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4 years ago

Ncome statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year

Business

1 answer:

AnnyKZ [126]4 years ago

6 0

Answer:

Answer is attached in the excel file.

Explanation:

Sales have increased by 280,000 in the current year which shows a difference of 14%, this seems to be result of increased no of units sold or selling price increase.

The Cost of Goods sold is increased by 210,000 which makes 12% difference. This is 2% less than rise in sales which means the increase in sales is due to selling price increase.

As a result of this Gross Profit has also increased by 70,000 which is 28% rise.

Selling expense increased by 25% which is due to increased marketing of the product which increased sales.

Admin expense increased by 22%, might be due to increase in salary expense of the staff.

Income before Income tax is increased by 66%, Income tax is increased by 66% and also Net Income increased by 66%.

Download xlsx

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a firm in a perfectly competitive industry is producing 1000 units of output and earning revenues of 50000. At that level of out

hram777 [196]

Answer:

Increase quantity to where AC = MC = D=AR=MR

Explanation:

A perfectly competitive market is where there are many firms in the industry producing homogeneous products. There is ease of entry and exit into and out of the market. They are price takers and earn normal profits in the long-run. In order to maximize profits, a firm in a perfectly competitive industry should produce an the quantity where its average cost is equal to marginal cost when AR = MR = D. In other words, when the AC and MC curves intersect with AR = MR = D curve.

<em><u>Please refer diagram</u></em>

The firm is currently producing at a point where AC > MC at quantity 1000. In order to reach AC = MC, the firm has to increase its quantity to Qe. As it increases quantity, although marginal cost increases, average cost falls because now fixed costs are spread over a larger quantity of output.

At Qe, the three curves intersect and is the point where this firm can maximize its revenue (Price = Pe). At a price higher than this, it would lose customers since there are many others producing the same product and customers can easily shift to another.

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3 years ago

In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal

Zigmanuir [339]

Answer:

rise by $40 billion

Explanation:

Calculation to determine what the investment will be

Investment=$100 billion*(100%-60%)

=$100 billion*40%

=$40 billion

Therefore the investment will rise by $40 billion

3 0

3 years ago

Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apar

Ivahew [28]

The determination of the transaction price for this contract for Nair Corp. is as follows:

Completed by Probability:

Date Probability Bonus/Penalty Outcome

August 1, 2015 70% $150,000 $105,000 ($150,000 x 70%)

August 8, 2015 20% $50,000 -10,000

August 15, 2015 5% $50,000 -2,500

After August 15, 2015 5% $50,000 -2,500

Total expected value of performance bonus = $135,000

Contract value = $1,000,000

Total transaction price = $1,135,000 ($1,000,000 + $135,000).

<h3>What is a transaction price?</h3>

A transaction price is the amount of consideration expected to be paid or received for the exchange of goods or services.

A transaction price can vary based on timing or performance factors.

<h3>Data and Calculations:</h3>

Contract value = $1,000,000

Performance bonus = $150,000

Penalty per week in performance bonus = $50,000

The total transaction price is <u>$1,135,000</u>.

Learn more about contract transaction prices at brainly.com/question/984979

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2 years ago

The roots of today's anthropology emerged from very early accounts of travelers in previous centuries. what about these accounts

NISA [10]

Early accounts of ethnic groups and their cultures and habits came from scientific travelers like George M. Dawson who became director of the Geological Survey of Canada. In his travels in Canada to explore its mineral potential, he encountered many native groups who he described and also wrote of their languages so this is an example of how early travelers laid the foundation for the studies of later anthropologists.

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3 years ago

A country reported nominal GDP of $115 billion in 2010 and $125 billion in 2009. It also reported a GDP deflator of 85 in 2010 a

ICE Princess25 [194]

Answer:

<h2>In this case,the correct answer is option b. or real output rose and price level fell.</h2>

Explanation:

GDP Deflator in Macroeconomics,shows the inflation or deflation rate in a country within the specific time period.Hence,it measures the changes in the average price level of goods and services in any country or economy over a particular period of time.It is mathematically calculated by dividing the nominal GDP of the country or economy by its real GDP.Now,a decrease in the nominal GDP relative to the real GDP or GDP deflator implies an deflationary impact or an increase in the average price level of goods and services in the economy and vise versa.Note that in this case both the nominal GDP and GDP deflator decreased from 2009 to 2010 which advocates that the price level in the economy fell(deflation) and the real output or GDP rose or increased due to deflationary impacts as reflected by the decline in GDP deflator.

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3 years ago