Answer:
C. categorizes expenses according to the cost function
Explanation:
According to the contribution margin income statement, a company shows its sales revenue, fixed and variable expenses. In that case, the company does not show the cost of goods sold. The company directly deducts its variable expenses from sales revenue to determine the contribution margin. Therefore, option A is wrong. Each financial statement of performance (Whether for manufacturing or non-manufacturing), has to be shown. Therefore, the contribution margin format shows the net operating income. It is also false.
As in contribution margin format, fixed and variable expenses are deducted from sales. Therefore, option C is correct.
Answer:
NPV= 1,036.16
Explanation:
Giving the following information:
Initial investment= $9,000
Cash flows= $2,700 at the end of each of the next four years.
Interest rate= 3%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 2,700/1.03= 2,621.36
Cf2= 2,700/1.03^2= 2,545
Cf3= 2,700/1.03^3= 2,470.88
Cf4= 2,700/1.03^4= 2,398.92
Total= 10,036.16
NPV= -9,000 + 10,036.16
NPV= 1,036.16
Answer:
All of these answers is correct.
Explanation:
