The following income statement is for X Company's two products, A and B:
| Product A | Product B | |||
| Revenue | $86,000 | $95,000 | ||
| Total variable costs | 51,600 | 55,100 | ||
| Total contribution margin | $34,400 | $39,900 | ||
| Total fixed costs | ||||
| Avoidable | 13,182 | 30,206 | ||
| Unavoidable | 12,168 | 21,874 | ||
| Profit | $9,050 | $-12,180 | ||
If X Company drops Product B because it shows a loss and is able to
use the vacant space to increase sales of Product A by $31,500,
with $4,000 of additional fixed costs, what will be the effect on
firm profits?
In: Accounting
Given the following, calculate the cash flows for the project.
Answer the following:
What are the cash flows for each year?
In: Finance
A cement manufacturer has supplied the following data:
| Tons of cement produced and sold | 262,000 | |
| Sales revenue | $ | 1,179,000 |
| Variable manufacturing expense | $ | 431,000 |
| Fixed manufacturing expense | $ | 228,000 |
| Variable selling and administrative expense | $ | 93,000 |
| Fixed selling and administrative expense | $ | 218,000 |
| Net operating income | $ | 209,000 |
What is the company's unit contribution margin? (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$2.00 per unit
$0.52 per unit
$4.50 per unit
$2.50 per unit
In: Accounting
Choose two (2) set of financial statements of two companies of UAE for the same latest financial year from similar industries, which are publicly available (online), and:
1. Recognize and describe the main items in the Income Statement, Statement of owner’s equity, and the Statement of Financial Position (Balance Sheet).
2. Compare and contrast the Asset/Liability/Equity/Revenue/Expenses between the two set of financial statements.
3. Outline the possible reasons for the differences of the above items in the two companies’ financial statements (use table and diagram as needed).
In: Accounting
Domicile is a smart way of taxing individuals in my opinion. Especially rich individuals who own several homes or for people who have international income or work overseas but live in the U.S. As the article makes clear, there are still some boundary issues regarding the classification of domicile and in some areas there is a blurring of the lines. There are many sufficient rules to rule domicile but the IRS should try to fix this and avoid more situations like “Fowler vs North Carolina Department of Revenue”.
QUESTION: DO YOU AGREE WITH THE ABOVE STATEMENT? EXPLAIN
In: Accounting
Part 1: Pricing Strategy
Briefly describe pricing for your product or service for non for profit youth program. How does this compare to competitors, assuming competitors are at or near break-even point with their pricing? Analyze pricing alternatives and make recommendations about pricing going forward based on the following:
What does the price say about your product in terms of value, quality, prestige, etc.?
In: Operations Management
The following relates to Kim’s Karate Pty Ltd for the year ending 31 March 2020: Required: Prepare an Income Statement. Marks will be deducted for including items that do not belong. Rent Expense 36,000 Equipment 72,000 Prepaid Insurance 14,000 Salaries Expense 113,500 Cash at Bank 23,000 Telephone Expense 4,500 Service Revenue 269,500 Advertising Expense 12,000 Wages Payable 11,500 Depreciation- Equipment 23,000 Supplies Expense 54,000 Electricity Expense 15,000 Accumulated Depreciation- Equipment 76,000
In: Accounting
This activity will demonstrate the concepts of long-run expansion, no expansion but continue to operate, and shut down immediately.
For cases A through F in the following table, would you (1) operate or shut down in the short run and (2) expand your plant or exit the industry in the long run?
| A | B | C | D | E | F | |
| Total revenue | 2,500 | 1,000 | 4,000 | 4,400 | 3,000 | 6,000 |
| Total cost | 2,500 | 500 | 5,000 | 4,500 | 5,000 | 5,000 |
| Total fixed cost | 500 | 100 | 1,250 | 300 | 1,250 | 1,250 |
In: Economics
Alyssa is a wholesale flower distributor. She sells her flower to all the finest florists in town. Nobody has flowers as beautiful as Alyssa's. As a result, hers is the only business in town that sells flowers to florists. Assuming that Alyssa is maximizing her profit, which of the following statements is true?
A) Flower prices will exceed marginal cost
B) Flower prices will be less than marginal revenue
C) Flower prices will be less than marginal cost
D) Costs are irrelevant to Alyssa because she is a monopolist
In: Economics
The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA)
Analyze the organization by identifying the sub-industry or type of organization it belongs to (e.g., home care, hospital) and the financial background of the organization.
Is the organization you selected a nonprofit or for-profit?
Finally, considering the sub-industry your organization belongs to, what kind of impact do the economic principles of demand and market/consumer behavior have on this organization’s financial statements?
For example, do the statements reflect a spike on revenue during the winter due to increased injuries and accidents related to ice?
In: Economics