If sales increase by $40,300 the firms loss decreases from -($47,300) to -($38,424).
Variable costs 78% of sales = 0.78 x 585,000 =$456,300
Sales = $585,000
Fixed costs =$176,000
Operating Profit = Sales- variable cost -Fixed cost
=$585,000- $456,300- $176,000
= -($47300)
If sales increase by $40,300 = $585,000+ $40,300
= $625,300.
Variable cost = 78% of $625,300 = $487,734
The new operating income will be:
Operating Profit = Sales- variable cost -Fixed cost
=$625,300- $487,734- $176,000
= -($38,434)
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the profit for a production process is equal to $2,000 minus two times the number of units produced. the mean and variance for the number of units produced are 500 and 900, respectively. find the mean and variance of the profits.
Variance of profit is $3600.
mean variance is $ 360
Let X denote the number of units produce then E(X)=50 abd Var(X)=90
Let Y denote the profit the Y=1000-2*X
So, mean profit =E(Y)=E(1000-2*X)=1000-2*E(X)=1000-2*50=900
Variance of profit =Var(Y)=Var(1000-2*X)=4*Var(X)=4*90=360
Let X denote the number of units produce then E(X)=500 abd Var(X)=900
Let Y denote the profit the Y=2000-2*X
So, mean profit =E(Y)=E(2000-2*X)=2000-2*E(X)=2000-2*500=1000
Variance of profit =Var(Y)=Var(2000-2*X)=4*Var(X)=4*900=3600
Profit variance is the distinction between the real income skilled and the budgeted income degree.
A variance is the distinction between real and budgeted income and expenditure.
To calculate gross earnings variance, you'll subtract your projected gross benefit from your actual gross profit, which equals periodic sales minus costs of goods bought. For working variance, subtract projected working profit from actual running profit, which equals revenue minus all COGS and running prices.
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______ is relatively rare in the real world, although this market model is highly ______ to several industries.
Pure competition is relatively rare in the real world, although this market model is highly relevant to several industries. A marketing scenario where many companies sell the same product and cannot differentiate themselves from one another; as a result, no firm has a substantial impact on price.
The ease with which new businesses can enter the market and great market knowledge are further existing factors. Agricultural items like corn, wheat, and soybeans are some of the best examples of markets that are just competitive. The presence of numerous suppliers and the lack of significant entry barriers make monopolistic companies similar to pure competition.
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kit kat is a candy bar that is sold around the world. but kit kats are not the same in every geographic location. in japan, for example, you can buy green tea and sweet potato kit kats. in england, you can buy hazelnut kit kats, and in the united states, you can buy big kats, or larger versions of the candy. each country is seen as having their own unique culture, and therefore their own need for special products. what kind of worldview would you say kit kat has? geocentric polycentric ethnocentric regiocentric
Kitkat has taken a polycentric approach to selling candy bars in different parts of the world
The company offers products that are specially suited for the local market and adjusts its marketing strategy accordingly. The key to successfully marketing the product in that nation is to respect its values. The antithesis of ethnocentrism is this strategy. With this strategy, the company typically assumes that the international market is unique from the home market. For instance, Pizza Hut sells sweet potato-stuffed crusts in South Korea and squid and seaweed on its pizzas in Japan to cater to local tastes. The company thoroughly respects the nation's values, including its culture, religion, and customs.
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suppose that the united states is a large country. in fall 2009, the united states imposed tariffs on tires imported from china. the deadweight losses of these tariffs were larger than the terms-of-trade gains to the u.s. economy. who was better off and who was worse off as a result of these tariffs?
U.S. tire producers were more accepting of U.S. customers and Chinese tire producers were more threatened.
What is Deadweight losses?The difference in production and consumption of any given product or service, including government tax, is referred to as deadweight loss in economics. When the quantity produced relative to the amount consumed differs from the optimal concentration of surplus, the presence of deadweight loss is most commonly identified. A deadweight loss is a societal cost caused by market inefficiency, which occurs when supply and demand are not in balance. Deadweight loss, which is most commonly used in economics, can be applied to any deficiency caused by inefficient resource allocation. A deadweight loss is an economic inefficiency caused by a supply-demand imbalance.To learn more about deadweight losses, refer to:
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if an economy is currently in short-run equilibrium where the level of real gdp is greater than potential output, then in the long run, one will find:
In the long run, an economy that is currently in short-run equilibrium, where real GDP is greater than potential output, will: The economy will return to its potential real GDP if nominal wages rise and the SRAS curve moves left.
