John received a promotion at work and felt new clothes would be necessary in the new position. John went to a local store and charged three ties on his charge account at a cost of $60 each. Bill, a friend of John's, saw a sidewalk vendor selling ties at a cost of three for $10 and bought three at that price. The friends compared purchases that night and found that they had purchased identical ties. John became enraged and said that he would not pay the charge-account bill because the ties were clearly not worth $60 each. Bill indicated that he would testify on John's behalf if litigation ensued. What would be the probable outcome of the lawsuit

Answers

Answer 1

Answer:

John will lose the lawsuit

Explanation:

Businesses have a right to set the price of their products, and when the customers considers the price and agrees with it the deal is sealed.

In the given scenario John made the purchase at $60 per tie and he was satisfied with the sale at point of purchase.

He only became enraged when Bill told him he bought his identical ties at $10.

John will lose a lawsuit of he fails to pay the charge-account bill because he willingly agreed to the $60 per tie price.


Related Questions

A company has two open seats, Seat A and Seat B, on its board of directors. There are 6 candidates vying for these 2 positions. There will be a single election to determine the winner of both open seats. As the owner of 100 shares of stock, you will receive one vote per share for each open seat. You decide to cast all 200 of your votes for a single candidate. What is this type of voting called?

a. democratic
b. cumulative
c. straight
d. deferred
e. proxy

Answers

Answer:

b. cumulative

Explanation:

Cumulative voting is a type of voting in which more than one vote is placed to the desired candidate. The voters possess the right to extend more than one vote. All the votes in the hand of the voter can be entitled to any particular candidate as decided by the voter.  

In the given situation, cumulative voting system has been used. The voter gives all the 200 votes to the single candidate.

An asset was purchased for $100,000 on January 1, Year 1 and originally estimated to have a useful life of 12 years with a residual value of $10,000. At the beginning of the third year, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,800. Calculate the third-year depreciation expense using the revised amounts and straight-line method. a.$20,550.00 b.$21,550.00 c.$21,050.00 d.$19,550.00

Answers

Answer:

A

Explanation:

The following steps would be taken to determine the answer

Calculate depreciation expense given the initial information calculate the accumulated depreciation by the third year. Accumulated depreciation is sum of depreciation expensesubtract the accumulated depreciation from the cost price of the asset. This would give the book value calculate the depreciation expense using the new information and the book value

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($100,000 - $10,000) / 12 = $7500

Depreciation expense each year is $7500

Accumulated depreciation = $7500 x 2 = $15,000

Book value at the beginning of year 3 = $100,000 - $15,000 = $85,000

($85,000 - $2800) / 4 = $20,550

How does risk influence the rate of interest?

Answers

Answer:

Interest rate risk directly affects the values of fixed income securities. Since interest rates and bond prices are inversely related, the risk associated with a rise in interest rates causes bond prices to fall and vice versa. Interest rate risk affects the prices of bonds, and all bondholders face this type of risk.

Explanation:

Hope this helped Mark BRAINLEST!!

The Lincoln wheat penny was designed by Victor D. Brenner in 1909. Currently, the most valued penny is the 1909 S VDB penny. It was minted in San Francisco and only 484,000 were minted with the initials on the back. In 2015, the S VDB penny in uncirculated condition is worth $3,200. When will it be worth $15,000

Answers

Answer:

The answer is "1960.58"

Explanation:

Through the partnership, the importance of the penis is increased

[tex]w = 0.01 a^x[/tex]

In which an element is gradual and x the year is no.

For [tex]2015 x = 2015 - 1909 = 106[/tex], and at that time [tex]w = 3200[/tex]

thus

[tex]3200 = 0.01 a^{106}\\\\320000 = a^{106}\\\\\ln(320000) = 106 \ln(a)\\\\12.67 = 106 \ln(a)[/tex]

[tex]\ln (a) = 0.1196\\\\\to a = e^{0.1196} = 1.127[/tex]

[tex]15,000 = 0.01\times 1.127^x\\\\15,00,000 = 1.127^x[/tex]

[tex]\ln(15,00,000) = x \ln(1.127)\\\\[/tex]

[tex]6.17 = x\times 0.1196\\\\\to x = 51.58\\\\\to Year = 1909 + 51.58 = 1960.58[/tex]

