Fiscal policy is the tax and spending decisions made by the president and

Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,000.

UNO [17]

Answer:

b. 13.9%

Explanation:

sales 7,000,000

variable cost <u> (3,000,000) </u>

contribution 4,000,000

fixed cost (1,500,000)

interest <u> (480,000) </u>

EBT 2,020,000

tax expense (707,000)

net income 1,313,000

contribution margin 4,000,000 / 7,000,000 = 4/7

if sales increase by 7%:

7,000,000 x 0.07 x 4/7 x (1- 0.35) = 182,000

income after increase in sales: 1,313,000 + 182,000 = 1,495,000

increase in earnings: 1,495,000 / 1,313,000 - 1 = 0.138613861 = 13.9%

3 0

3 years ago

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil f

Nady [450]

Answer:

1. The margin for Alyeska Services Company: 27.37%

2. The turnover for Alyeska Services Company= 49.45%

3. The return on investment (ROI) for Alyeska Services Company = 13.54%

Explanation:

Please find the below for detailed explanations and calculations:

1. The margin for Alyeska Services Company = Net operating income / Sales = 4,900,000/17,900,000 = 27,37%;

2. The turnover for Alyeska Services Company= Sales / Average operating income = 17,900,000/36,200,000 = 49.45%;

3. The return on investment (ROI) for Alyeska Services Company = Net operating income/Average operating income= 4,900,000/36,200,000= 13.54%

7 0

3 years ago

Required: Journal entry

lisabon 2012 [21]

Answer:

If a cheque was being issued to settle a account payable, the relevant entry is to debit the accounts payable account to show that the debt is being reduced. You will then credit the cash account to show that cash is being reduced as well because it was used to pay off the debt.

Date Account Title Debit Credit

XX-XX-XXXX Accounts Payable - Saurya Stores Rs. 39,000

Cash Rs. 39,000

7 0

3 years ago

Assess how the leadership team you designate will affect organizational performance in the short-term and the long-term.

My name is Ann [436]

Explanation:

A company's leadership team is an essential part of the company's strategic development and decision-making process.

Therefore, the leadership team will directly influence organizational performance in the short and long term, in the sense that this team will be responsible for the strategic planning that will contemplate the long term in the organization and help it to reach its goals and objectives.

The decision-making process, on the other hand, will impact the company in the short term and will be essential for the decisions made to be beneficial for the improvement of organizational processes and the achievement of competitive and financial advantages.

8 0

3 years ago

The variable overhead rate is $9.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,140 per m

Pani-rosa [81]

Answer:

Cash= 87,910 + 9.3*direct labor hour

Explanation:

Giving the following information:

The variable overhead rate is $9.30 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $106,140 per month, which includes depreciation of $18,230.

Cash= (106,140 - 18,230) + 9.3*direct labor hour

Cash= 87,910 + 9.3*direct labor hour

8 0

4 years ago