Answer:
$10,900
Explanation:
The computation of net operating income (loss) for the month under variable costing is shown below:-
Sales = Selling price × Units sold
= $116 × 8,600
= $997,600
Variable cost = (Direct material + Direct labor + Variable manufacturing overhead + Variable selling and administrative expenses) × Units sold
= ($19 + $61 + $7 + $11) × 8,600
= $98 × 8,600
= $842,800
Contribution Margin = Sales - Variable cost
= $997,600 - $842,800
= $154,800
Fixed cost = Fixed manufacturing overhead + Fixed selling and administrative expense
= $135,000 + $8,900
= $143,900
Net operating income = Contribution Margin - Fixed cost
= $154,800 - $143,900
= $10,900
Therefore for computing the net operating income we simply applied the above formula.
Answer:
the Swiss Chalet had higher occupancy than its competitive set in 2019
Answer:
- $9,000
Explanation:
Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted
So, the cash effect would be
= - Increase in accounts receivable - increase in inventory - decrease in account payable
= - $1,000 - $5,000 - $3,000
= - $9,000
The accumulated depreciation is not a part of the working capital. Hence, ignored it
Answer:
C) No, because the project's rate of return is 16.45 percent
Explanation:
Year 0: CF = -132.,000
Year 1: CF = 97,000
Year 2: CF = 42,000
Year 3: CF = 28,000
using an excel spreadsheet we can calculate the project's IRR = 16.45%
the company established as a rule that it will only accept projects whose IRR is higher than 17%, but since this project's IRR is lower (16.45%), then it should be rejected.