Suppose that it has just been projected that, because of a number of technological innova- tions, your firm will need 20 percent fewer clerical employees within the next three years. There are currently 122 clerical positions in the company, split between three departments of equal size. Retirements at this level are projected to be roughly 2 percent per year. Annual vol- untary turnover and involuntary turnover for Department A is 2 percent and 5 percent, respectively; Department B is 3 percent and 3 percent; and Department C is 5 percent and 0 percent. Do you project a labour shortage or surplus in the next three years for clerical positions

Answers

Answer:

There will be a labor shortage

Explanation:

number of clerical staffs present = 122 staffs

number of clerical staffs needed in 3 years

= 122 - ( 20% * 122 ) = 97.6 ≈ 98 staffs

next : lets project the number of employees in next three years considering the voluntary and involuntary turnovers

= 122*(1-2%)^3 * (((1-7%)^3)/3  +  ((1-6%)^3)/3  +  ((1-5%)^3)/3)

= 95.4 ≈ 94 staffs

since the projected number of employees is < number of clerical staffs needed in 3 years, There will be a labor shortage

The basic economic problem is that consumers have too many products and services to choose from.
a. True
b. False

Answers

I would say it would be True, as consumers may get overwhelmed with to many choices

Biggest disadvantage of using technology in college courses?

Answers

Answer:

The presence of technology can be distracting to students. ...

Technology can make it easier to cheat. ...

Using tech can cause some students to disconnect from the classroom. ...

Some students may not know the difference between reliable and unreliable resources.

Answer: The presence of technology can be distracting to students. ...

OR    Technology can make it easier to cheat. ...

Explanation:

People come to different decisions using cost-benefit analysis even under the
same conditions because costs and benefits are both what?
A. Subjective
B. Non-monetary
C. Utilities
D. Absolute

Answers

the answer is A bc of process of elimination

What is an easement? What is it called when an easement is obtained against the consent of the landowner? What type of easement can be created by two adjacent landowners where one of them is “landlocked” by the other landowner?

Answers

Answer:

1. An easement is the right given to a person by law to utilize a particular part of another person's land.

2. When an easement is obtained against the consent of the landowner it is known as Prescriptive easement.

3. An easement that is created by two adjacent landowners where one is landlocked by the other landowner is called Easement appurtenant.

Explanation:

An easement is the lawful right of a person to use another person's property. Ingress, egress, and drainage are common reasons why an easement might be needed. When a piece of land does not have access to a roadway, then an easement might be required.

Prescriptive easement occurs when a land has been used by another person who is not the legal owner for up to twenty years without the consent/knowledge of the original owner of the land.

Easement appurtenant occurs for example when a person cannot access his own land with passing through another person's land. An easement by necessity can be created in such situations to solve the problem.

A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $768,000 of its accounts receivable as collateral for the loan. The contract provided that Miami would advance 85% of the gross amount of the receivables. Sterling Inc. continues to collect payments for the receivables and the cash from customers is then remitted to the finance company. The cash remitted is first applied to the finance charges, with the remainder applied to principal.

During the first month, customers owing $524,800 paid cash, less sales returns and allowances of $20,480, originally recorded as a refund liability. The finance charge at the end of the first month was $4,480. During the second month, the remaining receivables were collected in full, except for $5,120 off as uncollectible. Final settlement was effected with the finance company, including payment of an additional finance charge of $1,920.

Required:
a. Record the entry for Sterling to record the secured borrowing.
b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.
c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

Answers

Answer:

See all the entries below.

Explanation:

a. Record the entry for Sterling to record the secured borrowing.

The entries will look as follows:

Account Name                                    Debit ($)           Credit ($)    

Cash (768,000 * 85%)                       652,800

  Note Payable                                                              652,800

(To record the secured borrowing.)                                                    

b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.

The entries will look as follows:

Account Name                                    Debit ($)           Credit ($)      

Cash                                                   504,320

Refund Liability                                    20,480

  Accounts Receivable                                                 524,800

(To record collection on receivables for first month.)                        

Interest Expense                                     4,480

Note Payable                                      499,840

  Cash                                                                             504,320

(To record payment to Miami for the first month.)                              

c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

The entries will look as follows:

Account Name                                    Debit ($)            Credit ($)    

Cash                                                    238,080

Allowance for Doubtful Debt                  5,120

  Accounts Receivable (w.1)                                          243,200

(To record collection on receivables for second month Interest.)    

