Answer and Explanation:
The indications of the effect of each of following transactions are as follows
Particulars Assets Liabilities Stockholder equity
a. Borrowed
money from bank Increase Decrease No effect
b. Sold land for Cash increase No effect No effect
cash at Land decrease
a price equal
to its cost
c. Paid a liability Decrease Decrease No effect
d. Returned for credit Decrease Decrease No effect
some of the office
equipment previously
purchased on credit
but not yet paid for
e. Sold land for cash at Cash increase No effect Increase as Gain
a price in excess of cost Land decrease
f. Purchased a computer Increase Increase No effect
on credit
g. The owner invested
cash in the business Increase No effect Increase
h. Purchased office Increase in office No effect No effect
equipment for cash Decrease in cash
g. Collected an Increase in cash No effect No effect
account receivable Decrease in account
receivable
Based on the fixed costs of the Rocky Mountain Bottling Company, the contribution margin per unit is $0.40 per unit
<h3>How is the contribution margin found?</h3>
First, find the variable costs:
= 300,000 + (250,000 - 70,000)
= $480,000
The contribution margin per unit is:
= (Sales - variable costs) / number of units
= (800,000 - 480,000) / 800,000
= $0.40 per unit
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The management style Infotech most likely is applying is theory Z.
This theory was proposed by Dr. William Ouchi, and it was based on the Japanese principles of management, thanks to the boom of Asian economy in the 1980s. By giving the employees a lot of incentives, as well as responsibility for their work, productivity and morale are increased.
