Answer:
B) $480,000
Explanation:
In this question we compare the operating income
In the first case,
The operating income is
= Contribution margin - fixed cost
where,
= (Selling price per unit - Variable cost per unit) × Expected sales units per year
= ($100 - $45) × 20,000 units
= $1,100,000
And, the fixed cost is $420,000
So, the operating income is
= $1,100,000 - $420,000
= $680,000
In the second case,
The operating income is
= Contribution margin - fixed cost
where,
= (Selling price per unit - Variable cost per unit) × Expected sales units per year
= ($100 - $45) × 20,000 units
= $1,100,000
And, the fixed cost is $420,000 + $200,000 = $620,000
So, the operating income is
= $1,100,000 - $620,000
= $480,000
Answer:
$10,800
Explanation:
The computation of effect on the quantity factor is shown below:-
Actual variable cost = 18,000 × $5
= $90,000
Planned variable cost = 16,000 × $5.40
= $86,400
Total change in contribution margin = Actual variable cost - Planned variable cost
$90,000 - $86,400
= $3,600
Change in quantity = 18,000 - 16,000
= 2,000 units
Effect on the quantity factor = Change in quantity × Cost per unit
= 2,000 units × $5.40
= $10,800
Answer:
the amount of the impairment loss is $50,000
Explanation:
The computation of the amount of the impairment loss is shown below:
Impairment loss = Purchase price of trade marks - Estimated fair value
= $70,000 - $20,000
= $50,000
Hence, the amount of the impairment loss is $50,000
The same should be considered and relevant
In most nations, one or more governing bodies must approve government spending or new tax policies. this process causes a(n) implementation lag.
Implementation lag is the delay between an adverse macroeconomic event and the implementation of a fiscal or monetary policy response by the government and central bank. Implementation lag can result into delays due to various reasons such as failure in recognizing a problem, disagreements and bargaining over the appropriate response; physical, technical and administrative constraints etc.
Implementation lag may reduce the effectiveness of a policy response or even result in periods of procyclical policy. There is always an implementation lag after a macroeconomic surprise.Policy makers may not ever realize there is a lag due to data lag.
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