Answer:
increase by $11,000
Explanation:
The computation of net operating income is shown below:-
Revenue = Sales per unit × Sales price per unit
= 3,000 × $70
= $210,000
Less variable costs = Sales per unit × Variable cost per unit
= 3,000 × $50
= $150,000
Fixed costs = $25,000
Net income = Revenue - Less variable costs - Fixed costs
= $210,000 - $150,000 - $25,000
= $35,000
Contribution margin per units = $70 - $50
= $20
Increase by 10%, it will be
$20 × (1 + 0.1)
= $22
If it decrease by 20%
= $25,000 × (1 - 0.20)
= $20,000
Net income = $3,000 × 22 - 20,000
= 46,000
So it was 35,000, with the changes it is 46,000. That increase by $11,000
The criteria would a private, nonprofit university follow in determining whether to recognize donated services revenue both a and b.
What is revenue?
Revenue is the cash that a firm generates via its operations. Depending on the accounting technique used, there are several ways to compute revenue. Sales made on credit will be included as revenue for products or services provided to the client under accrual accounting. Revenue may be recognized in accordance with certain standards even though payment has not yet been made.
The cash flow statement must be examined in order to determine how well a business collects debts. Contrarily, cash accounting only counts sales as income when money has been exchanged. A "receipt" is a payment made to a business; receipts can exist without income.
To learn more about revenue
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Solution :
Given :
Coupon rate for Bond J = 3%
Coupon rate for Bond K = 9%
YTM = 6 %
Therefore,
The current price for Bond J = $ 718.54 =PV(6%/2,13x2,30/2,1000)x -1
The current price for Bond K = $ 1281.46 =PV(6%/2,13x2,90/2,1000)x -1
If the interest rate by 2%,
Bond J = $ 583.42 = -18.80% (change in bond price)
Bond K = $ 1083.32 = -15.46% (change in bond price)
The best answer choice would be "B". This gives the main idea of what your debate would be about. It is also clear, and not biased or opinionated.
I hope this helps!
~cupcake