Answer:
Sales Revenues 26100
COGS <u> 5655</u>
gross profit 20445
rent expense 1600
depreciation expense 200
operating expense <u>2600</u>
net income 16045
Sales Revenues 26100
Variable Cost <u> 6305 </u>
Contribution margin 19795
rent expense 1600
depreciation expense 200
fixed operating expense<u> 1950 </u>
net income 16045
Explanation:
traditional:
COGS
$12 tub / 30 ice cream cones = $0.40
+ 0.25 ice cream cones
total per unit 0.65
8,700 x 0.65 = 5655
Gross profit: sales revenue less COGS
then, we subtract the rent expense, depreicaiton expense and operatign expenses to get net income.
contribution the variable cost will be subtracted from the sales revenues
that will include the 75% of the operating expenses
The difference between sales revenue and variable cost is called contribution margin.
D the lower the taxes(I searched it up)
Answer:
B. French wines will become more expensive in the United States.
Explanation:
Exchange rate is the rate at which one currency can be exchanged for another during international trade. The strength of a currency determines how much of the other countrie's goods it can purchase.
When the strength of a countrie's currency is high it will purchase more of the other countrie's goods. If however the currency is weak, it will take more to buy the other countrie's goods.
In this case if the dollar falls against the euro, it will take more dollars to buy French wine than before.
For example if a bottle of French wine was $500, after the fall the price may now be $800.
Answer:
False
Explanation:
It does not necessarily means that when a firm gets a normal rate of return, it earns economic profit also, as it depends on various factors:
- In the short run every firm aims to recover its variable cost, and in it's long term duration to recover its total cost, but it does not necessarily conclude that the return will attain the level of earning economic profit.
- Normal rate of return is based on competitive market, as an average rate of return on market, but if the investment is made from borrowed funds, it might be that the company is not able to pay the cost of borrowing in that case it is even after attaining the normal rate of return it will not earn economic profit.
True because coffee and other drinks can last up to hours of energy
