Net income serves as the beginning point for the indirect technique of preparing the operating activities section.
<h3>What does "net income" mean?</h3>
Net income is the amount of money left over after all costs, such as salaries and wages, the cost of commodities or raw materials, and taxes, have been paid. Net income is the amount that a person keeps after paying taxes, health insurance premiums, and retirement contributions.
<h3>How is net income demonstrated?</h3>
Operating income for the business was $23,000 after operating costs of $12,500. After deducting interest expense of $1,500 and adding interest income of $1,700, ABYZ arrived at a net income before taxes of $23,200.
<h3>What is net income post-tax?</h3>
A person's income after taxes and deductions is referred to as their net income.
learn more about net income here <u>brainly.com/question/15530787</u>
#SPJ4
In a perfectly competitive market bell computers will cause profits to increase by producing one more.
A hypothetical market system is referred to as perfect competition. Perfect competition offers a valuable model for illustrating how supply and demand influence pricing and behaviour in a market economy, despite perfect competition seldom occurring in actual markets.
One of the most efficiently operating markets is one with perfect competition, when a large number of buyers and suppliers cooperate perfectly. Sadly, it is a hypothetical event that does not occur in the real world. But in order to guarantee a fair price for all goods and services, markets should strive to be as similar to this type of market as feasible.
Learn more about perfectly competitive market here:
brainly.com/question/13961518
#SPJ4
Answer:
1. $50 and 40%
2. 177 units and $22,125
3. 473 units and 72.77%
Explanation:
Price = $125
Variable cost = $75
Fixed cost =$8,850
Contribution margin is the net of sales price and variable cost of the product. It is the cost available to recover the fixed cost and make profit afterward.
1. Contribution margin = Sales price - Variable cost = $125 - $75 = $50
Contribution margin ratio = Contribution margin / Sale price = $50 / $125 = 40%
Break-even is the level of sales at which business has no profit no loss situation.
2. Break-even point = Fixed cost / Contribution margin per unit = $8,850 / $50 = 177 units
Break-even in $ = 177 units x $125 = $22,125
Margin of safety is the level of sales at which the business is safe from making loss. Margin of safety measures the profit after the break-even point.
3. Margin of Safety = Total sales - Break-even point = 650 units - 177 units = 473 units
Margin of safety to sales = ( Margin of safety / Total sales ) = ( 473 units / 650 units ) x 100 = 72.77%
Answer:
Option C is correct
Explanation:
This means an increase in actual price would make quantity aggregate supply curve to shift to the right.