Answer:
<u>Favourable Changes:</u>
Sales
Gross Profit
Operating Income
Interest Expense
Net Income
<u>Unfavourable Changes:</u>
Cost Of Sales
Selling Expenses
General Expenses
Other Revenue
Income Taxes
Explanation:
Observe Movement from 2018 results to 2019 results
Erie Corp
Vertical Analysis of Income Statement
2019 2018
Sales 1,397 1,122
Less Cost Of Sales 935 814
Gross Profit 462 308
<u>Less Operating Expenses</u>
Selling Expenses 154 121
General Expenses 88 77
Operating Income 220 110
<u>Less Non- Operating Expenses</u>
Other Revenue 4 7
Interest Expense 2 9
Income Taxes 134 66
Net Income 88 42
Answer:
d. Supply is perfectly elastic.
Explanation:
Perfectly elastic supply is when a change in price causes supply to fall to zero.
The supply curve is usually an horizontal line.
I hope my answer helps you
Answer: Sky's effective interest rate on this loan is 8.39%.
In this question, we assume that interest is compounded annually.
Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.
Face value of the note $16 million
Discount Rate p.a 8%
Tenure of the note 7 months
[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]
So, Sky pays an interest of 0.746666667 on a sum of 15.25333333 for 7 months. This works out to a seven month interest of:
From this we can work out the effective interest rate for Sky as follows:
Answer:
Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate
Explanation:
Normal costing refers to the actual cost of direct materials, direct labor, and manufacturing overhead applied. This cost is calculated by using a predetermined annual overhead rate.
Direct costs are expenses involved in producing goods or providing services and indirect costs are general expenses that are involved in operating.
The statement about normal costing which is not true is ''Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate''
Answer:
Mark-up percentage= 87.55%
Explanation:
Giving the following information:
Purchased price= $15.99
Selling price= $29.99
<u>To calculate the mak up percentage, we need to use the following formula:</u>
Mark-up percentage= [(selling price - purchase price)/purchase price]*100
Mark-up percentage= [(29.99 - 15.99)/15.99]*100
Mark-up percentage= 87.55%
