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3 years ago

Which of the following statements regarding service companies is true?

Business

2 answers:

Kitty [74]3 years ago

7 0

Answer:D. A service company's variable costing income statement includes contribution margin

Explanation:

A variable costing income statement is used to arrive at the contribution margin which is the difference between total sales and total variable costs. The fixed cost is deducted from the contribution to arrive at the net profit or loss

VladimirAG [237]3 years ago

5 0

Answer:

d. A service company's variable costing income statement includes contribution margin.

Explanation:

Variable costing can be defined as the costing that is obtained from variable manufacturing cost which includes the cost of direct labour, direct materials and the cost of manufacturing overhead of the product. Another name for variable cost is Direct cost.

Variable costing helps us to know what the price of a product would be. It can also tell us if we should continue producing that product or not. Variable costing helps us to control the cost of manufacturing a product.

A service company's variable costing income statement includes contribution margin. Contribution margin helps the services company to be able to pay for their variable cost using the revenue generated by the company. It is calculated as Selling price - Variable cost.

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ABC Company has a cash balance of $9,000 on April 1. The company must maintain a minimum cash balance of $6,000. During April ex

german

I think this may be C

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2 years ago

Can someone help??????

Rudiy27

I think it's D but I can't say I'm 100% sure..

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3 years ago

Aquilera, Inc., has sales of $19.6 million, total assets of $14.6 million, and total debt of $5.4 million. The profit margin is

Gnom [1K]

Answer:

a. $1,764,000.00

b. 12.08%

c. 19.17%

Explanation:

a. What is the company's net income?

Profit margin = Net income ÷ Sales

Therefore, we have:

9% = Net income ÷ $19,600,000

Net income = $19,600,000 × 9% = $1,764,000.00

Therefore, the net income of Aquilera, Inc. is $1,764,000.00

b. What is the company's Return on Assets (ROA)?

ROA = Net income ÷ Total Assets

ROA = $1,764,000 ÷ $14,600,000 = 0.120821917808219 = 12.08%

Therefore, the ROA of Aquilera, Inc. is 12.08%

c. What is the company's Return on Equity (ROE)?

Total Assets = Total Debt + Total Equity

Therefore,

Total Equity = Total Assets - Total Debt

Total Equity = $14,600,000 - $5,400,000 = $9,200,000

ROE = Net income ÷ Total Equity

ROE = $1,764,000 ÷ $9,200,000 = 0.191739130434783 = 19.17%

Therefore, the ROE of Aquilera, Inc. is 19.17%

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3 years ago

Which of the following types of insurance allows individuals to keep a former employer's group coverage for a set period of time

nordsb [41]

Answer:

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2 years ago

Define the sentence : A marketer can realise their goals by manufacturing ,selling , improving and modifying the product .

andreyandreev [35.5K]

Answer:

Having a great marketing strategy in place is key to the success of any business. Without a marketing strategy, you lack focus. And without focus, you will, quite simply, fail to reach any of the goals and objectives that you have set. Failure to plan is planning to fail.

Marketing is not a standalone, one-off activity. It is made up of several different components that are necessary throughout each and every stage of a business’s endeavours - from long before a sale is even made, to long after. With so much going on, it is essential to have a strategy in place.

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2 years ago