When the economy is in short-term equilibrium, what happens?
An economy is in short-run harmony when the total measure of result requested is equivalent to the total measure of result provided.
In the short term, what happens to the price level and real GDP?
The Short-Run Aggregate Supply Curve (SRAS) The SRAS curve indicates that an economy's real GDP will rise as the price level rises and you move along the SRAS.
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business level strategies group of answer choices are concerned with how single business companies choose strategies. pertain to the operation of multiple businesses. include only the generic strategies. are concerned with how companies choose their mixtures of different businesses.
Business level strategies are concerned with how companies choose their mixtures of different businesses.
A business uses its business-level strategy to develop a competitive edge in specific product markets by leveraging its core competencies. It is an interconnected and consolidated succession of engagements and activities. It reveals the choices the business has made in terms of how it intends to compete in particular product markets.
A business-level strategy's secondary objective is to set the firm apart from its competitors. In order to distinguish itself from competitors, a firm must determine if it wants to carry out duties in a unique way or altogether in a new way. This strategy establishes the course that determines the focus of the actions that organization leaders should take.
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gilchrist corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. at the beginning of the most recently completed year, the corporation estimated the machine-hours for the upcoming year at 35,900 machine-hours. the estimated variable manufacturing overhead was $4.80 per machine-hour and the estimated total fixed manufacturing overhead was $945,606. the predetermined overhead rate for the recently completed year was closest to: multiple choice $31.14 per machine-hour $30.14 per machine-hour $4.80 per machine-hour $26.34 per machine-hour
Predetermined manufacturing overhead rate= $31.14 per machine hour.
Estimated the machine-hours= 35,900
The estimated variable manufacturing overhead was $4.80 per machine-hour. The estimated total fixed manufacturing overhead was $945,606.
How to calculate predetermined overhead rate?
To calculate the predetermined overhead rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate=(945,606/35,900) +$4.80
Predetermined manufacturing overhead rate= $31.14 per machine hour
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you have been given a choice of paying $20,000 for a new gm car with a $3,000 cash rebate (net cost of $17,000 which you finance separately), or zero percent financing for 48 months with no cash rebate. what is the implicit rate of interest in this deal?
The implicit rate of interest in this deal is 8.21%.
Cost of item / length of financing
= 20000/48 = 416.67
The implicit rate of interest
End mode
p/yr = 12
PV = (17000)
Pmt = 416.67
N = 48
FV = 0
I = ?
I = 8.21%
An interest rate that is implicit in a business deal is one that is not explicitly expressed. Even if there is no rate specified in the underlying business contract, any accounting transaction involving a stream of payments spread over several future periods must include an interest rate. The market rate ought to be regarded as the most suitable interest rate to deploy to the transaction if a transaction does provide an interest rate but that rate differs significantly from the present market interest rate. If the claimed interest rate is very near to the market rate, the choice of which interest rate to employ is more arbitrary.
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How does the author develop the idea that the current high-tech toilet design may someday be affordable for consumers?.
This is why the nuances of the toilet and bath design are so important—the right floor layout and bath/toilet design guarantee adequate walking space, storage space, and general flow.
What are the features of modern toilets?Modern toilets may incorporate innovative features such as concealed tramways, touchless flushing, one-piece construction, or a removable seat for quick and easy cleaning. In the United States, two-piece toilets with a separate tank that bolts to the bowl are the most prevalent.
Almost all high-tech toilets include a remote control that allows you to operate and customize the toilet's functionality. You can't yet turn on the TV from the bathroom, but you can adjust your Bluetooth music and use bidet functions like the seat warmer.
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1. do we have enough of a loyal following as a local shop that we can attract customers away from starbucks? 2. with the town growing as fast as it is, will other coffee shops decide to locate there?
1. Yes, we have a loyal following of local customers who appreciate our coffee and our shop.
2. With the town growing as fast as it is, other coffee shops may decide to locate there, but we believe that our loyal customer base will continue to support us.
What is customer?
An individual as well as business that purchases goods or services from another company is known as a customer. Customers are crucial to businesses because they generate revenue; without them, they would cease to exist. All businesses compete with one another to draw clients, whether through aggressive product promotion, price reductions to increase clientele, or the creation of distinctive goods and experiences that clients adore. Because satisfied customers are likely to give repeat business to businesses that meet or exceed their needs, businesses frequently uphold the proverb "the customer is always right." As a result, many businesses keep a close eye on their client interactions in order to get input on how to enhance their product offerings. There are numerous ways to classify customers. Customers are typically divided into internal and external categories.
