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3 years ago

14

Last year, Flash Company sold 15,000 units of its only product. If sales decreased by 17% in the current year, how will total va

riable cost and total fixed cost be affected

1 answer:

erik [133]3 years ago

7 0

Answer:

Total Variable Cost- Decreases

Total Fixed Cost- Remains Constant

Explanation:

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At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts:

kvv77 [185]

Answer:

Cash Accounts receivable

debit credit debit credit

42,000 25,000

c. 140,000 a. 185,000

d. 120,000 <u>c. 140,000</u>

<u>e. 31,400 </u> 70,000

30,600

Service revenue Accounts payable

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a. 185,000 8,400

<u>185,000 </u> b. 45,800

0 0 <u>e. 31,400 </u>

22,800

Common stock Retained earnings

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<u> 24,000</u> 34,600

24,000 f. 10,000

<u> 19,200</u>

43,800

Operating expenses Salaries expenses

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b. 45,800 d. 120,000

<u> 45,800</u> <u> 120,000</u>

0 0 0 0

in order to determine the balance of the retained earnings account at the end of the year, we must first close all the temporary accounts:

Dr Service revenue 185,000

Cr Income summary 185,000

Dr Income summary 165,800

Cr Operating expenses 45,800

Cr Salaries expense 120,000

Dr Income summary 19,200

Cr Retained earnings 19,200

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3 years ago

Organizations created to collect and distribute contributions to political campaigns are referred to as

tangare [24]

These organizations are called Political Action Committees.

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3 years ago

Garrett Company provided the following information:

Shalnov [3]

Answer:

Correct option is C

<u>Overall operating income will decrease by $25,000.</u>

Explanation:

Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3

Sum of sales ratio = 2+3 = 5

Common fixed cost:

Product 1 = 2/5×46,000 = $18,400

Product 2 = 3/5×46,000 = $27,600

Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000

Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)

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3 years ago

After segmenting and defining their target markets, what should retailers do next?

DIA [1.3K]

After the segmenting and defining their target markets, the next step that the retailers should take into consideration is the type of goods that they are going to sell. This answers the question, "What?" For example, being located near the schools, their target market are the students and they should also consider what type of goods are the students mostly in need of.

4 0

3 years ago

Read 2 more answers

(c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mar

AysviL [449]

Answer:

Customer and Product Margin under Activity-based Costing and Traditional Costing

True Statements:

1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.

2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.

Explanation:

Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.

Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.

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3 years ago