Answer:
Option B is correct.
Explanation:
In order to answer this question correctly, we first need to understand the law of demands.
Law of demands: It says that the relationship of price and quantity demanded is inversely proportional. It means if the price of a particular product goes high, then the quantity of demand will be reduced. Similarly, if the price of the product is low then the quantity of demanded will be higher.
Here,
Option B is the most relevant to the Law of Demand which says that Kathleen eats more steak when the price is low. It means when the price is low, the quantity of steak demanded is higher in Kathleen's case. Furthermore, Kathleen eats less when the price is high. It means, when the price of steak is higher then the quantity of steak demanded from Kathleen is low.
Hence, Option B is the correct option which fulfills the law of demand.
Answer:
Increase
The accounts receivable asset shows how much money customers who bought products on credit still owe the business; this asset is a promise of cash that the business will receive. Cash doesn’t increase until the business collects money from its customers.
Answer:
Explanation:
Stockholder's Equity
Paid in Capital:
Common Stock $48,000,000
Paid in Capital in excess of Par - Common Stock $6,400,000
Paid in Capital from sale of Treasury Stock $4,500,000
[58,900,000]
Total Paid in Capital $58,900,000
Retained earnings $63,680,000
Total Paid in Capital & Retained Earnings $122,580,000
Deduct: Treasury Stock $5,200,000
Total Stockholder's Equity $117,380,000
There are several types of organization restructuring:
<span>1. </span>Downsizing
<span>2. </span>Starbust
<span>3. </span>Verticalization
<span>4. </span>De-layering
<span>5. </span>Business process re-engineering
<span>6. </span>Outsourcing, and
<span>7. </span>Virtualization
<span>Among them, the type of restructuring to retain the most essential employees is known as de-layering. D</span><span>e-layering involves breaking down the typical pyramid setup into a flat organization. Its purpose is to thin out or lessen the top layer of unproductive and highly paid ‘white collar’ personnel. It promotes innovation, builds customer intimacy and increases consumer satisfaction. The main advantage is that the decision-making process becomes more effective and shorter.</span>
Answer:
* The company’s degree of operating leverage: 1.38;
* The impact on net operating income of a 22% increase in sales: it will increase by 30.4%;
* New contribution format income statement:
Engberg Company
Contribution format income statement
Amount Percentage of sales
Sales $176,900 100%
Variable expenses 70,760 40%
Contribution margin 106,140 60%
Fixed expenses 24,000
Net operating income 82,140
Explanation:
* The company’s degree of operating leverage = Contribution / profit = 87,000/63,000 = 1.38
* The impact on net operating income of a 22% increase in sales is calculated as: Degree of operating leverage x % changes in sales revenue = 1.38 x 22% = 30.4%.
* new contribution format income statement is shown in the answer part.