Expense                                                   1,920

Note Payable                                       151,040

  Cash (w.2)                                                                      152,960

(To record final payment to Miami.)                                                      

Workings:

w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200

w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960

An accounting clerk for Chesner Co. prepared the following bank reconciliation:

Chesner Co. Bank Reconciliation July 31, 2016

Cash balance according to company's records $6,570
Add:
Outstanding checks $3,150
Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 540
Note for $10,300 collected by bank, including interest 10,710 14,400
Deduct:
Deposit in transit on August 31 $6,690
Bank service charges 60 6,750
Cash balance according to bank statement $14,220
$20,970

a. From the data prepared by the accounting clerk, prepare a new bank reconciliation for Chesner Co.
b. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?

Answers

Answer:

A. Adjusted balance $17,760

Adjusted balance $17,760

B. $17,760

Explanation:

A. Preparation of a new bank reconciliation for Chesner Co.

Cash balance according to bank statement l

$14,220

Add Deposit in transit on August 31 $6,690

Deduct Outstanding checks $3,150

Adjusted balance $17,760

Cash balance according to company's records $6,570

Add Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 540

Add Note for $10,300 collected by bank, including interest 10,710

Less Bank service charges 60

Adjusted balance $17,760

B. Based on the above bank reconciliation If a balance sheet were prepared for Chesner Co. on July 31, 2016 the amount that should be reported for cash is $17,760

From the data prepared by the accounting clerk,

b. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?

Faux Trees Company produces artificial Christmas trees. A local shopping mall recently made a special order offer; the shopping mall would like to purchase 230 extra-large white trees. Faux Trees Company is currently producing and selling 20,000 trees; the company has the excess capacity to handle this special order. The shopping mall has offered to pay $160 for each tree. An accountant at Faux Trees Company provides an estimate of the unit product cost as follows:

Direct materials $51.61
Direct labor​ (variable) $3.80
Variable manufacturing overhead $1.00
Fixed manufacturing overhead ​$4.00
Total unit cost $60.41

This special order would require an investment of $5,000 for the molds required for the extra−large trees. These molds would have no other purpose and would have no salvage value. The special order trees would also have an additional variable cost of $8.26 per unit associated with having a white tree. This special order would not have any effect on the​ company's other sales. If the special order is​ accepted, the​ company's operating income would increase​ (decrease) by:_______

a. $15679 decrease.
b. $15,679 increase.
c. $16,708 decrease.
d. $10,679 increase.

Answers

Answer: $‭16,925.9‬0 increase

Explanation:

Company already has the excess capacity to handle this order so the fixed costs will not be included as they would have already been incurred.

Cost of manufacturing the trees would be:

= Variable cost + Fixed cost

= ((51.61 + 3.80 + 1.00 + 8.26 for white tree) * 230 trees) + 5,000 for molds

= (64.67 * 230) + 5,000

= $‭19,874.1‬0

Incremental revenue = 230 trees * 160

= $36,800

Incremental operating income = 36,800 - ‭19,874.1‬

= $‭16,925.9‬0 increase

Note: Options might be for a variant of this question.

Assume the following for the town of Boone: The town has a total population of 60,000 people, of which 2,000 are under 16 years of age or are institutionalized; 4,000 are full-time students who are not employed and are not seeking work; and 50,000 are employed. The rest of the people are out of work but have been actively seeking work within the past four weeks. What is Boone's unemployment rate?

Answers

Answer:

Unemployment rate= 7.4%

Explanation:

First, we need to calculate the labor force. The labor force is the sum of employed people and unemployed people over 16 actively looking for work.

Labor force= 60,000 - 2,000 - 4,000= 54,000

Now, we can calculate the unemployment rate, using the following formula:

unemployment rate= (unemployed people / labor force)*100

unemployment rate= (4,000/54,000)*100

unemployment rate= 7.4%

On average, your firm receives 65 checks a day from customers. These checks, on average, are worth $39.90 each and clear the bank in 1.5 days. In addition, your firm disburses 38 checks a day with an average amount of $89.50. These checks clear your bank in 2 days. What is the average amount of the collection float? $2,473.80 $3,401.00 $3,890.25 $5,101.50 $6,802.00

Answers

Answer:

