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KonstantinChe [14]
3 years ago
15

Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single p

roduct.
Sales (3,800 units) $ 95,000
Variable expenses 38,000
Contribution margin 57,000
Fixed expenses 43,600
Net operating income $ 13,400
If the company sells 3,900 units, its total contribution margin should be closest to:

a. $13,753
b. $57,000
c. $58,500
d. $59,500
Business
1 answer:
Phantasy [73]3 years ago
7 0

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Sales (3,800 units) $ 95,000

Variable expenses 38,000

First, we need to calculate the unitary selling price and unitary variable cost.

Selling price= 95,000/3,800= $25

Unitary variable cost= 38,000/3,800= $10

Now, we can calculate the total contribution margin for 3,900 units:

Sales= 25*3,900= 97,500

Variable cost= 10*3,900= (39,000)

Contribution margin= 58,500

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Answer:

The correct answer is option d.

Explanation:

An increase in the market demand will cause the market demand curve to move to the right. This rightward shift in the demand curve will lead to an increase in the market price.

This increase in market price will cause the individual demand curves to move upwards. As the price increases, the profits earned by the firms will increase as well.

Profit to a firm is the difference between its total revenue and total cost, as the price increases, revenue will increase and cost will remain the same. This will cause profits to increase.

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3 years ago
Capricorn Creative Inc., a U.S.-based advertising firm, was the first in the advertising industry to identify the growth potenti
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Answer:

The correct answer is option A ,first mover advantage.

Explanation:

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This is a form of diversification, as putting one's eggs in one basket is not a sustainable way to grow the business in the long-term.

Even though there are risks involved in been a first mover, the benefits sometimes outweigh the risks.

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2 years ago
Dwyer Company reported the following results for the year ended December 31, 2007, its first year of operations: 2007 Income (pe
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Answer: $315,000 deferred tax asset

Explanation:

The amount that Dwyer should record as a net deferred tax asset or liability for the year ended December 31, 2007 will be calculated thus:

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= $900000 × 35/100

= $900000 × 0.35

= $315000.

Therefore, the answer is $315,000 deferred tax asset

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2 years ago
Diminishing marginal product suggests that the marginal A. cost of an extra worker is unchanged. B. cost of an extra worker is l
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Answer:

The correct answer is letter "D": product of an extra worker is less than the previous worker's marginal product.

Explanation:

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In taking a physical inventory at the end of Year 1, Grant Company forgot to count certain units and understated ending inventor
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Answer:

a. Overstates Year 1 cost of goods sold.

b. Understates Year 1 net income

c. Understates Year 2 cost of goods sold

Explanation:

a. The formula for Calculating the Cost of Goods sold is;

<em>Cost of Goods Sold = Opening inventory + Purchases - Closing inventory.</em>

If the closing inventory is understated, it will reduced the amount being subtracted from Purchases and Opening inventory which would means that Cost of Goods sold will be overstated.

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c. Going by the formula in <em>a;</em>

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In Year 2, the understated Year 1 closing stock will become the understated Year 2 Opening stock. With the opening stock understated, the Cost of goods will be understated as well because Opening stock is meant to increase Cost of goods sold as the formula shows. If it is understated, the amount that it will add will be understated as well.

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