Given that G<span>rid
inc. is an American firm based in Cleveland that designs and
manufactures tractors and agricultural equipment. Grid inc. granted the
right to an Italian firm, Neos ltd. to use its brand name, and patented
technology to manufacture tractors in Italy. In return, Neos ltd. made
an upfront payment and agreed to give a percentage of the revenues that
it would gain to grid inc.
In this example, Grid inc. uses </span><span>franchising</span>
Answer:
Effect on income= $60,000 decrease
Explanation:
Giving the following information:
Current contribution margin= 15,000*(20 - 14)
Current contribution margin= $90,000
The study shows that $70,000 of the $100,000 in fixed expenses charged to Product X1 would remain even if the product was discontinued.
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= avoidable fixed costs - total contribution margin
Effect on income= 30,000 - 90,000
Effect on income= $60,000 decrease
Answer:
Interest received is $5.020
Wages paid is $13,400
Explanation:
The task is compute cash for interest for Case A and cash paid as wages for Case B in the year:
Computation of cash for interest:
interest revenue $6,600
opening interest receivable $920
closing interest receivable ($2,500)
Cash received $5,020
The closing balance was deducted because it a part of interest revenue for current year whose cash inflow is yet to be received and the opening interest receivable was added because the related cash would have been received during year.
Wages expense $12,200
wages payable (opening balance) $5,400
wages payable (closing balance) ($4200)
wages paid $13,400
The $5,400 was wages owed last year paid this year and the $4,200 is the wages owed this year expected to paid next year.
Answer:
Just be your best self. I always greet by shaking hands, stating my name and asking them how they are. I told my teachers I am looking forward to the upcoming year. leaving a good impression is key! (I generally do not care what other students think of me, but you may be different.)