$3,890.25

Explanation:

Calculation to determine the average amount of the collection float

Using this formula

Collection float =Average Checks received ×Average checks worth×Bank checks clearing numbers of days

Let plug in the formula

Collection float =65 x $39.90 x 1.5 days

Collection float = $3,890.25

Therefore the average amount of the collection float will be $3,890.25

eamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 10,700 Variable costs per unit: Direct materials $ 108 Direct labor $ 51 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 9 Fixed costs: Fixed manufacturing overhead $417,300 Fixed selling and administrative expense $834,600 There were no beginning or ending inventories. The absorption costing unit product cost was:

Answers

Answer:

$205 per unit

Explanation:

Calculation to determine what The absorption costing unit product cost was:

Using this formula

Absorption costing unit product cost = Direct material + Direct labour + Variable manufacturing overheads + (Fixed manufacturing overheads / Number of units produced)

Let plug in the formula

Absorption costing unit product cost= $108 + $51 + $7 + ($417,300 / 10,700)

Absorption costing unit product cost=$108 + $51 + $7 + $39

Absorption costing unit product cost= $205 per unit

Therefore The absorption costing unit product cost was:$205 per unit

Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 3% rate after Year 3. Wilde's tax rate is 25%. Year 1 Year 2 Year 3 Interest expenses $80 $95 $140 What is the horizon value of the interest tax shield

Answers

Answer: $400.56

Explanation:

Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)

Tax shield in year 3 = Interest expense * tax rate

= 140 * 25%

= $35

Horizon value = 35 * ( 1 + 3%) / (12% - 3%)

= $400.56

define futures contract.​

Answers

A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange

A large brand runs several companies, including a chain of hotels, an automobile business, and a software development firm. Which data warehouse would help the organization view consolidated results of all the businesses?
A.
distributed
B.
LAN based
C.
virtual
D.
multistage
E.
stationary

Answers

Answer:

A.

distributed

Explanation:

In the case of the large brand running several companies, the best data warehouse suitable for them would be distributed type. This is because, it would allow them to house their data separately in the different arms of the business like hotels, automobiles business and software development businesses before the information is linked together and distributed evenly.

The distributed data warehouse allows them to share information among the various arms of the businesses due to the linkage between them.

https://portal.worksafeacademy.co.za/quiz/different-backup-devices-quiz/?attempt_key=fHdF6#​

Answers

Answer:

i need your login info

Explanation:

if u want me to do it lol :)

Vaughn Manufacturing manufactures a product with a unit variable cost of $100 and a unit sales price of $186. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $130 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:______.
A. Income would increase by $40,000.
B. Income would increase by $8,000.
C. Income would decrease by $8,000
D. Income would increase by $140,000

Answers

Answer:

The correct option is A. Income would increase by $40,000.

Explanation:

Note: There are some errors in the data provided in this question. The errors are threfore fixed by providing the complete question again before answering the question as follows:

Vaughn Manufacturing manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:______.

A. Income would increase by $40,000.

B. Income would increase by $8,000.

C. Income would decrease by $8,000

D. Income would increase by $140,000

The explanation of the answer is now given as follows:

Additional units to be sold = 1000

Selling price per unit of additional units to be sold = $140

Unit variable cost = $100

Expected change in income if the special order is accepted = (Selling price per unit of additional units to be sold - Unit variable cost) * Additional units to be sold = ($140 - $100) * 1000 = $40,000

Therefore, the correct option is A. Income would increase by $40,000.

The following inventory information was taken from the records of Kleinfeld Inc. on December 31, 2020 Historical cost $12,000 Replacement cost $7,000 Expected selling Price $9,000 Expected selling cost $500 Normal profit margin 50% of price Assume that in February 2021, the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should be made under US GAAP in the preparation of the March 31, 2021 financial statements

Answers

Answer:

Inventory should be increased by $3,500

Explanation:

Calculation to determine What adjustment to inventory should be made under US GAAP in the preparation of the March 31, 2021 financial statements

Adjustment to inventory =(13,000 - 9,000 )-500

Adjustment to inventory= 4,000 - 500 Adjustment to inventory=$3,500

If equilibrium is achieved in a competitive market the deadweight loss will equal the sum of consumer surplus and producer surplus. the deadweight loss will be the same as the opportunity cost of the last unit of output sold. the deadweight loss will be maximized. there is no deadweight loss.

