Answer:
<u>Favourable Changes:</u>
Sales
Gross Profit
Operating Income
Interest Expense
Net Income
<u>Unfavourable Changes:</u>
Cost Of Sales
Selling Expenses
General Expenses
Other Revenue
Income Taxes
Explanation:
Observe Movement from 2018 results to 2019 results
Erie Corp
Vertical Analysis of Income Statement
2019 2018
Sales 1,397 1,122
Less Cost Of Sales 935 814
Gross Profit 462 308
<u>Less Operating Expenses</u>
Selling Expenses 154 121
General Expenses 88 77
Operating Income 220 110
<u>Less Non- Operating Expenses</u>
Other Revenue 4 7
Interest Expense 2 9
Income Taxes 134 66
Net Income 88 42
The journal entries to record the March 4, 2023, transaction is: Debit Accounts receivable $5,500; Credit Allowance for doubtful accounts $5,500.
<h3>Journal entries</h3>
Carla Vista Co. Journal entries
March 4, 2023
Debit Accounts receivable $5,500
Credit Allowance for doubtful accounts $5,500
Debit Cash $5,500
Credit Accounts receivable $5,500
Therefore the journal entries to record the March 4, 2023, transaction is: Debit Accounts receivable $5,500; Credit Allowance for doubtful accounts $5,500.
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<u>Answer:
</u>
Yes, people who disagree about normative ethical theory can still reach an agreement on practical ethical questions in the business world.
<u>Explanation:
</u>
- Most individuals associated with any form of business have their own theories devised of ethical behavior.
- Even if some people choose to disagree with the normative ethical theory, they cannot ignore the practical ethical questions in the business world.
- Such people modify their own ways of tackling the problems regarding business ethics which prove effective sometimes and sometimes do not.
I would say the answer is D. I’m not 100% sure but that seems to make the most sense.
Answer:
Increases by $66,800.
Explanation:
Given that,
Direct materials = $ 200
Direct labor = 80
Manufacturing overhead (30% variable) = 150
Selling expenses (50% variable) = 50
Administrative expenses (10% variable) = 80
Total per unit = $560
If accept this offer,
Total cost:
= Material + Labor + Manufacturing overhead + Administrative
= $200 + $80 + (30% × 150) + (10% × 80)
= $200 + $80 + $45 + $8
= $333
Contribution margin per unit:
= Selling price - Variable cost
= $500 - $333
= $167
Increase in profits:
= Contribution margin per unit × Number of units offer to purchase
= $167 × 400 units
= $66,800