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elixir [45]
3 years ago
10

Infinity Clock Company prepared the following static budget for the​ year: Static Budget ​Units/Volume 5 comma 000 Per Unit Sale

s Revenue $ 7.00 $ 35 comma 000 Variable Costs 1.00 5 comma 000 Contribution Margin 30 comma 000 Fixed Costs 4 comma 000 Operating​ Income/(Loss) $ 26 comma 000 If a flexible budget is prepared at a volume of 6 comma 300 ​units, calculate the amount of operating income. The production level is within the relevant range. A. $ 33 comma 800 B. $ 6 comma 300 C. $ 4 comma 000 D. $ 26 comma 000
Business
1 answer:
aalyn [17]3 years ago
4 0

Answer:

a) Operating income - $33,800

Explanation:

<em>The flexible budget would be prepared for  a different activity level of 6,300 production units but using the assumptions of the fixed budget</em>

                                                                               $

Sales revenue - ($7× 6,300 units  )   :             44,100.00

Less Variable cost -      ($1 ×  6,300 units ) :      <u>( 6,300)</u>

Contribution                                                       37,800

Less Fixed costs                                                <u>(4,000)</u>

                                                                             <u>33,800</u>

<em>Note that the fixed costs of $4000 remains the same for both the static and flexible budgets. This is because the activity level of 6,300 units of the flexible budget remains within relevant range. So the fixed cost would not change.</em>

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jolli1 [7]

Answer:

Stay informed about products that you buy to be aware of product recalls.

Gather information about products and services before making a purchase to be aware of price, quality, and the product specifications.

Read instructions on products and use them as intended.

Take action and report faulty products, fraudulent activity, and any other violation of consumer rights.

Consider the impact of your purchases on others and choose products that do not harm the environment.

Insist on compensation if you are not satisfied with your purchase.

8 0
3 years ago
The public relations manager of an oil company explained what the company intended to do to tackle the threat to marine life cau
mars1129 [50]

Answer:

He is acting as a spokesperson.

Explanation:

According to Mintzberg, Spokesperson is the person who is responsible for representing company on a public forum and is not associated with management of companies core operation.

4 0
3 years ago
Ivanhoe Windows manufactures and sells custom storm windows for three-season porches. Ivanhoe also provides installation service
Anna71 [15]

Answer:

Ivanhoe Windows

a. Journal Entries:

September 1, 2020:

Debit Cash $1,920

Credit Sales Revenue $1,920

To record the sale of windows to Geraths.

Debit Cost of goods sold $1,120

Credit Inventory $1,120

To record the cost of goods sold.

October 15, 2020:

Debit Cash $450

Credit Installation Revenue $450

To record the completion of installation service.

b. Journal Entries:

September 1, 2020:

Debit Cash $1,920

Credit Sales Revenue $1,896

Credit Unearned Revenue $24

To record the sale of windows to Geraths.

Debit Cost of goods sold $1,120

Credit Inventory $1,120

To record the cost of goods sold.

October 15, 2020:

Debit Cash $450

Debit Unearned Revenue $24

Credit Installation Revenue $474

To record the completion of installation service.

c. If Geraths is unable to develop a reliable estimate for the fair value of the installation:

Journal Entries:

September 1, 2020:

Debit Cash $1,920

Credit Sales Revenue $1,920

To record the sale of windows to Geraths.

Debit Cost of goods sold $1,120

Credit Inventory $1,120

To record the cost of goods sold.

October 15, 2020:

Debit Cash $450

Credit Sales Revenue $450

To record the completion of installation.

Explanation:

a) Data and Calculations:

July 1, 2020, Contract Price = $2,370

Standalone selling price of window = $1,920

Cost of the window = $1,120

Standalone selling price of installation service = $590

Attributed selling price of installation service = $450 ($590 = $140)

b) Estimated standalone value of the installation = estimated cost + 20% on cost

= $400 + 20%  = $480 ($400 * 1.2)

Separate performance values:

Sale of window = $1,920   = $1,896 ($1,920/$2,400 * $2,370)

Installation =             480   =      474 ($480/$2,400 * $2,370)

Total =                 $2,400  = $2,370

c. If Ivanhoe Windows is unable to develop a reliable estimate for the fair value of the installation, both payments received will be attributed to the Sales Revenue without identifying separate performance values.

6 0
2 years ago
If consumer has rational, monotonic and convex preferences, which of the following is true concerning the substitution effect of
Zanzabum

Answer:

It will lead to an increase in consumption of good X only if X is a normal good ( D )

Explanation:

If consumer has rational, monotonic and convex preference the decrease in price of good X will lead to an increase in consumption of good X only if X is a Normal good .

This is because the demand for Normal goods increases with increase in consumers income. therefore <em>a decrease in price will automatically lead to an increase in demand because of the increase in the purchasing power of the consumer's income.</em>

5 0
2 years ago
Star Corp. had the following accounts and balances in its general ledger as of December 31:
Alex

Answer:

=$ 25,500

Explanation:

cash equivalents will be petty cash + cash at bank

= 500+20,000+5000

=$ 25,500

Cash or cash equivalent refers to assets held in the form of cash or can easily convert into cash in less than 90 days. Examples of cash include petty cash, cash in hand, cash in the bank, and debt securities whose maturity is within 90 days. Cash or cash equivalent appears at the top on the list of assets in a balance sheet.

Marketable debt securities are short-term to bond issued by a corporation and held by another company. They are listed as a current asset if they are to be sold within one year to long term investment if they are expected to last longer. Marketable equity securities are capital instruments. They are listed as current assets if they are to be liquidated in one year or long term investment if longer.

8 0
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