Answer: Rooney should accept as there is a chance to make a profit of $53,580
Explanation:
Rooney has the capacity to build the additional slabs so can do so without stopping other orders.
Revenue should Rooney accept project:
= 47 * 2,510
= $117,970
Cost should Rooney accept project:
= (870 * 47) + (500 * 47)
= $64,390
Total profit:
= 117,970 - 64,390
= $53,580
<em>Rooney should accept as there is a chance to make a profit of $53,580</em>
Answer:
Yes, common and operational expenses.
The effect on financial statement would be dynamic, as some figures would fluctuate based on volume
Explanation:
A flexible budget is very much adjustable based on the level of production activity. Hence this will also reflect on the financial statement, if management takes this approach
Answer:
Cost Nature Cost driver
Rent Fixed Area per ft
Utilities Variable Units used per activity
Car Payment Variable Km. run
Cell phone bill Variable Charges peer min of usage
Gasoline Variable Usage per in ltr.
Cable Bill Fixed Number of connected devices
Groceries Variable Usage per day
Dining Out Variable Number of days dined out
Answer:
a. The common stockholders.
Explanation:
A company's retained earnings have a financing cost associated with them because retained earnings belong to the common stockholders.
Retained earnings can be defined as the accumulated profits or net income generated by an organization but are not distributed or given as dividends to the stockholders, rather are reinvested in to the business.
Generally, retained earnings are used to pay off debts, used for capital expenditures and working capitals.
Retained earnings represents the total stockholders' equity reinvested back into the company.
Answer:
First Big Bank can file a lawsuit.
Explanation:
Debbie took the loan when he has the job and agreed to refund the loan or borrowed money. Unfortunate circumstances lead to the loss of his job resulting in the stoppage of loan repayment. Since Debbie did not make any crime so it will not come under criminal law but the bank can file a lawsuit against Debbie and he will be liable to pay a fine and penalties.