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an independent business segment where the manager is expected to earn profits appropriate for their level of assets would be an example of which type of responsibility center?
This is an example of investment center.A business unit known as an investment center is one that a company uses to make money with its own resources.A typical illustration of an investment center is the financing division of a retailer or vehicle manufacturer.
What are examples of investment centers?A business unit known as an investment center is one that a company uses to make money with its own resources.A typical illustration of an investment center is the financing division of a retailer or vehicle manufacturer. Return on Investment (ROI), Residual Income (RI), and Extra Value Added (EVA) are three commonly used metrics to assess the effectiveness of investment centers (EVA). Offering guidance to governments and businesses on how to address their financial issues is the main objective of an investment bank.Finance, research, trading, sales, wealth management, asset management, IPOs, mergers, securitized products, hedging, and These are two significant and well-liked metrics for evaluating the success of investment centers.They are residual income and return on investment (ROI) (RI).The written-down value of the fixed assets or their gross value may be used to calculate net operating investment. other services are provided by investment banks to their clients. The manager of the investment division is liable for the assets' acquisition costs, revenues, and sales.The performance of the investment division is measured using a variety of methods, including return on investment (ROI), residual income (RI), and economic value added (EVA).To learn more about investment centers refer
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the money demand curve will shift to the left when which of the following occurs? a) a reduction in the interest rate b) an increase in the interest rate c) an open market sale of bonds by the central bank d) an increase in income e) none of the above
The correct option is e. None of the above mentioned statements justify that the money demand curve will shift to the left.
The connection between the cost of an item or service and the amount demanded over a specific time period is represented graphically by the demand curve. The price and quantity demanded are often represented with the price on the left vertical axis and the horizontal axis, respectively. The law of demand states that when the price of a given good rises, the quantity required falls, all other things being equal. This is expressed by the demand curve moving downwards from the left to the right. Notably, this approach suggests that quantity is the dependent variable and price the independent variable.
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what is the rate of return for an investor who pays $1,054.47 for a 3-year bond with an annual coupon payment of 6.5% and sells the bond 1 year later for $1,037.19?
The rate of return for a 3-year bond is 5.00
The rate of return is calculated as:The fee of go back for the investor may be decided the usage of a retaining duration fee of go back bearing in thoughts that the investor could incur a coin's outflow of $1,054.47 while the investor could receive $1,037.19 and an annual coupon of 7% of the face price
Retaining duration return= (promoting charge + annual coupon-buying price)/buying price
Annual coupon=7%*$1000
Annual coupon=$70.00
Holding duration return= ($1,037.19+$70.00-$1,054.47)/$1,054.47
Holding duration return=5.00%
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if the quantity of concert tickets sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve is: group of answer choices unitary elastic. perfectly inelastic. price inelastic. price elastic.
The price elasticity of demand over that range is inelastic. It is because the score for price elasticity is 0,5.
A good's price elasticity of demand can be defined as a measure of how sensitive the quantity demanded is to its price. In the price elasticity method, quantity demanded falls for almost any good when the price rises, but it falls more for some than for others. A price elasticity can be classified into inelastic when the score between 0 and 1. When the score of price elasticity is higher than 1, so it can be classified into elastic.
The formula to calculate price elasticity is:
Price elasticity of demand = %Change in the quantity demand / %change in the price
Price elasticity = 5 % / 10 % = 0,5%
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which statement below is most true? projects ensure the right projects are done. project management, projects, programs, and portfolios are in place to support the strategic business goals of the organization. projects, programs, and portfolios are responsible for outputs and deliverables. portfolio managers ensure the program components are delivered in a coordinated and complimentary manner.
Project management, programs, and portfolios are in place to support the strategic business goals of the organization is the most true statement.
The best way to explain the connection between project management, program, and portfolio management is as follows: A project is a brief undertaking made by a business or organization A program is a collection of projects that are linked or comparable to one another and are frequently handled and directed collectively rather than separately. A portfolio is a collection of various initiatives and/or projects carried out by the same company, whether or not they are related to one another.
It is crucial for project management, and portfolio managers within an organization to comprehend one another's contributions to the accomplishment of a strategic goal in order to be effective. Without this comprehension, there can be unneeded uncertainty and misunderstandings that could cause an initiative to fail before it even gets off the ground.
