When Wal-Mart started purchasing from the manufactures of products directly in 1980 it helped to grow the business into a major success. The three activities that helped build the success was more cost effective inventory management, distribution practices by having their own fleet of trucks, and supply chain efficiency which helped to save time.
Let us calculate net profit on each unit; after the changes, we have that the company sells 1300 units and eah unit has a profit margin of 175-100=75$.We also have that the fixed costs are in total 96000-20000=76000$. Consider the profit function P(x) that depends on the number x of units sold. P(x)=75*x-76000. Substituting x=1300, we have that P(x)= 97500-76000=21.500$. This is the Net operating Income after the changes.
Answer:
C. Management
Explanation:
The Management of an organisation is primarily responsible for preparing the financial statements for that organisations to be consumed by relevant parties including the shareholders, the government and the society at large.
It is the responsibility of the Auditor to ensure that the prepared financial statement shows a true and fair state of the business for the period presented.
A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event. A contingent liability is expected to be reported in the financial statement if it is likely to occur and can be reliably estimated.
Since Management is responsible for the preparation of the statement, then the inclusion of contingent liability is its responsibility.
Answer:
C)Many firms operate in the market and produce similar, but differentiated products.
Explanation:
A monopolistic market structure has many firms competing for the same customers. Although the firms sell similar products, each tries to make their products different from the rest. Each firm can set its price because the products are differentiated. Other characteristics of monopolistic competition include
- Freedom of entry and exit.
- There many sellers and buyers
- Each firm sets its product price
Answer:
There will be no amortized value for for research and experimental expenditures will be considered for the year 2018 and 2019 as new product will be introduced for sale from July 2020.
Explanation:
total available amount of deduction for research and experimental expenditures is:
2018 - $500,000 + 90,000 + 8,000 + 6,000 + 15,000
= $619,000
2019- $600,000 + 70,000 + 11,000 + 8,000 + 14,000
= $703,000
2020 - $0
Amortized value for research and experimental expenditures
= ($619,000+703,000)/60
= $22,033 per month
Amortized value for research and experimental expenditures for 2018
= $0
Amortized value for research and experimental expenditures for 2019
= $0
Amortized value for research and experimental expenditures for 2020 (from july to dec => 6 months)
= $22.033*6
= $132,198
Therefore, There will be no amortized value for for research and experimental expenditures will be considered for the year 2018 and 2019 as new product will be introduced for sale from July 2020.
