Guarantees are most effective in two situations. the first is when the company or products are not well known. the second is when the product's quality is superior to competition.
Guarantee is a legal term is a comprehensive and of higher value than a warranty or security. It's a document designed to protect consumers. It is a promise by a seller to a buyer that the he will take product responsibility & will replace and/or repair defective parts of the purchased item over the period of time contained in the contract. It is a legal understanding and is typically offered for free of charge. With a guarantee the consumer can get his product repaired or refunded for the parts that are replaceable and defective.
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Answer:
the operating margin is 5.4%
Explanation:
The computation of the operating margin is shown below:
As we know that
Operating Margin = Operating Income ÷ Sales
= $31.3 ÷ $578.3
= 5.4%
Hence, the operating margin is 5.4%
It could be determined by dividing the operating income from the sales
Answer: provisions
Explanation: According to ias 37
Answer:
independent, chain are the answer
Explanation:
Let understand that the organized table are intended to calculate missing numbers on Income Statement for the two companies are drawn below.
- Here, we are calculating missing columns for Monty Corp. and Whispering Winds Corp.
- Also understand that the bold numbers are the columns calculated according to the question.
Particulars Monty Corp. Whispering Winds Corp.
Sales revenue $90,000 $111,000
Sales return and allowance <u>$6,000</u><u> </u> <u>$5,000</u>
Net sales $84,000 $106,000
Cost of goods sold <u>$53,760 </u> <u>$65,720</u><u> </u>
Gross profit $30,240 $40,280
Operating expenses <u>$15,120 </u> <u>$19,080 </u>
Net income <u>$15,120</u><u> </u> <u>$21,200</u>
In conclusion, the formulae used to derived the bolded answers are:
- Sales revenue - Net sales = Sales returns and allowance
- Net sales - Cost of goods sold = Gross profit
- Gross profit - Operating expenses = Net income
- Net sales + Sales return and allowance = Sales revenue
- Net sales - Gross profit = Cost of goods sold
- Gross profit - Net income = Operating expenses
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