Answer:
The impact of eliminating the backpack division
Particulars Amount
Decrease in contribution margin $480,500 ($950500-$470,000)
<u>Decrease in Expenses:</u>
Fixed expenses <u>$208,800 </u> ($70522,000*40%)
Decrease in Net operating income <u>$271,700</u> (Financial disadvantage)
Answer:
13,000 units
Explanation:
The excess of budgeted sales over budgeted production = 127,000 - 110,000 = 17,000 units. In other words, this is the number of units that the company will be in short of.
The company has 30,000 units in beginning inventory, thus the amount of ending finished goods inventory will be = 30,000 - 17,000 = 13,000 units
Answer:
The five main characteristics of a c corporation are:
- limited liability: the owners' liability is determined by the amount of money they invested in purchasing the corporation's stock.
- corporations are owned by stockholders: every single stockholder owns a piece of the corporation, the size of that piece is determined by the amount of stocks.
- double taxation: owners of the corporation suffer from double taxation because first the corporation must pay corporate taxes and then the owners must pay income taxes when they receive dividends.
- corporations are separate entities: corporations exist by themselves, they are born when they are created and die when they are dissolved.
- corporations are professionally managed: the owners elect a board of directors and the board is responsible for hiring professional management.
Explanation:
If Tara bought, sweater $ 52, T-shirt $19, Shoes $68, Jeans $72, Necklace $21, the total would be;
52+19+68+72+21 = 230
But a tax rate of 7% was included,
Thus, 230 × 0.07 = 16.1
Therefore, the total amount is 230+16.1 = 246.1
Hence, the Estimate amount of money that Tara expects to pay is $250
