wont be change in inventory cost just change in direct material.
Explanation:
It will lower your credit rating by so much based on your credit rating before bankrupycy
A)Degree of operating leverage=Contribution/EBIT
=6400,000/2140000=2.99.
B) Degree of operating leverage=Contribution/EBIT
=5600,000/1340000=4.18
C) Degree of operating leverage=Contribution/EBIT
=7600,000/1015000=7.49
One conclusion that companies can draw from examining operational leverage is that companies that minimize fixed costs can increase profits without changing selling prices, contribution margins, or unit sales.
The Operating Leverage formula is used to calculate a company's break-even point, helping to set a reasonable selling price that covers all costs and produces a profit. This gives you insight into how well your company is using fixed-cost items such as inventory and machinery to make a profit. The more profit a company can extract from the same amount of fixed assets, the higher its operational leverage.
Learn more about operating leverage at
brainly.com/question/24278932
#SPJ4