Answers

Answer:

there is no deadweight loss.

Explanation:

In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.

This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.

Generally, a perfectly competitive market is characterized by the following features;

1. Perfect information.

2. No barriers, it is typically free.

3. Equilibrium price and quantity.

4. Many buyers and sellers.

5. Homogeneous products.

Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.

Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.

Organizations with low turnover and satisfied employees tend to perform better. On the other side of the coin, organizations have to act when an employee's performance consistently falls short. Based on these concepts, organizations may distinguish between involuntary and voluntary turnover, recognize their effects on the organization, develop measures to encourage top performers to stay, and develop ways to manage the separation process fairly. Any organization wants to retain good performers and encourage or force low-performing employees to leave. There are two types of employee turnover. Involuntary turnover occurs when the employer requires employees to leave, often when they would prefer to stay. This action may potentially result in lawsuits and violence. Voluntary turnover occurs when employees initiate the turnover, often when the organization would prefer to keep them. These employees may retire or leave to work with different organizations. Both types of turnovers are costly because of subsequent needs to recruit, hire, and train replacements.
Roll over each of the following items, read the statements, and place them in the appropriate columnin the chart. Each category has three statements.
1. Any reason
2. Workplace violence
3. Better job
4. Retirement
5. Refusing
6. Violating
7. Promise
8. Careers
9. Employee layoff
A. Voluntary Turnover
B. Involuntary Turnover
C. Employee at Will Doctrine

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

Voluntary Turnover:

Better Job: If an employee is offered a better job, he may choose to quit his current position.

Careers: If an employee is career-oriented and wishes to pursue higher education, he will willingly leave his employment.

Retirement: When an employee reaches the legal working age, he retires, which is referred to as voluntary retirement.

Involuntary Turnover:

Workplace Violence: An employer may decide to fire an employee who engages in workplace violence. This is what is known as spontaneous turnover.

Violating: If an employee is found to be in breach of the company's rules, he will be dismissed, resulting in involuntary turnover.

Employee layoffs: Forced turnover occurs when a company's employees are laid off in large numbers.

Employment at-will doctrine:

For some reason: This allows the employer to fire an employee for any cause.

Promise: Neither the employer nor the employee has made any commitments to each other.

Refusing to state the reason for the employee's termination: If the employer refuses to state the reason for the employee's termination,

Culver Corporation owns equipment that cost $81,600 and has a useful life of 8 years with no salvage value. On January 1, 2020, Culver leases the equipment to Havaci Inc. for one year with one rental payment of $15,300 on January 1. Assuming Havaci (lessee) elects to use the short-term lease exception, prepare Havaci's 2020 journal entry. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answers

Answer: Check attachment

Explanation:

Check the attachment for the journal entry. Also, note that the Depreciation expense was calculated in the journal entry as:

= Cost of asset - Salvage value / Useful life of asset

= (81600 - 0) / 8

= $10200

Myrna and Geoffrey filed a joint tax return in 2018. Their AGI was $85,000, and itemized deductions were $24,700, which included $7,000 in state income tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes that they paid in 2018. The standard deduction for married filing jointly in 2018 was $24,000.
Under the tax benefit rule, what amount of the state income tax refund is included in gross income in 2019?

Answers

Answer:

$700

Explanation:

Calculation for what amount of the state income tax refund is included in gross income in 2019

Standard deduction for married filing jointly in 2018 $24,000

Less itemized deductions ($24,700)

State income tax refund included in gross income in 2019 $700

($24,000-$24,700)

Therefore the state income tax refund that is included in gross income in 2019 will be $700

you are required to write a report and in this report you are to consider the importance of understanding the business environment​

Answers

Answer:

The understanding of its business environment helps an organization to make realistic plans and ensure their effective implementation. It also helps thebusiness enterprise in identification of opportunities and threats.

