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3 years ago

Which three items directly contribute to increasing profits?

Business

1 answer:

Julli [10]3 years ago

5 0

Answer:

advertising and marketing the product

selling at low prices

buying inventory in bulk, rather than individually

Explanation:

advertising and marketing the product: This area of the business boost the company profits as it is intended to comunicate the product benefits to the consumers.

providing just enough inventory to satisfy demand for the product this strategy permitts to manage the inventory not to buy more of what is needed and therefore reducing the expenses and creating profit.

buying inventory in bulk, rather than individually: This create profit as buying in bulk will decrease the final price of the inventory.

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Which of the following statements is FALSE?

Vlada [557]

Answer:

Total return equals earnings multiplied by the dividend payout rate.

Explanation:

Total return is calculated as appreciation of price plus dividend paid, divided by the original price of the stock.

The income gained on a stock is the increase in its value along with dividend that is paid out. This is compared to the original price (denominator) to determine how much returns is realised on the stock.

Mathematically

Returns= {(New price- Old price) + Dividend} ÷ Old price

So the statement total return equals earnings multiplied by the dividend payout rate is false

5 0

3 years ago

Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the follo

sdas [7]

Answer:

Rustafson Corporation

1. Computation of the activity rate for each activity cost pool:

Activity Cost Pool Activity Rate

Labor-related $6.50 per DLH

Machine-related $0.25 per MH

Machine setups $42 per setup

Production orders $36 per order

Product testing $24 per test

Packaging $15 per package

General factory $13.60 per DLH

2. Computation of the predetermined overhead rate:

Predetermined overhead rate = Total overhead divided by total direct labor hours

= $358,800/8,000

= $44.85

Explanation:

a) Data and Calculations:

Estimated Overhead Cost Expected Activity Activity Rate

Labor-related $ 52,000 8,000 direct labor-hours $6.50 (52,000/8,000)

Machine-related $ 15,000 20,000 machine-hours $0.25 ($15,000/20,000)

Machine setups $ 42,000 1,000 setups $42 ($42,000/1,000)

Production orders $ 18,000 500 orders $36 ($18,000/500)

Product testing $ 48,000 2,000 tests $24 ($48,000/2,000)

Packaging $ 75,000 5,000 packages $15 ($75,000/5,000)

General factory $ 108,800 8,000 direct labor-hours $13.60 ($108,800/8,000)

Total overhead = $358,800

Total direct labor hours = 8,000 DLH

Predetermined overhead rate = Total overhead divided by total direct labor hours

= $358,800/8,000

= $44.85

3 0

3 years ago

The edgartown company borrowed $480,000 on december 1, 2014. the note, which is due in 60 days, included interest at 8%. the com

irina [24]

The total interest due at the end of two months is computed by $480,000 * 0.08 * 2/12 = $6400

As the notes payable charge interest each month interest of $6400/2 = $3200 needs to be accrued. So the adjusting entry to be recorded is:

debit to interest expense 3200
credit to interest payable 3200

6 0

3 years ago

A business is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15 per u

rjkz [21]

Answer:

a. $ 90,000 cost decrease

Explanation:

The computation in the change in the amount of differential cost is shown below:

= (Unit cost by ignoring the fixed cost) - (unit cost to manufacturing the purchase cost) × number of units purchased

= ($12 - $15) × 30,000 units

= $3 × 30,000 units

= $90,000 decrease

And the other information which is given in the question is not relevant. Hence, ignored it

7 0

4 years ago

Daniel, age 38, is single and has the following income and expenses in 2016.

JulsSmile [24]

Answer: See Explanation

Explanation:

A. Calculate Daniels AGI

To calculate Daniel's AGI, we have to get his gross income first which will be:

Salary income + Net rent + Dividend income

= $60,000 + $6000 + $3500

= $69500

His deductions FOR AGI will be calculated as:

Alimony paid = $12,000

Contribution to traditional IRA = $5,000

Loss on sale of real estate = $2,000 Deduction for AGI = ($19,000)

Adjusted gross income will now be:

= $69500 - $19000

= $50,500

b. Should Daniel itemize his deductions from AGI or take the standard deduction? Explain.

The itemized deductions include:

Mortgage interest on residence = $4,900

Add: Property tax on the residence = $1,200

Add: Contribution to United church = $2,100

Add: State income tax = $300

Total itemized deductions = $ 8,500

Since the total itemized deductions is $8,500 and the deduction for AGI is $19000, he should therefore itemize his deductions as it is cheaper.

8 0

3 years ago