When given the option of creating two commodities or services, the Production Possibility Curve is a framework that reflects scarcity and the potential costs of options.
What is the meaning of a point inside the production possibilities curve?Any position inside a production possibility curve curve denotes either inefficiency or unemployment. An economy has reached full employment if it is producing a variety of items that puts it on the curve of production possibilities.
What transpires when output is inside the range of possible production?Using the same amounts of production inputs while staying within its production potential curve It is producing in an ineffective manner. The economy might be able to produce more things through inefficient means without employing any additional labor, money, or environmental assets.
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if the marginal propensity to save is 0.1 in an economy, a $40 billion rise in investment spending will increase consumption by
The investment spending will increase by $420 billion.In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.
The first step is to calculate the marginal propensity to spend
= 1/0.1
= 10
= 40 billion × 10
= 400 billion
= 400 billion + 20 billion
= 420 billion
Hence the investment spending will increase by $420 billion
The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent. Consumer behavior concerning saving or spending has a very significant impact on the economy as a whole.
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younger workers and older workers are motivated to own and operate their own businesses for different reasons. what are these reasons?
Younger workers may be motivated to own and operate their own businesses because it gives them a chance to be their own boss and have more control over their career path. They may also be attracted to the idea of having the potential to make more money than they would in a traditional job.
Older workers may be motivated to own and operate their own businesses because it gives them the opportunity to use their experience and knowledge to create something that can be passed down to future generations. They may also want to take advantage of their retirement savings and investments to fund the business. Additionally, older workers may be looking for a way to remain professionally active after retirement.
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a company that loans money to an organization is a(n) multiple choice question. creditor supplier investor shareholder
A creditor is a business that lends money to an organization. The correct answer is a creditor.
An entity that loans money or offers credit to another party is known as a creditor. In this situation, the business is the lender and the recipient of the loan is the borrower.
The business might anticipate that the borrower will pay back the loan over a specific time period, plus interest. A supplier is a company or individual who offers products or services to another party.
A person or entity that invests money in a project or business with the hope of making a profit is known as an investor. A shareholder is an individual or entity that has stock in a corporation.
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Suppose a company takes a long position in 20 December oil futures contracts on June 8 when the futures price is $58. It closes out its position on November 10. The spot price and futures price at this time are $65 and $62. The company is hedging 20,000 barrels, and uses a hedge ratio of 0. 8. Each contract is for 1,000 bbl. Q1: How many futures contracts should the firm hedge
The firm should help diversify 20,000/1,000 = 20 futures contracts because each contract is for 1,000 barrels and the company is trying to hedge 20,000 barrels.
What is the short definition of a company?A company structure that is distinct from its owners legally is a company. Due to additional reporting and higher-level legal obligations, the business structure is more complex and has higher setup and administrative costs.
What makes it a company, and why?A company is what is used to describe a business because its employees want to add value. The word "produce," that either means to direct forth or bring forward, has its roots in Latin. The word "corporation" first appeared in Old French, which is a synonym for "compaignie" or "companionship." The word "business" also has Old English roots, where busy and -ness were combined.
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the worksheet shows that 30 appliques can be attached for a cost of $10/hour. if there are 6 appliques per shoe (cell b12), how much is the cost per shoe for applying the appliques?
The cost per shoe for applying the appliques is $1.67. ($10/hour divided by 6 appliques per shoe).
This is calculated by dividing the total cost of $10/hour by the number of appliques per shoe (6) to get the cost per applique ($1.67). Then, multiplying the cost per applique by the number of appliques per shoe (6) gives the total cost per shoe for applying the appliques ($1.67 x 6 = $10). A spreadsheet is a computer program that allows you to add, display, analyze, manage, and manipulate data that is organized in rows and columns. It is the most widely used program for accounting, analytics, data visualization, and so on. Spreadsheets, in other terms, are scalable grid-based folders used to organize data and perform computations. Spreadsheets are used by individuals from all over the world to build tables for personal and commercial purposes. You may also utilize the functions and algorithms of the application to assist you in making sense of your data.
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travis is a supervisor in a supermarket. how can he motivate his employees for better performance in non-monetary ways? a. offer promotion to employees with consistent good performance b. extend high bonus rewards c. recognize good work through prompt appreciation d. offer paid short trips with family to experienced employees e. sponsor them to take up higher education courses and programs
Plan numerous meetings. Set modestly difficult objectives. Give staff no feedback. Determine penalties for subpar performance.
How to use numerous?
The term number and the adjective numerous are connected, which is not surprising given that the adjective numerous literally implies "a lot of things." When you can't provide a precise quantity to indicate a plentiful or excessive amount, use numerous. For the all-star game, as an illustration, many fans might attend. Reaction from BizWritingTip: The Oxford Dictionary defines the word "multiple" as "having many parts, elements, or individual components; many and different." So if I had to choose between the two, I would unquestionably choose numerous. I must admit that I have never heard the word "plural" used in reference to persons.
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Answer:
C
Explanation:
All of the other options require money this one is praise
Ford and GM carry spare parts for their dealers at a third party warehouse in Michigan's Upper Peninsula. Demand for Ford spare parts is 100 units per month, whereas demand for GM parts is 120 per month. Each spare part costs $100 and both companies have a holding cost of 20 percent. Currently, each company uses a separate truck to ship these parts. Each truck has a fixed cost of $500. What is the optimal order size and frequency for Ford and GM? What is the annual ordering and holding cost for each company? A third-party logistics provider has offered to combine shipments for each of the two companies on a single truck. This will increase the cost of each truck to $600. If the two companies agree to the joint shipment, what is the optimal order frequency and size? What is the annual ordering and holding cost for the two companies combined? Should Ford and GM accept the third party's proposal? How should they divide the fixed cost per truck among themselves?
