Answer:
Yes it does. Yes it does.
Answer:
Which product would result in the highest contribution margin - Product Beta
Explanation:
Here is a situation where production is limited by a particular resource - Labor Hours.
To determine which product to manufacture, Sam has to rank the Contribution per unit of the limiting factor - labor of Product Alpha and Product Beta
Contribution per limiting factor are already calculated as:
Product Alpha - $750 per unit of limited resource
Product Beta - $975 per unit of limited resource
The Product with Highest Contribution per limiting factor results in highest contribution margin and must be worked on first
Answer: Reseller
A reseller is an organization that sources a variety of products from various producers, aggregates them under one roof and sells them to end users. A reseller usually doesn’t produce or add value to the products themselves.
Staples is a reseller that stocks a variety of stationery under one roof. It was set up with an objective to make all kinds of office and stationery supplies easily available to the end users.
Answer:
$750,000
Explanation:
Computation of the balance of the Equity Investment account on the parent's pre-consolidation balance sheet
EQUITY INVESTMENT ACCOUNT
Purchase price $400,000
Add Net income $400,000
Less Dividends ( $50,000 )
Balance of equity $750,000
($400,000+$400,000-$50,000)
Therefore the balance of the Equity Investment account on the parent's pre-consolidation balance sheet assuming that the Goodwill asset has not declined in value subsequent to the date of acquisition will be $750,000
