Answer:
a) net income will increase
Explanation:
The business must record the Account Receivable (Debit – Asset increased) against de income for the Revenue (Credit – Equity increased). Then will record the loss for the Cost of Sold Goods (Debit – Equity decreased) against the exit of the sold goods (Credit – Asset – decreased). As the income (Revenue) will be larger than the loss (Cost of Sold Goods), the Net Income will be increased.
Investors prefer stock dividends over cash dividends if they are seeking short-term liquidity.
<h3>
What is stock dividend?</h3>
An additional share of firm stock is given to the holders of common stock through a stock dividend. According to each shareholder's ownership stake in the firm, these dividends are dispersed equally to each. The share of their ownership in the corporation is maintained by such distributions. The dividend given to holders of common stock from the company's profits is known as a common stock dividend. The payout comes in the form of cash or shares, just like regular dividends. Particularly when the payout is a cash distribution that is effectively a liquidation, the law may be able to control the common stock dividend's size. These financial dividends could be given with the intention of deceiving creditors.
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Answer:
The variable cost per unit is $25.20
Total Fixed Cost is $35380
Explanation:
a.
The high-low method is used to separate mixed cost and give the variable component per unit in the mixed cost.
We take the highest and lowest cost and related activity level.
The Variable cost per unit = (100900 - 63100) / (2600 - 1100)
VC per unit = $25.20
b.
The total fixed cost is,
Total Cost at 1100 units = 63100
Variable cost at 1100 units = 25.20 * 1100 = 27720
Total fixed cost = 63100 - 27720 = $35380
Answer:
C
Explanation:
When a manager chooses to produce a quantity where marginal revenue exceeds marginal cost, the company is not earning all the profit that it can.
Answer: c) between Qa and Qb
Explanation:
From the exhibit, the lowest cost will be recorded when output is between Qa and Qb because these points represent the lowest costs per unit for Curves A and C and the lowest points where output can be produced. Output being produced at costs lower than this is therefore the lowest for the medium plant.
