Answer:
1a.
Magic Realm, Inc.,
Contribution format income statement
Per Unit Amount
Sales 62 2,207,200
Variable expenses 42 (1,495,200)
Contribution margin 20 712,000
Fixed expenses (623,000)
Net operating profit 89,000
1b.
Degree of operating leverage: 4
2. The expected percentage increase in net operating income for next year: 184%
Explanation:
1a. Please refer to the answer part
1b. Degree of operating leverage = Contribution margin / net operating profit = 712,000/89,000 = 8.
2.
Expected percentage increase in net operating income for next year = Expected percentage increase in sales next year x operating leverage = 23% x 8 = 184%
Answer:
A: is a key aspect of the activity - based costing model
Explanation:
Hopefully this helps!
Answer:
A. $21,100
Explanation:
net cash flow year 1 = {[savings year 1 - (depreciation expense year 1)] x (1 - tax rate)]} + depreciation expense year 1
cash flow year 1 = {[$25,000 - ($30,000 x 33.33)] x (1 - 26%)} + ($30,000 x 33.33) = [($25,000 - $10,000) x 0.74] + $10,000 = $11,100 + $10,000 = $21,100
Answer:
The entry to record the transfer of materials from the storeroom is
Debit Work in process $ 36,000
Debit Factory overhead control $ 6,000
Credit Material Account $ 42,000
The material is accounted in material stock account when purchase. Latter if material is used directly it is taken in work in process account. Indirect material is accounted in FOH account.
