Answer:
There are several ways to compute the degree of operating leverage (DOL). A fairly intuitive approach is expressed below.
DOL = (sales - variable costs) / (sales - variable costs - fixed costs)
For Kendall, the DOL is computed as follows:
DOL = (1,000 * $60 - 1,000 * $60 * .30) / (1,000 * $60 - 1,000 * $60 * .30 - $30,000) = 3.5
<em>hope this helps</em>
<em />
<em />
<em />
<em />
Answer:
Imagination Station is engaging in Vertical Integration.
Explanation:
Vertical Integration is a business strategy whereby a firm acquires businesses that provide the supplies it needs to make its products or that makes and sell its products.
In this context, Delux Technologies makes and sells only one product, a high-quality processor for mainframe computers and was approached by Imagination Station, a large computer manufacturer about purchasing their company.
Answer:
1. Using the percent-of-sales method, calculate the amount of Uncollectible-Account Expense if Summer Corporation estimates its uncollectible-account expense using a rate of 3% of credit sales. What is the ending balance of the Allowance for Uncollectible Accounts under this scenario?
14100
Summer Corporation has $ of uncollectible-account expense using the percent-of-sales method.
3100
Calculate the amount of its Uncollectible-Account Expense. What is the ending balance of the Allowance for Uncollectible Accounts under this scenario?
15000
The ending balance of the Allowance for Uncollectible Accounts is $ under this scenario.
Dont have enough information.
Explanation:
Account receivable 88000
Allowance for uncollectible -11000
Service revenue 470000
Estimate uncollectible 3%
Ending balance of the allowance 14100
Expense 3100
Allowance for Uncollectible 26000
Uncollectible expense account 15000
Answer:
$9,000
Explanation:
Total variable cost of manufacturing the components are as follows;
Direct materials $21,000
Direct labor 6,000
Variable overhead 3,000
————
Total $30,000
If we purchase the cost is $39,000 and the company is indifferent if they will manufacture or purchase. Therefore;
$39,000 - 30,000 = $9,000 (unavoidable fixed cost)
Explanation:
I mean, everybody deserves to have an achievement plan. So why not make one from it?