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despite the fact that conventional mortgages offer fixed payments, some borrowers will select an adjustable rate mortgage over a conventional mortgage because:
Despite the fact that conventional mortgages offer fixed payments, some borrowers will select an adjustable rate mortgage over a conventional mortgage because "the adjustable rate mortgage features lower starting payments".
Adjustable-rate mortgages (ARMs), often known as variable-rate mortgages, feature an interest rate that fluctuates based on changes in a comparable financial index linked to the loan. In general, if the index rate rises or falls, your monthly payment will rise or fall.ARMs, on the other hand, expose borrowers to increased monthly payments once the introductory term expires. The interest rate will then alter at regular periods, usually every year or six months.The ARM can be adjusted. So, while it may start off cheaper, it is not certain to stay that way. In fact, if your interest rate rises, your payments could skyrocket. You may end up with significantly higher overall interest costs than if you had taken out the fixed-rate loan.Thus this is the meaning of mortgage.
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question content areain terms of the tax formula applicable to individual taxpayers, which of the following statements is correct? a.in arriving at taxable income, a taxpayer must choose between the standard deduction and the deduction for qualified business income. b.in arriving at taxable income, a taxpayer must choose between the standard deduction and itemized deductions. c.in arriving at agi, personal and dependency exemptions are subtracted from gross income. d.the tax formula does not apply if a taxpayer elects to claim the standard deduction.
A taxpayer is a natural person or legal entity that must pay taxes. The government may provide identity or reference numbers to individuals or businesses as modern taxpayers. One who pays taxes is often referred to as a "taxpayer".
Who is the tax payer?A taxpayer is anyone who owes taxes to the federal, state, or municipal governments, whether they are an individual or a corporation. Governments primarily obtain their funding through taxes, which are levied on both citizens and companies. Annual income tax obligations varies for people and businesses.A taxpayer is a natural person or legal entity that must pay taxes. The government may provide identity or reference numbers to individuals or businesses as modern taxpayers. One who pays taxes is often referred to as a "taxpayer".People who pay taxes are those who give the government a portion of their income. The tax payer will not be charged for this.An entity that is required to pay taxes to the government is known as a taxpayer.To learn more about tax payer refer to?
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the following operation benefits from appreciation of the firm's local currency: a. borrowing in a foreign currency and converting the funds to the local currency prior to the appreciation b. receiving earnings dividends from foreign subsidiaries c. purchasing supplies locally rather than overseas d. exporting to foreign countries
Option a. borrowing in a foreign currency and converting the funds to the local currency prior to the appreciation benefits from appreciation of the firm's local currency.
A foreign currency is the currency utilized by a foreign u . s . a . as its diagnosed form of monetary alternate. This particular forex is the most effective form of alternate that the relevant authorities lets in for use for getting and selling inside its borders
To favor the trade of budget among unique countries; we can locate nations with excess liquidity and others that need liquidity. To finance worldwide trade, whose transactions constitute a enormous part of the foreign money market.
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north carolina national bank (ncnb) used its unique core competency of identifying, appraising, and integrating acquisition targets to be rebranded as bank of america, one of the largest banks in the united states. this is an example of a firm
One of the largest banks in the united states. This is an example of firm leveraging existing core competencies to improve its current market position.
Competence is the ability to apply or use the relevant set of knowledge, skills and competencies necessary to successfully perform a "critical work function" or task in a defined work environment.
Competence: The knowledge, behavior, attitudes, or even skills that lead to the ability to do something successfully or efficiently. The ability to make business decisions becomes a competency. Skills: Skills acquired and applied to effectively use one's knowledge in execution or performance.
Core competencies also called "core qualifications", are a list of qualifications required for a job. The Core Competencies section includes your skills, qualifications, knowledge of various software products, or personality traits that make you a desirable candidate.
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the average time it takes a business to convert cash to inventory, inventory to accounts receivable, and accounts receivable back to cash is commonly called the
The term "operating cycle" refers to the typical period it takes for a business to convert cash to inventory, inventory to accounts receivable, and accounts receivable back to cash.
What is a company's operating cycle?The number of days it takes for a company to receive inventory, sell it, and get paid for it is referred to as an operating cycle (OC). This cycle has a crucial role in defining a company's efficiency.
What is the typical operating cycle length?The following elements make up the operating cycle: the ratio of inventory turnover to days of sales in inventory (365 days), to the typical amount of time it takes to collect (365 days/accounts receivable turnover ratio)
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The complete question is:
"the average time it takes a business to convert cash to inventory, inventory to accounts receivable, and accounts receivable back to cash is commonly called the _________ cycle.
on september 1, your calendar year company rents a machine to another firm for $24,000 a year. as of december 31, $17,000 has been received and recorded in rent revenue. what adjusting entry do you record at year-end?
