Variable costs for Pool Company account for 36% of sales. Pool is thinking about launching a $20,000 advertising campaign. The company's operating income should rise by $31,200 if sales rise by $80,000.
What is advertising?
To draw attention to a product as well as service, advertising practises and strategies are used. The goal of advertising is to draw attention to your good or service so that people will buy it. Although there are numerous other uses for advertising, it is typically used to promote a particular good that really is currently on sale. In contrast to public relations, advertising involves a message that is paid for and controlled by the advertiser. Since the message is not personalized—that is, not addressed to a specific person—it differs from personal selling.
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Answer: The correct answers are "moderate deductibles and copayments" "one-third less in".
Explanation: One prominent U.S. study found that when people face <u>moderate deductibles and copayments</u> for their healt insurance, they consume about <u>one-third less in</u> medical care than people who have complete insurance.
This can be explained because it is because deductibles and copayments reduce moral hazard
Answer:
A.$200,000
B.Dr Loss on impairment $30,000
Cr Goodwill $30,000
Explanation:
(a) Computation of the amount of goodwill acquired by Vinson
Purchase price$900,000
Fair value of net assets $700,000
(Fair value of assets $950,000-
Fair value of liabilities $250,000)
Value assigned to goodwill $200,000
($900,000-$700,000)
(b) Preparation of Vinson’s journal entry to record impairment of goodwill.
Based on the information given we were told
the fair value of Carley is the amount of $720,000 while the implied fair value of goodwill is the amount of $170,000 and we were also told that carrying value of Carley’s net assets as well include the goodwill which is the amount of $750,000 which means that their is loss on impairment because the fair value amount is lower than carrying value which means that the journal entry to record impairment of goodwil will be ;
Dr Loss on impairment $30,000
($200,000 − $170,000)
Cr Goodwill $30,000
Answer:
d. Actual revenue is higher than budgeted revenue.
Explanation:
When the Actual income/revenue/benefit is higher than the budgeted/estimated income/revenue/benefit, the variance will be favorable.
When the Actual income/revenue/benefit is lower than the budgeted/estimated income/revenue/benefit, the variance will be unfavorable.
When the Actual expense/cost/loss is higher than the budgeted/estimated expense/cost/loss, the variance will be unfavorable.
When the Actual expense/cost/loss is lower than the budgeted/estimated expense/cost/loss, the variance will be favorable.
a.
As the actual cost incurred is higher than the cost estimated, then the variance in both costs is unfavorable.
b.
As the actual Income earned is lower than the income estimated, then the variance in both incomes is unfavorable.
c.
As the actual expense incurred is higher than the expense estimated, then the variance in both expenses is unfavorable.
d.
As the actual revenue incurred is higher than the revenue estimated, then the variance in both revenues is favorable.
e.
As the actual revenue earned is lower than the revenue estimated, then the variance in both revenues is unfavorable.