Explanation:

I am not sure if this is what you wanted

Item 5 Required information Skip to question Current Time 0:00 / Duration 6:35 1x The Science Institute has three departments: Biology, Chemistry, and Physics. The institute's controller wants to estimate the cost of operating each department. He has identified several indirect costs that must be allocated to each department including $43,000 of indirect salaries, $4,500 of office supplies, and $36,500 of office rent. There are 500 students in the biology department, 200 in chemistry and 300 in physics (1,000 total students as the allocation base). The amount of cost that should be allocated to the Chemistry Department is

Answers

Answer:

$16,800

Explanation:

Calculation to determine The amount of cost that should be allocated to the Chemistry Department is

First step is to calculate the Cost to be allocated

Cost to be allocated = $43,000 + $4,500 + $36,500

Cost to be allocated= $84,000

Second step is to calculate the Allocation base

Allocation base = 500 + 200 + 300

Allocation base = 1,000 total students

Third step is to calculate the Allocation rate using this formula

Allocation rate = Cost to be allocated ÷

Allocation base

Let plug in the formula

Allocation rate= $84,000 ÷ 1,000

Allocation rate = $84 per student

Now let calculate the Allocation to Chemistry Department

Allocation to Chemistry Department = $84 per student x 200

Allocation to Chemistry Department = $16,800

Therefore The amount of cost that should be allocated to the Chemistry Department is $16,800

Barnes Company reports the following operating results for the month of August: sales $300,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income.
Compute the net income to be earned under each alternative.
1. Increase selling price by 10% with no change in total variable costs or sales volume.
2. Reduce variable costs to 55% of sales.
3. Reduce fixed costs by $18,000.
Which course of action will produce the highest net income?

Answers

Answer:

1. $43000

2.$65000

3. $31000

Alternative 2

Explanation:

Computation for the net income to be earned by Increasing the selling price by 10% with no change in total variable costs or sales volume.

1. Calculation of net income :-

First step is to calculate the Current selling price

Current selling price = $300000/ 5000 units

Current selling price= $ 60 per unit

Second step is to calculate the New selling price

New selling price = $ 60 *110%

New selling price= $ 66 per unit

Now let calculate the net income

Sales (5000 units * $66 per unit) $330000

Less Variable costs ($217000)

Contribution Margin $113000

($330000-$217000)

Less Fixed costs ($70000)

Net income $43000

($113000-$70000)

2. Computation for the net income to be earned by Reducing variable costs to 55% of sales.

Sales (5000 units * $60 per unit) $300000

Less Variable costs (55% * $300000) $165000

Contribution Margin $135000

($300000-$165000)

Less Fixed costs($70000)

Net income $65000

($135,000-7000)

3.Computation for the net income to be earned if their is Reduce fixed costs by $18000.

Dr Sales (5000 units * $60 per unit) $300000

Less Variable costs ($217000)

Contribution Margin $83000

($300000-$217000)

Less Fixed costs $52,000

($70000 - $18000)

Net income $31000

($83,000-$52,000)

Based on the information given the course of action that will produce the highest net income is alternative 2 with the amount of $65,000

1. The federal government is considering selling tracts of federally owned land to private developers and using the revenues to provide aid to victims of an earthquake in a foreign country. How would this policy affect the levels of federal revenues, expenditures, and deficits under a cash accounting system

Answers

Answer:

The responses to this question can be defined as follows:

Explanation:

In a currency system, its current amount of the debt is influenced by the cash financial statements, and sales will rise by amount and revenue would be compensated by spending increases on foreign aid. The financial accounting system must realize that its government sold a well-established resource and increased the overall scarcity.

Its capital account weakness relates to an undistorted added money from the currency exchange that would offset a decrease throughout the estimate of the benefits of Congress and lead to an increase in the utilization of the shortfall quickly.

(Last Word) Fixed costs for a firm are analogous to: Group of answer choices starting out in a hole that represents economic losses if the firm produces nothing. digging a deeper financial hole by producing when prices are too low. the cost of the shovel needed to fill the financial hole. the dirt that fills up the financial hole.

Answers

Answer:

starting out in a hole that represents economic losses if the firm produces nothing.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Fixed costs can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Thus, they are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Some examples of fixed costs in business are loan payments, employee salary, depreciation, marketing costs, rent, insurance, lease, utilities, administrative cost, research and development costs, etc.

Furthermore, fixed costs may be relevant in a decision because it affects the amount of future cash-flow of a business entity.

Hence, the fixed costs for a firm are analogous to starting out in a hole that represents economic losses if the firm produces nothing. This simply means that, the firm is only using it money to fund the all of the necessary items or utilities required for the operation of its business but do not produce any goods or services. Simply stated, the firm is not generating any revenue as its produces nothing.

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