Annual rent revenue = $24,000
Rent revenue for 4 months from September to December = 24,000 x 4/12
= $8,000
Rent revenue has been credited by $15,000. Thus, adjusting the entry on December 31 will be as under:
Journal
Dec. 31 Rent revenue 7,000
Unearned rent revenue 7,000
Revenue is the total quantity of financial gain generated by the sale smarts|of products} or services concerning the company's primary operations. Revenue, additionally referred to as gross sales, is usually named because the "top line" as a result of it sits at the highest of the income statement. When examining revenue vs income you must recognize that “revenue” refers to the entire amount of cash an organization generates before removing any expenses.“Income”, on the opposite hand, is up to revenues minus the prices of doing business, equivalent to depreciation, interest, taxes, and other expenses. Revenue and profit are each good signs for your business, but they're not interchangeable terms. each represents a very important thanks to perceive your business. Revenue describes income generated through business operations, whereas profit describes lucre when deducting expenses from earnings.
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which of the following is a deduction for agi? a.child support payments. b.medical expenses. c.loss on the sale of a personal residence. d.contributions to a traditional individual retirement account.
The option that would be the deduction for the AGI would be contributions to a traditional individual retirement account.
What is meant by AGI deductions?This is the term that is used as the acronym that helps in the representation of what is the adjusted gross income. The AGI is the gross income that would be made minus the amount that is the adjustments that have to be made to income.
This has to do with the income of a person the retirement distributions that a person would have as well as the business income.
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student athletes argue that they have the right to form labor unions because they are treated like employees. which of the following, if true, would most likely strengthen this argument? a. student athletes enjoy decision-making powers in team selection processes. b. student athletes do not receive compensation for costs associated with health benefits and utility expenses. c. student athletes work over 40 hours a week in many cases and can be fired for poor performance. d. student athletes represent only one university team until they graduate.
The statement that would most likely strengthen the above argument is
c. student athletes work over 40 hours a week in many cases and can be fired for poor performance.
Labor unions are normally formed by the employees of an organization. Many student-athletes are not allowed to form labor unions because they are not considered employees by certain organizations.
However, such student athletes that work for the same duration like normal employees around 40 hours have can ask for the formation of a labor union.
Also, the organization has the right to fire student athletes for poor performance just as they do for normal employees. As the student athletes are being treated like employees through these factors, they can help in strengthening of their argument.
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The part of staffing that involves seeking out and attracting qualified potential job candidates is called.
Recruitment is the part of staffing that involves seeking out and attracting qualified potential job candidates.
What is recruitment?The entire process of finding, sourcing, screening, shortlisting, and interviewing individuals for positions (either permanent or temporary) within an organization is known as recruitment. The procedures used to select people for unpaid employment are often known as recruitment. Managers, human resource generalists, and recruitment experts may be tasked with conducting recruiting, although in some instances, public employment, for-profit recruitment agencies, or specialized search consultancies are utilized to carry out portions of the process. Artificial intelligence is now frequently used in internet-based solutions that help all elements of recruitment (AI). Recruiting is the process of using one or more tactics to find and attract people to fill open positions.
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martina invested her savings into her business when she started it. later she added more capital, and she has kept some of her profits. together, these are known as a. owners' equity. b. accrued expenses. c. owners' long-term debt. d. debt capital.
Martina invested her savings into her business when she started it. later she added more capital, and she has kept some of her profits. together, these are known as owners' equity.
Owner's equity, also known as net assets, is the owners' claim to the business's assets after all liabilities have been settled. In other words, the surplus funds would be regarded as owner's equity if the company's assets were liquidated to pay creditors. Owner's equity is a general phrase for an equity account, however sole proprietorships are the ones who utilize it the most frequently. While corporations refer to shareholders' equity, partnerships often refer to their equity accounts as members' equity.
The owner's equity formula is made up of a number of different elements. Owner's capital is the long-term account that keeps track of the total balance of withdrawals, contributions, income, and losses. The next few factors will determine whether this balance is good or negative.
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acme inc produces specialized instrument for specific use. the production rate is 789 units per day. annual demand for the instrument is 77,941 units per year. the setup cost for the production run is $723, and the variable cost is $72.18 per unit. acme inc interest rate is 21.08% per year. assume that there are 335 working days per year. what is the proportion of uptime, t1, in days for this specialized instrument?
