Answer:
Fly-Buy-Nite (FBN) Engineering Company
Income Statement
Sales revenue 35,000
Less Expenses :
Administrative expenses 2,750
Sub-contracted services 15,000
Development expenses 900
Interest expense 200
Selling expenses 4,500 (23,350)
Net Income 11,650
Net Income before taxes is $11,650
Explanation:
The Income Statement shows operating results that is Profit or Loss resulting from trading operations of the company. Profit or Loss = Sales less Expenses.
Answer:
b. changes in the same direction and in direct proportion to changes in operation activity.
Explanation:
Variable costs are expenses that vary with changes in production level. A variable cost is attached to the production of a particular product or service. An example of variable cost is the raw material expense. As the production level rises, more raw materials will be needed for production.
The relationship between variable costs and output level is direct and proportional. An increase in output requires more materials and other consumables. As variable costs are associated with the production process, an increase or decrease in production level results in a similar or increase or decrease in variable costs.
<span>Breached.
Explanation: A contract is a legally binding agreement between two parties. Once an agreement is signed between two parties, both parties are subject to terms and conditions written in the agreement.
As in the above example, Flora agrees to sell harvesters grocery a minimum quantity of fresh fruits and vegetables every week for three months, that means Flora is subject to the agreement that she will sell that no matter what the future market price will be, whether it increases or decreases. As Flora decides not to deliver the agreed order, it is a violation of terms and conditions of the agreement/contract. So the contract is breached.</span>
The answer is Sullivan Principles. General Motors embraced what came to be named as Sullivan principles. This is name after Leon Sullivan which is also a member of GM's Board of Directors. Sullivan contended that it was morally right for GM to function in South Africa so long as two circumstances were satisfied. First, the company should not follow the apartheid laws in its own South African operations. Second, the firm should do all within its power to endorse the elimination of apartheid laws.
