If average revenue is less than average cost there will be a negative cash flow and the firm will be forced to shutdown. Is this correct? Why or why not?
In: Accounting
What is Internal Revenue Code Section 243 and what are the limitations and purposes?
In: Accounting
What is the Internal Revenue Code Section 245 and what are the purposes and limitations?
In: Accounting
EVALUATING THE EFFECTIVENESS OF REVENUE MOBILIZATION STRATEGIES OF MMDAs IN GHANA. A CASE STUDY OF THE TALENSI DISTRICT ASSEMBLY.
In: Economics
The revenue that is brought in by federal, state and local all have a similar theme. That similar theme is taxes, the only difference is where the people are getting taxed from. For federal revenue it comes from payroll taxes, corporation income taxes and excise taxes. For state level the revenue will come from income and sales taxes. Lastly, local governments can get their revenue from property taxes and sales taxes. The different things that Federal, State and Local governments spend their money on are all going to be different as well. For Federal purposes they spend the revenue on retirements, national defense and then they will also use it to pay down debts that the country accrues. State revenue is spent on education, city maintenance and the overall wellbeing of the people. State and local revenue tends to be spent on similar things, the local government is going to focus on their towns and the needs that the community has. Income taxes and property taxes have gone up and the money from these sources or more heavily depended on than they have been in the past.
Reply to at least 2 of your classmates. Be constructive and professional in your responses.
In: Economics
considering investing in a new piece of equipment that is expected to generate $30,000 of revenue the first year, increasing 15% per year for the 9 year useful life. The salvage value is expected to be 20% of the initial investment. Using a MARR of 10% and an equivalent worth method, determine the maximum your company should pay for the equipment in order for this to be a satisfactory investment.
In: Accounting
1) If a firm lowers the price of its product and as a result total revenue falls, we can conclude that
2) According to Table below, what is the price elasticity of demand (using Midpoint method) when price rises from $8.50 to $9?
|
Price Per Unit |
Quantity Demanded Per Week |
|
$10.00 |
25 |
|
$9.50 |
30 |
|
$9.00 |
35 |
|
$8.50 |
40 |
|
$8.00 |
45 |
|
$7.50 |
50 |
|
$7.00 |
55 |
|
$6.50 |
60 |
|
$6.00 |
65 |
|
$5.50 |
70 |
|
$5.00 |
75 |
3) According to Table below, what is the price elasticity of demand if price falls from $8.50 to $8.00? (Use % change equation only)
|
Price Per Unit |
Quantity Demanded Per Week |
|
$10.00 |
25 |
|
$9.50 |
30 |
|
$9.00 |
35 |
|
$8.50 |
40 |
|
$8.00 |
45 |
|
$7.50 |
50 |
|
$7.00 |
55 |
|
$6.50 |
60 |
|
$6.00 |
65 |
|
$5.50 |
70 |
|
$5.00 |
75 |
4) According to Table below, Michelle's utility schedule is characterized by
|
Quantity per Week |
Michelle |
Robert |
David |
Lauren |
|
0 |
0 |
0 |
0 |
0 |
|
1 |
5.0 |
1,000 |
60 |
60 |
|
2 |
9.9 |
1,900 |
120 |
130 |
|
3 |
14.7 |
2,700 |
180 |
220 |
|
4 |
19.4 |
3,400 |
240 |
310 |
|
5 |
24.0 |
4,000 |
300 |
425 |
|
6 |
28.5 |
4,500 |
360 |
575 |
|
7 |
32.9 |
4,900 |
420 |
900 |
|
8 |
37.2 |
5.200 |
480 |
1,275 |
|
9 |
41.4 |
5,400 |
540 |
1,770 |
In: Economics
Revenue and expense data for the current calendar year for Dawg Electronics Company and for the electronics industry are as follows. Dawg Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.
| Dawg Electronics Company |
Electronics Industry Average |
||||
| Sales | $ 3,750,000 | 100 | % | ||
| Cost of goods sold | (2,062,500) | (61.0) | |||
| Gross profit | $1,687,500 | 39.0 | % | ||
| Selling expenses | $(1,125,000) | (23.0) | % | ||
| Administrative expenses | (262,500) | (10.0) | |||
| Total operating expenses | $(1,387,500) | (33.0) | % | ||
| Operating income | $300,000 | 6.0 | % | ||
| Other revenue and expense: | |||||
| Other revenue | 15,000 | 3.0 | |||
| Other expense | $(3,750) | (1.0) | |||
| Income before income tax | $ 311,250 | 8.0 | % | ||
| Income tax expense | (93,750) | (2.5) | |||
| Net income | $217,500 | 5.5 | % | ||
a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place.
| Dawg Electronics Company | |||
| Common-Sized Income Statement | |||
| Dawg Electronics Company Amount |
Dawg Electronics Company Percent |
Electronics Industry Average |
|
| Sales | $3,750,000 | % | 100.0% |
| Cost of goods sold | (2,062,500) | % | (61.0)% |
| Gross profit | $1,687,500 | % | 39.0% |
| Selling expenses | $(1,125,000) | % | (23.0)% |
| Administrative expenses | (262,500) | % | (10.0)% |
| Total operating expenses | $(1,387,500) | % | (33.0)% |
| Operating income | $300,000 | % | 6.0% |
| Other revenue and expense: | |||
| Other revenue | 15,000 | % | 3.0% |
| Other expense | (3,750) | % | (1.0)% |
| Income before income tax | $311,250 | % | 8.0% |
| Income tax expense | (93,750) | % | (2.5)% |
| Net income | $217,500 | % | 5.5% |
In: Accounting
SHOW HOW A FIRM CAN MAXIMIZE TOTAL REVENUE BY PRICE DISCRIMINATING
In: Economics
As a business owner it is important to understand not only how much
revenue you are making but also the profit that is being
realized. Part of this process is to understand contribution
margin, break-even point and operating income.
This assignment has 4 parts:
What is taken into consideration to figure out the
contribution margin?
How is the break-even point determined?
What is needed to determine the operating
income?
Would the contribution margin, break-even point and
operating income change if the compensation method for employees is
modified?
In: Accounting