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Anna007 [38]
3 years ago
5

Carver Packing Company reports total contribution margin of $80,960 and pretax net income of $25,300 for the current month. In t

he next month, the company expects sales volume to increase by 5%. The degree of operating leverage and the expected percent change in income, respectively, are:
Business
1 answer:
Pavel [41]3 years ago
8 0

Answer:

3.2 & 16%

Explanation:

Degree of operating leverage = Contribution margin / Pretax net income

Degree of operating leverage = $80,960 / $25,300

Degree of operating leverage = 3.2

Degree of operating leverage 3.2 means if sales (or contribution margin) increases by 1%, income increases by 3.2 %.

Thus, Expected % change in income = Increase in sales * degree of operating leverage

Expected % change in income = 5% * 3.2

Expected % change in income = 0.5 * 3.2

Expected % change in income = 0.16

Expected % change in income = 16%

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If a person wants to start a business but limit the amount of liability he is responsible for, a _____________ would be most app
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Other things being equal, a ________ supply of workers tends to put ________ pressure on real wages.
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The answer is, larger; downward.

  • Other things being equal, a larger supply of workers tends to put  downward pressure on real wages.

<h3>How do wage increases affect the demand for and supply of labor?</h3>
  • The quantity of work required will alter in response to changes in pay or salary.
  • Employers will want to hire fewer workers if the pay rate rises.
  • There will be a reduction in the amount of labor requested and an upward shift in the demand curve.

<h3>What causes wage increase?</h3>
  • There are several reasons why employers may decide to raise salaries.
  • An increase in the minimum wage is the most frequent justification for wage increases.
  • The minimum wage can be raised by both the federal and state governments.
  • Companies that manufacture consumer items are also renowned for giving their employees small pay raises.

<h3>How does wage increase affect supply?</h3>
  • The aggregate supply curve shifts inward when the money wage rate increases, which results in a decrease in supply at all price levels.
  • The aggregate supply curve shifts outward as the money wage rate declines, increasing the quantity supplied at any price level.

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8 0
2 years ago
Exercise 5-15B Record notes receivable and interest revenue (LO5-7) On March 1, Company A provides legal services to Company B r
Alex787 [66]

Answer:

March 1: Note acceptance

Debit Note receivable $9,100

Credit Accounts receivable $9,100

<em>(To record note receivable from Company B)</em>

Sept 1: Cash collection

Debit Cash $9,100

Credit Note receivable $9,100

<em>(To record cash collection of note receivable)</em>

Debit Cash $364

Credit Interest receivable $364

<em>(To record cash collection of interest receivable on note)</em>

Explanation:

Note is a promissory note with a written promise made by the borrower to the lender (payee) to pay a certain, definite sum at a specified date.

Interest revenue on the note is calculated as: Principal x Interest Rate x Time

The total interest revenue is $9,100 x 8%/12 x 6 months = $364.

Monthly interest revenue is therefore $364 / 6 months = $60.67.

<em>The 6 months is from March 1 to Sept. 1.</em>

On a monthly basis, Company A would accrue for the interest revenue as follows:

Debit Interest receivable $60.67

Credit Interest revenue $60.67

<em>(Interest accrual on notes receivable)</em>

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3 years ago
AllSpice Incorporated plans to do business with a company located in the Leone Republic, a common law country. The companies hav
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The contract must be very detailed and should include all the contingencies spelled out in it.

<u>Explanation:</u>

Contract is a document that is made between two or more than two parties who have come in to an agreement with each other over a particular thing. The contract might be a business contract that the parties make which should have the proportion of profit and liabilities of the business that is to be shared among the partners.

Since the profit and losses are to be shared between the business partners on the basis of this contract, the contract should have very detailed information in it and all the contingencies should be spelled out in it.

8 0
2 years ago
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