Answer:
Effect on income= -$22,000 decrease
Explanation:
Giving the following information:
Contribution margin $30,000
Fixed expenses ($40,000)
Net operating loss ($10,000)
<u>If a product line provides a positive contribution margin, generally it is convenient to continue production, at least in the short term.</u>
<u></u>
Effect on income= avoidable fixed costs - contribution margin
Effect on income= 8,000 - 30,000
Effect on income= -$22,000 decrease
Answer:
D) Catering to entrepreneurs
Explanation:
Catering to entrepreneurship is a business practice carried out by corporations that generally seek to purchase start ups for the new technologies that they developed (including patents) rather than for their business model or profits. E.g. [email protected] paid $2 billion for Oculus, and Google acquired Nest for $3.2 billion. None of these companies actually made any money, but the innovations that they develop may generate a lot of money if they are backed up by a major player.
In this case, catering for entrepreneurs is a similar concept applied within an organization that tries to foster innovations.
Answer:
C. Employees value the rewards or incentives that are being offered
Explanation:
Let's see the different options for answer...
<u>A. Performance measures are to be linked to the individual's goals</u>
No. Even if the performance measures should be linked to the individual's goals, just the mere existence of such KPI is not sufficient to motivate employees. There has to be some performance reward attached to it.
<u>B. Employees are given very broad performance goals</u>
No. To get a good performance and motivate employees, they must be given clear goals and objectives.
<u>C. Employees value the rewards or incentives that are being offered</u>
Yes. Even if you have good performance measurements, with realistic goals, the employees won't be motivated to reach those goals if the reward doesn't worth the effort.
<u>D. Employees are given limited resources to meet their goals</u>
No. They won't be motivated if they don't think they have the means to achieve those goals.
Answer:
To support a high stock price, to support a bond or stock offering, or to increase the company's stock price.
Explanation:
The motivation to publish fraudulent financial statements varies depending on the situation. A common theme in many cases of fraud is the attempt to improve the reported financial information to maintain high stock prices, support bonds or stock quotes, or raise a company's stock price. In many companies that published fraudulent financial statements, senior executives held significant stocks or stock options, and lowering the price of the stock would significantly reduce personal net worth or make worthless options. As a result, senior management had to maintain the high share price and therefore needed high returns to maintain the high share price. Investors value reports that increase profits each year. Indeed, the decline in earnings can significantly lower a company's stock price. Sometimes fraudulent financial reports cause line managers to exaggerate the results to meet the company or other expectations. Sometimes the cost of failure in corporate governance is high, and when it comes to choosing between failure and fraud, some managers quickly turn to fraud.
Answer:
$135 Unfavorable
Explanation:
The computation of total variance is shown below:-
For computing the total variance first we need to find out the actual price which is below:-
Actual price = Total cost ÷ Actual quantity
= $18,135 ÷ 3,100
= $5.85 pound
Now,
Total variance = Standard quantity × Standard price - Actual quantity × Actual price
= (($2,000 × 1.5) × $6) - 3,100 × $5.85
= 3,000 × $6 - 3,100 × $5.85
= $18,000 - $18135
= $135 Unfavorable.
