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kykrilka [37]
2 years ago
8

Orion company sells several products. information of average revenue and costs is as follows: selling price per unit $23 variabl

e costs per unit: direct material $4 direct manufacturing labor $1.70 manufacturing overhead $0.40 selling costs $2 annual fixed costs $100,000 the company sells 12,000 units at the end of the year. if direct labor and direct material costs increase by $1 each, contribution margin ________. select one:
a. increases by $24,000

b. increases by $12,000

c. decreases by $24,000

d. decreases by $12,000
Business
1 answer:
Ilia_Sergeevich [38]2 years ago
6 0
C. Decrease by $24,000. Start by multiplying the selling price by the number of units sold, or $23/unit by 12,000 units, to get $276,000, or revenue. Then find the total variable expense costs by summing each variable cost per unit, for $8.10/unit. Multiply this by 12,000 units then subtract the variable cost and the fixed cost of $100,000 from the revenue, to get $78,800, or gross income.

Next, find the new gross income by adding $2.00 to the variable cost per unit, to get $10.10/unit and multiplying by 12,000 units and subtracting this variable cost and the fixed cost from the revenue to get $54,800.

To find the contribution margin, subtract the original gross income from the new gross income to get a decrease of $24,000. 
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In what ways do people cope with the problem of scarcity (5 sentence)​
lianna [129]

There are three ways to cope up with the problem  of scarcity:

a. Economic growth.

b. Improvement of use  of available resources.

c. Reduction of wants.

Explanation: Economic growth mean the ability if an economy to produces products and services. Using the products wisely can improve the usage and  helps in saving the resources. Society can improve the use their existing or available resources in order to reduce the scarcity by: Efficiency in productivity, efficient allocation of resources, full employment  with minimum wastage and equity.



7 0
3 years ago
Goodwill is: Group of answer choices Amortized over the greater of its estimated life or forty years. Only recorded by the selle
Tems11 [23]

Explanation:

Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable. Goodwill does not include identifiable assets that are capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability regardless of whether the entity intends to do so. Goodwill also does not include contractual or other legal rights regardless of whether those are transferable or separable from the entity or other rights and obligations. Goodwill is also only acquired through an acquisition; it cannot be self-created. Examples of identifiable assets that are goodwill include a company’s brand name, customer relationships, artistic intangible assets, and any patents or proprietary technology. The goodwill amounts to the excess of the "purchase consideration" (the money paid to purchase the asset or business) over the net value of the assets minus liabilities. It is classified as an intangible asset on the balance sheet, since it can neither be seen nor touched. Under US GAAP and IFRS, goodwill is never amortized, because it is considered to have an indefinite useful life. Instead, management is responsible for valuing goodwill every year and to determine if an impairment is required. If the fair market value goes below historical cost (what goodwill was purchased for), an impairment must be recorded to bring it down to its fair market value. However, an increase in the fair market value would not be accounted for in the financial statements. Private companies in the United States, however, may elect to amortize goodwill over a period of ten years or less under an accounting alternative from the Private Company Council of the FASB.

8 0
2 years ago
Which of the following scenarios would be included in GDP? Pam buys a new 40-inch television at Walmart. Sandra is a waitress at
kkurt [141]

Answer:

A.  Pam buys a new 40-inch television at Walmart.

Explanation:

Gross Domestic Product is the sum monetary value of goods and services purchased in a country within a specific length of time. It can be calculated on an annual or quarterly basis. It helps economists in making decisions. The GDP has to be recorded so that it can be accounted for. The GDP is calculated based on income, expenditure, or production.

From the options given, only Pam has performed an activity that can be rightly included in GDP. This is because she purchased an item (expenditure) that would be recorded by the supermarket and eventually accounted for in the country's GDP.

3 0
3 years ago
Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service
defon

Answer:

July 1

No Entry

Sep 1

Dr Cash $2,000

Dr Accounts Receivable $400

Dr Cost of goods sold $1,100

Cr Inventory $1,100

Cr Unearned Service Revenue $554

Cr Sales Revenue $1,846

Oct 15

Dr Cash $400

Dr Unearned Service Revenue $554

Cr Service Revenue $554

Cr Accounts Receivable $400

Explanation:

Preparation of the journal entries for Geraths in 2020.

July 1

No Entry

Sep 1

Dr Cash $2,000

Dr Accounts Receivable $400

($2400-$2000)

Dr Cost of goods sold $1,100

Cr Inventory $1,100

Cr Unearned Service Revenue $554

($600/$600+$2000*$2400)

Cr Sales Revenue $1,846

($2,000/$600+$2000*$2400)

Oct 15

Dr Cash $400

($2400-$2000)

Dr Unearned Service Revenue $554

Cr Service Revenue $554

($600/$600+$2000*$2400)

Cr Accounts Receivable $400

($2400-$2000)

5 0
3 years ago
Delectable, Inc.'s unadjusted trial balance includes Accounts Receivable of $10,000; Allowance for Doubtful Accounts of $50 cred
cestrela7 [59]

Delectable's financial statements will show Allowance for Doubtful Accounts of $1,000 on balance sheet and Bad debts expense of $950 on Income statement

Here, we are to determine the records of bad debts expenses on Income statement and Allowance for doubtful accounts on Balance sheet.

Bad debts expense = Estimated bad debts - credit balance in allowance account

Bad debts expense = $1,000 - $50

Bad debts expense = $950

                            Journal Entry

General journal                                  Debit   Credit

Bad debts expense                            $950

Allowance for Doubtful accounts                   $950

(Bad debts expense recorded)

The allowance for doubtful account will be $1,000. ($950+$10) because the Allowance for Doubtful Accounts had $50 credit balance.

See similar solution here

<em>brainly.com/question/15201555</em>

3 0
2 years ago
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