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mestny [16]
3 years ago
13

Top Sound International designs and sells high-end stereo equipment for auto and home use. Engineers notified management in Dece

mber 2018 of a circuit flaw in an amplifier that poses a potential fire hazard. Further investigation indicates that a product recall is probable, estimated to cost the company $2.8 million. The fiscal year ends on December 31. Should this contingent liability be reported, disclosed in a note only, or neither?
Business
1 answer:
Angelina_Jolie [31]3 years ago
4 0

Answer:

Yes

Explanation:

Since in the question it is mentioned that the product recall is probable and predicted that the cost to the company is $2.8 million so this represent the contingent liability as it is probable & estimated

So the same should be disclosed and reported

Hence, the answer should be yes

The same is to considered relevant

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You are analyzing a project and have developed the following estimates. The depreciation is $11,000 a year and the tax rate is 3
77julia77 [94]

Answer:

no option is correct, check the question to see if it was copied correctly and check the work to verify my answer

$1,430

Explanation:

worst case scenario:

2,500 units sold at $16 = $40,000

variable cost per unit $14 x 2,500 units = $35,000

contribution margin = $5,000

fixed costs = $8,500

depreciation expense = $11,000

cash flow = [(contribution margin - fixed costs - depreciation) x (1 - tax rate)] + depreciation

cash flow = [($5,000 - $8,500 - $11,000) x 0.66] + $11,000 = $1,430

8 0
2 years ago
Consumers often seek bargains by purchasing goods in large quantities; for example, buying in bulk at Costco or buying larger bo
Nimfa-mama [501]

Answer:

The correct answer is the option B: second-degree price discrimination.

Explanation:

To begin with, the term of price discrimination, in marketing and economics, refers to the action of charge different prices to different consumers for the same product that do not vary in quality. This concept states fourth differents degrees in order to use the most beneficial strategy to one's company.

To continue,<em> the second-degree price discrimination</em> establishes that companies price products differently based on the preferences of various groups of consumers and furthermore it is very common to <u>apply this type of discrimination through quantity discounts</u> and to add an example, is very common to use this strategy in <u>warehouse retailers such as Costco.</u>

6 0
3 years ago
An approach to combining risk identification, risk assessment, and risk appetite into a single strategy. is known as risk protec
Bad White [126]
If this is for apex it should be D

8 0
3 years ago
During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $5, 310
mariarad [96]

Answer:

See the attached picture for detailed answer.

Explanation:

See the attached picture for explanation.

7 0
3 years ago
Companies that have become successful with a limited standard product offering often fall into the trap of subsequently broadeni
DiKsa [7]

Answer:

True

Explanation:

When a company successfully offers a product or few products to customers, it tends to expand the range of products it has to offer.

For a <u>company to increase its range of products successfully, it has to realize that it must make corresponding changes to its processes to accommodate the addition of new products.</u>

However <em>oftentimes, companies do not make the necessary changes to their process strategy when expanding their product offerings.</em>

8 0
3 years ago
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