A company may focus on lost contribution margin or prepare comparative income statement when making a product line decision
<h3>What is income statement?</h3>
An income statement can be regarded as financial statement which helps to display company's income and expenditures.
It is a financial statement that shows you the company's income and expenditures. It also shows whether a company is making profit or loss.
Hence, when making a product line decision, a company may focus on lost contribution margin and avoidable fixed costs or prepare comparative income statement.
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Answer:
$150,150
Explanation:
Total fair value of all assets:
= Land + Building + Paddleboats
= $67,200 + $158,400 + $254,400
= $480,000
Building accounted for:
= Fair value of building ÷ Total fair value
= $158,400 ÷ $480,000
= 33%
Therefore, the building is 33% of the total fair value of assets.
Cost of acquisition of assets:
= Amount paid + Closing cost to buy out a competitor
= 450,000 + 5,000
= $455,000
Cost to be allocated to the building:
= Cost of acquisition of assets × Percent share in total fair value
= $455,000 × 33%
= $150,150
Answer:
degree of operating leverage= 4.742
Explanation:
Giving the following information:
Contribution margin 73,500
Net operating income $ 15,500
<u>To calculate the degree of operational leverage, we need to use the following formula:</u>
degree of operating leverage= Total contribution margin / operating income
degree of operating leverage= 73,500 / 15,500
degree of operating leverage= 4.742
I believe that it is b the cartel
Answer:
debit to work in process of $84,000
Explanation:
Preparation of The journal entry to record the accrual of these wages
The journal entry to record the accrual of these wages would include a: DEBIT TO WORK IN PROCESS of 84,000
Debit work in process $84,000
Credit to factory payroll $84,000
(To record the accrual of wages)
Therefore The journal entry to record the accrual of these wages would include a: debit to work in process of $84,000