Answer:
b. Increase by $17,000
Explanation:
For computing the change in the operating income, first we have to determine the cost by make and buy options
Make options:
= Variable cost + fixed cost
= $70 + $60
= $130
Buy options:
= Outside supplier cost + fixed cost × remaining percentage
= $77 + $60 × 60%
= $77 + $36
= $113
So, the difference of cost would be
= $130 - $113
= $17
And, the operating income would be
= Number of units make in each year × cost difference
= 1,000 units × $17
= $17,000
Answer:
A <u>customs union</u> is an intermediate step in the transition from a free trade area to a common market.
Answer:
Part a
Debit : Accounts Receivable $18,000
Debit : Cost of Sales $10,800
Credit : Sales Revenue $18,000
Credit : Inventory $10,800
Part b
Debit : Cash $16,200
Debit : Discount allowed $1,800
Credit : Accounts Receivable $18,000
Part c
Debit : Accounts Receivable $600
Credit : Cash $600
Explanation:
The perpetual method calculates the cost of sales for each transaction made.
See the journals prepared as above
Answer:
The statement is: False.
Explanation:
Many people have the wrong idea that writing long paragraphs is better to provide a more professional look to a study or report. However, in business especially, the optimal rule to follow is to be short and concise. Managers need information that will help them make decisions. Thus, the data provided must give clear conclusions from where the decisions can be taken. Wordy reports seem unuseful for that purpose.
