A law or set of laws are created to give a policy legal force

1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Ma

marishachu [46]

Answer:

1-a. Total Contribution margin is $210,000 and Net operating income is $28,000.

1-b. Degree of Operating Leverage = 7.50

2-a. The expected percentage increase in net operating income for next year is 150%.

2-b. Expected amount of Net Operating Income is $70,000.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and variable costs are $6 per game. Production of the game is entrusted to a printing contractor. Variable costs consist mostly of payments to this contractor.

Required:

1-a. Prepare a contribution format income statement for the game last year.

1-b. Compute the degree of operating leverage.

2. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption:

a. What is the expected percentage increase in net operating income for next year?

b. What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

Explanation of the answer is now provided as follows:

1-a. Prepare a contribution format income statement for the game last year.

The contribution format income statement for the game last year can be prepared as follows:

Magic Realm, Inc.

Contribution Income Statement

For Last Year

Details Total ($) Per Unit ($)

Sales 300,000 20

Variable cost (90,000) (6)

Contribution margin 210,000 14

Fixed expense (182,000)

Net operating income  28,000 

1-b. Compute the degree of operating leverage.

Degree of Operating Leverage = Contribution Margin / Operating Income = $210,000 / $28,000 = 7.50

2-a. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected percentage increase in net operating income for next year?

Since:

Degree of Operating Leverage = Percentage change in Operating Income / Percentage change in Sales

Substituting the relevant values, we have:

7.50 = Percentage change in Operating Income / 20%

Percentage change in Operating Income = 7.5 * 20% = 150%

Therefore, the expected percentage increase in net operating income for next year is 150%.

2-b. Management is confident that the company can sell 18,000 games next year (an increase of 3,000 games, or 20%, over last year). Given this assumption: What is the expected amount of net operating income for next year? (Do not prepare an income statement; use the degree of operating leverage to compute your answer.)

This can be calculated as follows:

Change in Net Operating Income = 150% * $28,000 = $42,000

Expected amount of Net Operating Income = Current Net Operating Income + Change in Net Operating Income = $28,000 + $42,000 = $70,000

6 0

3 years ago

From a vantage point very close to the track at a stock car race, you hear the sound emitted by a moving car. You detect a frequ

yuradex [85]

Answer:

The speed of the car is 67.77 m/s and it is moving away from the observer.

Explanation:

The apparent frequency is given as

$f' = f\dfrac{ [v - vo]}{ [v - vs]}$

Here

o is the observer

s is the source which is car

v is the speed of sound = 343 m/s

f = true frequency emitted by the car (when stationary)

f ' = 0.835 f

so

$f' = f\dfrac{ [v - vo]}{ [v - vs]}\\0.835 f= f\dfrac{ [v - vo]}{ [v - vs]}\\0.835 = \dfrac{ [343 - 0]}{ [343 - vs]}\\0.835=\frac{343}{343-x}\\x=-67.77 m/s$

The speed of the car is 67.77 m/s and it is moving away from the observer.

5 0

4 years ago

Consider the markets for head sets, smart phones, cellular telephone service, and cell phone applications. Assume the market for

Alex73 [517]

Answer:

a) Head sets - perfect competition

b) Smart phones - monopolistic competition

c) Cellular telephone service - oligopoly

d) Cell phone applications - monopolistic competition

Explanation:

The following definitions explain the categorisation of competition:

- Perfect competition is when many firms sell similar products, no firm or buyer has control of market price. The barriers to entry are low. This is characterised by headsets

- The market for smart phones is monopolistic competition because advertisement is used to create product differentiation with the aim of gaining better market control

- Oligopoly is characterised by few firms controlling the market and keeping each other from dominating the market. This is they type of competition for cellular telephone service.

- Monopolistic competition is one where many firms produce dirlfferentiated products that are not substitutes. This is shown in market for cell phone applications

6 0

3 years ago

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labour to produce its total output of 640 u

mart [117]

Answer:

Explanation:

1. To find the cost per unit of production, first we find the total cost. So we multiply the unit of each factor used times its cost.

capital: 2*$10=$20

raw materials: 5*$4=$20

labour: 8*$3=$24

Total cost: $20+$20+$24=$64

Then we divide the total cost over the total units produced:

Cost per unit: $64/640=$0,1 Answer is B

2. If the cost per unit of raw materials increases from $4 to 8$. Then the total cost of production will be:

capital: 2*$10=$20

raw materials: 5*$8=$40

labour: 8*$3=$24

Total cost: $20+$40+$24=$84

To find how much the cost per unit will rise, to find how much it rises

64$→100%

$84←x

x=($84*100%)/$64=131.2%

131.2%-100=31.2%. The answer is B

3. Because there is a change in raw materials, then there would be changes in the supply demand. In this case, the total cost and the cost per unit increased, then it is a negative shock to the supply demand. This is represented as a shift to the left. The answer is D

4 0

4 years ago

In a shuffleboard game, the puck slides on a horizontal floor before coming to complete stop. If the coefficient of kinetic fric

OLga [1]

Answer:

22.33 m

Explanation:

We are given;

Coefficient of kinetic friction between the puck and floor; μ = 0.5

initial speed of the puck; u = 14.8m/s

From Newton's equation of motion, we know that;

v² = u² + 2as

But since it decelerate to rest, the acceleration will be negative.

Thus;

v² = u² - 2as

Final velocity is zero, thus;

0 = u² - 2as

Thus, a = u²/2s

Where s is the distance covered before coming to rest.

Now, we know that formula for the frictional force is;

F = μmg

F/m = μg

We also know that F/m = a

Thus, a = μg

Thus:

u²/2s = μg

s = u²/(2μg)

s = 14.8²/(2 × 0.5 × 9.81)

s = 22.33 m

3 0

3 years ago