Answer:
Missing word <em>"sold 20,000 units during the month at a sales price of $60 per unit.. b. What is the company's degree of operating leverage? c. How many units would the company have to sell to achieve a desired operating income before taxes of $150,000?"</em>
<em />
a. Contribution Margin Ratio = Contribution margin / Sales
= 400000 / 1200000
= 0.3333
= 33.33%
b. Operating Leverage = Contribution / Net Income
= 400000 / 100000
= 4 Times
c. Sale to achieve desired profit = (Fixed Cost + Desired Profit) / Contribution Margin Ratio
= (300000 + 150000) / 0.3333
= $1350000
Sales in Units = $1350000 / 60 units = 22500 units
Answer:
The correct answers is: Give firms the right to require a worker not to join a union as a condition of employment.
Explanation:
A Yellow-dog contract <u>is an illegal contract that contains employment agreements with the condition that workers could not join labor unions or if they were already in a union, they had to resign their memberships or lose their jobs.</u>
It was believed that employers and their workers should be free to negotiate labor agreements between themselves without interference from the government.
Employers challenged labor union opposition to yellow dog contracts by asserting that the agreements were negotiable and workers were not forced to sign them. According to the unions, few workers who refused to sign the anti-union employment agreements were hired.
<u>In the year 1932, the labor unions managed to get Congress to pass legislation, outlawing yellow dog contracts.</u>
Answer:
Relevant cost= $30
Explanation:
Giving the following information:
Direct materials $4
Direct labor 10
Factory overhead 40
Standard cost per unit $54
Fixed cost is 60% of applied factory overhead, and is not affected by any make or buy decision.
<u>The relevant cost in a "make or buy" decision is the cost that can be avoided. Therefore, the fixed manufacturing cost is not relevant.</u>
<u></u>
Relevant overhead= 40*0.4= $16
Relevant cost= 4 + 10 + 16
Relevant cost= $30
Answer: See attachment
Explanation:
a. What is Poplock’s year 1 depreciation expense for each asset?
See attachment. Note that the depreciation for the assets were calculated as the original basis × the rate. e.g for Computer equipment, the Depreciation was, the original basis of $5000 × the rate of 20% which equals $1,000.
b. What is Poplock’s year 2 depreciation expense for each asset?
Check attachment.
Depreciation for computer = $1600
Depreciation for day grooming furniture = $1714
Depreciation for popup truck = $3200
Depreciation for commercial building = $6923
Answer:
The revenue that the investment in the company would increase by $100,000.
Explanation:
Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:
- Cost
- Net Realizable Value (Fair Value less Cost to Sell)
This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.
The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.