The uptime ratio in days for this particular tool is 0.2948.
Uptime is the amount of time a system has been operationally sound and available for use. It is a sign of the operating system's and the computing infrastructure's stability and dependability.
The entire demand for all commodities and services in an economy across all marketplaces for specific items is referred to as aggregate demand. The term "available capacity" refers to the area between the required and intended operational capacities.
Uptime ratio = total demand ÷ total available capacity
Total demand = 77941 units per year
Total capacity = daily production rate × no. of days in a year
= 789 × 335
= 264315
Uptime ratio = total demand ÷ total available capacity
= 77941 ÷ 264315
= 0.2948
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the production manager wanted to check the effect of reducing the price of model rdb so that the new contribution to profit is $100 per unit. a colleague said that this cannot be determined using the above output from excel and that the model needs to be re-run with the new contribution profit of $100. do you agree or disagree? explain.
The production manager can assess the model RBD's impact. It has to utilize model RBD for that.
A Reliability Block Diagram is a technique for simulating how the breakdown of one component or subsystem might result in the failure of the entire system. A system's availability may be predicted using reliability block diagram analysis, and the important components can be identified.
Equipment failure rates, operating philosophies, and maintenance strategies can all be quantitatively evaluated in terms of the effect they are anticipated to have on the system using reliability block diagrams (RBDs), which are a way of representing a system, including its subsystems and components, as a series of blocks.
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during the current year, barry (single taxpayer) has taxable income of $60,000. of that amount, $10,000 is long-term capital gain. how will barry calculate the tax on his income?
Considering the above situation of Barry and taxation policy, Barry will calculate his tax on his income by using the tax rate schedule.
What is Tax Rate Schedule?Tax Rate Schedule is a term that is used to describe the rates at which individuals' income is taxable according to their income level and filing status.
Different types of Tax Rate Schedules
As of 2022, the current American tax system policy has various Tax Rate Schedule which includes the following:
10 percent12 percent22 percent24 percent32 percent35 percent 37 percentEach of these percentages varies depending on the category of taxpayers. These categories include the following:
Single filersMarried, filing jointlyMarried filing separatelyHead of the HouseholdUsually, the percentages and income brackets can change from one year to another.
Given their situation of Barry, calculating the tax on his income will be as follows:
Utilizing the tax rate schedule, Barry will have 50,000; then multiply the 10,000 by 15%, and then add the two amounts.
Hence, in this case, it is concluded that the correct answer is using the tax rate schedule.
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all of the following are reasons companies use promotion except multiple choice stabilize sales. stimulate demand. make customers forget about other products. inform customers. reinforce customers.
The reasons companies use promotion are the following except to make customers forget about other products (option C)
What is a promotion?Generally, The term "promotion" encompasses a wide range of activities with the goal of bringing more attention to a product or furthering its standing in the market.
When discussing a person's employment history, the phrase "promotion" refers to the process of elevating an employee's rank or position within a hierarchical structure.
The primary objective of promotion is to raise consumers' awareness of the presence of items and their respective locations in the market.
Promotion may also be used to convince consumers that the product is superior to similar items offered by competitors and to remind them of the reasons they would want to make a purchase.
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todrick company is a merchandiser that reported the following information based on 1,000 units sold: sales $ 330,000 beginning merchandise inventory $ 22,000 purchases $ 220,000 ending merchandise inventory $ 11,000 fixed selling expense ? fixed administrative expense $ 13,200 variable selling expense $ 16,500 variable administrative expense ? contribution margin $ 66,000 net operating income $ 19,800 required: 1. prepare a contribution format income statement. 2. prepare a traditional format income statement. 3. calculate the selling price per unit. 4. calculate the variable cost per unit. 5. calculate the contribution margin per unit. 6. which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in response to changes in unit sales?
Todrick company is a Merchandising that reported the following information based on 1,000 units sold: flow chart is given in image.
What is Merchandising?
Merchandising is any practise that aids in the sale of products to retail customers. At the retail level, merchandising refers to the imaginative display of products for sale in order to attract buyers to purchase additional items or products. Visual display merchandising in retail commerce refers to merchandise sales that use product design, selection, packing, pricing, and presentation to encourage customers to spend more money. This includes disciplines and discounts, physical product presentation and displays, and decisions about which products to present to which customers at what time. In a retail scenario, bringing in similar products or accessories is a wonderful approach to attract customers to buy more. Merchandising aids comprehension of the standard dating notation for invoice payment periods.
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