Answer:
b. $127,200
Explanation:
Both sales and variable cost are dependent on the number of units sold.
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.
As such, the total fixed cost of the corporation not traceable to the individual divisions
= $168,500 + $48,800 - $90,100
= $127,200
Answer:
The statement is: True.
Explanation:
The Annual Rate of Return or Yearly Rate of Return is the amount earned over an investment within one year. It is typically represented as a percentage and takes into consideration capital appreciation and the payment of dividends. The formula to calculate the annual rate of return is the following:
Annual Rate of Return = (EYP - BYP)/BYP X 100%
Where:
EYP = End of year price
BYP = Beginning of year price
<u>Explanation:</u>
Given
Consumption = (10 x 30) = 300
Investment = (100 x 2) = 200
Government Spending = (500 x 1) =500
13. Total GDP for this economy = Consumption + Investment+ Government spending
=(10 x 30) + (100 x 2) + (500 x 1)
=$1000
14. Consumption % on GDP
= Consumption/ Total GDP x 100
=(300/1000) x 100
= 30%
15. Investment % in GDP
= Investment / Total GDP x 100
=(200/ 1000) x 100
=20%
16. Government spending % on GDP
=Government spending/ Total GDP x 100
=(500/1000) x 100
=50%
Answer:
Estimating un-collectible accounts expense improves the matching of revenues and expenses.
Explanation:
When uncollectibles are recorded through allowance method then, bad debts expense is provided, which reduces net income. But at the time of writing off only the allowance and accounts receivables account is affected and not the net income.
When direct method is used then also the net income gets reduced, as bad debt expense and accounts receivables is affected.
And as provided in first para, when estimating and creating the allowance for bad debts, it affects net income, and it also represents the true and fair view of expenses and income.
Thus, statement c is correct.
