Answer: Option A
Explanation: In simple words, backward induction refers to the process under which an individual starts analyzing a performance from the end results and go backward to the steps to determine where actually the actions went wrong.
This technique is generally used for analyzing complex subjects which requires high technology or knowledge. It helps the individuals to determine what actions should be rectified in future so that same problems would not occur again.
In the given case, Elly is willing to analyze the whole subject by starting right from the results. Hence we can conclude that she is using backward induction.
Answer:
$2.51
Explanation:
Gena Manufacturing Company calculation for contribution margin unit
Using this formula
Fixed cost + Tax profit/Estimated sales units
Let plug in the formula
Where:
Fixed cost =$259,000
Tax profit=$126,034
Estimated sales units=153,400
Hence:
(259,000 + 126,034) / 153,400
=$385,034/153,400
= $2.51
Therefore the contribution margin that is required to attain the profit target will be $2.51
Answer:
C.Accounting Identity is: Assets equivalentLiabilities + Owners' Equity.
Explanation:
In accounting identity all variables must balance, if they do not balance according to the equation then there must be an error in formulation, measurement or calculation.
The basic assumption in accounting identity is that the balance sheet must balance. That is assets must be equal to a sum of liabilities and owner's equity.
Asset= Liabilities+ Owners Equity.
This relationship is based on the convention of double entry, for every debit there is an equal credit.
