Answer:
A. profit.
Explanation:
We know,
Net Income (profit) = Sales revenue - the cost of goods sold and operating expenses
Here,
The Ice Cream shop made $100,000 on sales revenue. However, the expenses of the shop include supplies and factory space, i.e., rent expense is $75,000.
Therefore, Net Income (profit) = $100,000 - $75,000 = $25,000
Since the sales revenue exceeds the expenses, the company gets a profit. So, <em>option A</em> is the answer.
Answer: The manager needs to prepare financial statements
Explanation:
Financial Statements are written reports prepared by a company's manager to show the business activities, financial performance and financial standing or position at any time which includes a balance sheet, income statements, statement of cash flows and sometimes, the owner's equity.
Financial analysts depend on financial data to weigh a company's performance and make real presumptions about its future in regards to the company's stock price.
A company's financial statement can be found in an An annual report which shows a company's trusted and audited financial data (which must have been audited by government or accountants, to ensure its accuracy for tax, or investing purposes.)
Therefore Financial statement is a compulsory step after which the source documents have been examined, recorded and posted.
They probably feel good about themselves.
Answer:
Effect on income= $550,000 increase
Explanation:
Giving the following information:
Variable costs per unit:
Manufacturing $ 50
Selling and administrative $ 20
Special offer= 5,500 units for $170.
To calculate the effect on income, we need to calculate the total contribution margin:
Total contribution margin= 5,500*(170 - 70)= $550,000
