Answer:
Effect on income= -$22,000 decrease
Explanation:
Giving the following information:
Contribution margin $30,000
Fixed expenses ($40,000)
Net operating loss ($10,000)
<u>If a product line provides a positive contribution margin, generally it is convenient to continue production, at least in the short term.</u>
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Effect on income= avoidable fixed costs - contribution margin
Effect on income= 8,000 - 30,000
Effect on income= -$22,000 decrease
Answer: Cycle Billing
Explanation:
Cycle billing refers to a billing practice where the individual customer is billed on a certain schedule based on the day you started paying or the day the contract kicked in. For instance, your cellular network provider billing you on the same day every month.
This ensures that not all customers are billed on the same day which will reduce the workload at the practice which already has a busy schedule. Rather with customers being billed on different days, the workload decreases.
Also it will then be known for certain which dates one can expect payments as well as when statements will be handled.
Answer:
C 14.45
Explanation:
Return on equity = .084 ×(1 + .72) = .1445, or 14.45 percent
Answer:
194,112.8
Explanation:
The computation of Net Present Value is shown below:-
Net Present Value = Present value of cash inflows - Present value of Cash outflows
= -757,000 + 396,000 × PVAF (12%, 3 years)
= -757,000 + 396,000 × 2.4018
= -757,000 + 951,112.8
= LLC 194,112.8
= 194,112.8
Therefore for computing the net present value we simply applied the above formula.
The answer is A. $297.99
367.99-45-25=$297.99
Hope this helps.
