Answer:
a. Traditional Income Statement
Sales ($125 x 140) $17,500
Cost of Sales ($60 x 140) <u>($8,400)</u>
Gross Profit $9,100
Salaries ($1,300)
Rent ($1,000)
Sales Commission ($17,500 x 5%) <u>($875) </u>
Net income <u>$5,925</u>
b. Contribution Margin Income Statement
Sales ($125 x 140) $17,500
Less: variable Costs
Cost of Sales ($60 x 140) ($8,400)
Sales Commission ($17,500 x 5%) <u>($875) </u>
Contribution Margin $8,225
Less: Fixed Costs
Salaries ($1,300)
Rent <u>($1,000)</u>
Net income <u>$5,925</u>
Explanation:
a.
Traditional Income statement calculates the gross profit after deducting the cost of goods sold from the revenue. After that it deduct all the operating expenses to calculate the Net Income.
b.
Contribution margin income statement consider all the variable expenses as cost of product cost and calculates the contribution margin, after that the fixed costs are deducted calculate the net income.
Answer:
C
Explanation:
According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in economic growth rates make for large differences in real GDP per capita over several decades, assuming the same growth of population for each country.
For small countries ( less population and same growth of population over the years) even small growth rates makes a large change in real GDP per capita over the years.
Answer: $13.25
Explanation:
From the question, we are informed that an oral auction has bidders willing to pay $4, $6, $9, $12, $13, and $15 for an item.
Based on the above scenario, the winning bidder will pay a little more than $13 or $13.25. This is because the bidder with the highest pay is willing to pay $15 but since the next person is willing to pay $13, that means the next bidder will price it at an amount that is a little bit above $13 which is $13.25.
Answer:
roles of government
Explanation:
The government uses part of the taxes it collects to provide public goods such as goods as education, healthcare, and infrastructure. In mixed economies such as the US, the government's main role in the economy is to ensure fair competition among suppliers and protect consumers' and workers' rights.
The government has established several bodies and mandated them to carry out the regulatory functions. Different agencies regulate different trade sectors such as communication, drugs and medicines, weights and measures, employees' safety and health, etc.
Answer:
Gain $72,480
Explanation:
Calculation for the amount of gain or loss that Sheffield should recognize on the exchange
Using this formula
Gain/Loss= Book value – Fair value
Let plug in the formula
Gain/Loss= $978,480 – $906,000
Gain=$72,480
Therefore the amount of gain or loss that Sheffield should recognize on the exchange will be $72,480
