<span>Increased Contribution Margin = $40,000 x 70%, or 28,000.
New ad campaign costs $22,000, so the net Income increase will be the difference, $6,000</span>
Answer:
$11,671.73
Explanation:
The computation of the bank statement dated October 31,2015 balance is
Ending balance $21,335.83
Less: Outstanding checks -$9,669.69
Add: Interest received $30.59
Less: Service charged -$25
Reported balance $11,671.73
We simply deducted the outstanding checks and service charged and the rest items would be added to the ending balance so that the reported balance could come
Answer:
Wilson Towing Service
Income Statement
For the month ending June 30, 2016
Service revenue $12,500
Salaries expense ($2,500)
<u>Rent expense ($500)</u>
Operating profit $9,500
The income statement tells us how much profit/loss did a business make during a certain period of time. In this case, the operating profit was $9,500. In order to calculate net income we would need to subtract taxes but we are not given the tax rate or the taxes due.
Answer:
Number of utils that will be received from the purchase is 6.667 utils.
Explanation:
At Optimum:
Pa / Pb = MUa / MUb
Where;
Pa = Price of the baseball game = 15
Pb = Price of the movie ticket = 10
Now,
15/10 = 10/MUb
1.5 = 10/MUb
MUb = 6.667 utils
Thus, the number of utils that will be received from the purchase is 6.667 utils.
Answer:
$62,500
Explanation:
As we know that cash flow statement records the cash inflow and cash outflow and ignored all other transactions which are not made in cash
Since in the question it is given that $62,500 is cash collected from account receivable and the same is to be shown in the operating activities in a positive sign that indicates an inflow of cash
