Answer:
Effect on income= -$22,000 decrease
Explanation:
Giving the following information:
Contribution margin $30,000
Fixed expenses ($40,000)
Net operating loss ($10,000)
<u>If a product line provides a positive contribution margin, generally it is convenient to continue production, at least in the short term.</u>
<u></u>
Effect on income= avoidable fixed costs - contribution margin
Effect on income= 8,000 - 30,000
Effect on income= -$22,000 decrease
Answer: Go to Microsoft edge the new one and look it up
Explanation:
Answer:
D. none of these answer choices are correct.
Explanation:
The principle of revenue recognition occurs when the revenue is realized or earned either cash is received or not and it also serves the accounting accrual basis. Realizable also means that the buyer gets the product but the payment is made afterward.
In this, it does not depend on cash transactions.
Hence, the option D is correct
Answer:
Ricardo’s Theory of Comparative Advantage
Explanation:
Comparative advantage is the term used to define the ability of an individual, firm or country to produce a particular good or service at a lower opportunity cost than that if it’s competitors or trade partners. Opportunity cost is the benefit lost from the second best alternative.
When a country can produce a product more efficiently (i.e maximum output using minimum resources) than that of its trade partners, it is known as that it has absolute advantage in that product. India tends to have absolute advantage in both business processes outsourcing as well as producing agricultural commodities as it is mentioned that it can produce both of these more efficiently than the United States.
However, although it has absolute advantage in both, it is still less efficient in producing agricultural commodities when compared to business process outsourcing. In other words, if it attempts to produce agricultural commodities in-house, the benefit lost from the second best alternative: business process outsourcing is high. The opportunity cost is higher when it produces agricultural commodities than it is when it does business process outsourcing. Hence, due to the law of comparative advantage, it chooses to specialize in business process outsourcing and imports agricultural commodities.
Answer:
E. $25,000 unfavorable
Explanation:
The labor efficiency variance shall be calculated using the following formulas:
Labor efficiency variance=((Standard labor hours used to make the actual production
)- (Actual labor hours used to make the actual production))* standard rate per hour
Standard labor hours used to make the actual production=15,000
Actual labor hours used to make the actual production=17,500
standard rate per hour=$10 per hour
Labour efficiency variance=(15,000-17,500)*10
=25,000 unfavourable
So based on the above discussion, the answer shall be E. $25,000 unfavorable
