Answer: not affecting the manager's bonus
Explanation:
Under Variable costing, fixed manufacturing overhead is not charged on inventories produced or not sold for the year which means that regardless of inventory level, the relevant inventory here when it comes to calculating operating profit is the one that was sold.
The manager's bonus will therefore not change as a result of higher inventory levels. Were this absorption costing where fixed overhead was charged to inventory that was not sold, the manager's bonus would increase because the higher inventory level would absorb more of the cost.
Answer:
Fixed costs= 1,100,000
Explanation:
Giving the following information:
During its most recent fiscal year, Dover, Inc. had total sales of $3,200,000. Contribution margin amounted to $1,500,000 and pretax income was $400,000.
We need to reverse engineer the income statement to determine the total fixed costs. We know that the pretax income is the difference between the total contribution margin and the fixed costs.
Pretax= total contribution margin - fixed costs
400,000= 1,500,000 - FC
Fixed costs= 1,500,000 - 400,000
Fixed costs= 1,100,000
Answer:
$9,097
Explanation:
Net cash flow from operating activities = + $47,042
Net cash flow from investing activities = - $21,831
Net cash flow from financing activities = - $28,397
Net cash flows for the period = - $3,186
Beginning cash account balance = $12,283
Net cash flows for the period = - $3,186
Ending cash balance = $9,097
Answer:
b.$296,500.
Explanation:
Calculation to determine what Greene should report as unamortized bond discount
First step is to calculate the discount amount
Discount Amount= ($5,000,000 × .09) - ($4,685,000 × .10)
Discount Amount= $18,500
Now let determine the unamortized bond discount
Unamortized bond discount=$315,000 - $18,500 Unamortized bond discount= $296,500
Therefore Greene should report unamortized bond discount of $296,500
