Answer:
The correct answer is letter "B": expresses items as a percentage of net sales.
Explanation:
A Common Size Income Statement reflects a percentage of net sales for each account. Common size income statements are basic tools that a business owner may use to compare the performance of his company to rivals or to compare the company to industry averages. Each line in this type of income statement is displayed as a percentage of revenue or sales and the amounts are compared to past performances which allow to observe the different values easily.
Answer: $489,000
Explanation:
Amount of sales required = (Fixed cost + Desired operating income ) / Contribution margin ratio
Contribution margin ratio for Cover-to-Cover Company:
= Contribution margin / sales
= 77,800/ 389,000
= 20%
Desired operating income = Current income + income increase
= 58,350 + 20,000
= $78,350
Amount of sales required:
= (19,450 + 78,350) / 20%
= $489,000
Sand.
Paper was originally tree, steel was metal, glass was heated to become glass
Answer:
(D) higher prices lead to higher profit and higher output.
Explanation:
When the price increase, the profitability of the firm increase, therefore firm produces more at high price. Hence at high price output increase. This is the reason why SRAS curve is positively sloped.
Answer:
D. what the value of the stream of future cash flows is today
Explanation:
The times' value of money derives that today value or we can say the present value is more than the value earned at the future or future value because of the earning capacity due to inflation. As inflation rises, consumer spending become less as compare to before
Just take an example
If you invest $1,000 today that earns the interest rate at 10% for one year
So, the present value = $1,000
And, the future value = $1,000 × 1.1 = $1,100
So, today value is becoming more worth than the future value
The formula to compute the future value is shown below:
Future value = Present value × (1 + interest rate)^number of years
Note: The yoda is actually today. It is given wrong