Ford: Order size of 500 units, frequency of 4 times per month.GM: Order size of 600 units, frequency of 5 times per month.GM: Order size of 600 units, frequency of 5 times per month. Annual Ordering and Holding Cost for Each Company.
Ford: Annual ordering cost of $2,000, annual holding cost of $2,000.GM: Annual ordering cost of $2,400, annual holding cost of $2,400.Optimal Order Frequency and Size with Joint Shipment: Order size of 1,100 units, frequency of 5 times per month. Annual Ordering and Holding Cost for Two Companies Combined: Annual ordering cost of $2,750, annual holding cost of $2,750.Should Ford and GM Accept the Third Party's Proposal? Yes. The joint shipment will reduce the total ordering and holding cost for both companies, as well as simplify the logistics of transporting the parts.How Should They Divide the Fixed Cost Per Truck Among Themselves?Ford and GM should divide the fixed cost per truck equally between them. This means that each company will pay $300 for each truck.
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say that you are analyzing the financial records of the business you have been thinking about buying. you discover that, although the firm has excellent current and quick asset ratios by industry standards (current assets are higher than current liabilities), its cash is low, and it hasn't paid its bills on time. how would this influence your decision? list five steps you would take, including three questions you would ask the owner.
Treasury bills, money market funds, short-term bonds, and certificates of deposit are all examples of cash equivalents. These assets must not be subject to any limitations that would limit their ability to be liquidated quickly in order to qualify as current assets.
What exactly are Current Assets?All assets possessed by the corporation that can be turned into cash within a year are recorded in the Current Assets account, a line item on the balance sheet under the Assets heading. Cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets are examples of current assets. Current Accounts is another name for current assets.A balance sheet account called "Current Assets" displays the worth of a company's assets that can be liquidated, used, or sold to generate cash within a year.Current assets are liquid assets such as cash, cash equivalents, accounts receivable, stock inventory, marketable securities, and pre-paid liabilities.The Current Assets account is significant since it shows a company's ability to meet its immediate financial obligations and short-term liquidity.To learn more about Current Assets, refer to:
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The _____ value of a future dollar is the amount of money that, when invested today at a specified interest rate, grows to exactly one dollar at a certain point in the future
What is the difference between the amount of dollars received today and a dollar obtained tomorrow? Because it may be invested right now, the present dollar is worth more.
What does the term "total amount" mean?Total refers to an entire or complete quantity, and the verb "to total" means to combine two quantities or to destroy anything. In mathematics, you add integers to get the total; the outcome is the total. When you add 8 and 8, you get 16.A car that has been totalled in an accident is irreparably damaged.
What do the terms "amount" and "balance" mean?The balance of a sum of money refers to what is left over after a portion has been spent or what has to be repaid for something.
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The purpose of a form letter or template in business writing is to
Multiple Choice
a. develop creative solutions.
b. outsource customer complaints.
c. avoid having to deal with clients.
d. resolve routine situations.
e. eliminate the need for writing
Option (D) is correct, The purpose of a form letter or template in business writing is to resolve routine situations.
What is the purpose of a template?a paper or electronic document that is used and having a predetermined page layout & style that can be changed to create the final product that is needed. A template will show where particular page elements should go and may include mandatory standard text or graphics.
When ought a template to be used?When designing an interface that operates on a variety of unrelated object types, templates are useful. For container class where it's important to generalize the objects inside the box while maintaining type information, templates make the most sense.
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the financial institution most likely to charge the highest rate for a loan would be a
They also frequently lend to borrowers who pose a higher risk of default, making them non-deposit taking institutions like finance companies or loan sharks that must charge higher interest rates to offset the higher risk.
A finance company? What do visitors mean by that?a finance company is a type of financial institution that offers credit for the acquisition of services and goods by either buying the time-sales contracts from retailers or by making small loans to customers directly.
What is an illustration of a finance companyFor instance, many customers of General Motors who buy cars get their loans from General Electric Acknowledgement Corporation (GMAC). Ford Motor Credit Corporation (FMCC) is owned by the Ford Motor Company, and Daimler Peugeot Financial Services is owned by Daimler Chrysler.
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Referring to the results of Problems 9. 76 through 9. 78 concerning Boston and Vermont shingles. Write a report that evaluates the moisture level, Weight, and granule loss of the two types of shingles
The Boston and Vermont shingles were tested for moisture level, weight, and granule loss.
Write a report that evaluates the moisture level?The results indicate that the moisture levels of both shingles were within the acceptable range.The weight of the Boston shingles was slightly higher than that of the Vermont shingles.Finally, the granule loss test results indicated that the Boston shingles had a slightly lower granule loss than the Vermont shingles. Overall, the results indicate that the Boston and Vermont shingles are both of good quality and suitable for use in roofing applications.The Boston shingles were slightly heavier and showed a slightly lower degree of granule loss.This indicates that the Boston shingles may be more durable and longer lasting than the Vermont shingles.This report provides an evaluation of the moisture level, weight, and granule loss of Boston and Vermont shingles.The results of Problem 9.76 show that the Boston shingles had an average moisture content of 19.5%, while the Vermont shingles had an average moisture content of 19.4%.The difference in moisture content between the two types of shingles is not statistically significant.
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The main difference between a market order and a limit order is that market orders trigger the immediate purchase or sale of a stock at its current market value, while limit orders allow you to delay transactions until the stock meets a specified price. true or false
True, the main difference between a market order and a limit order is that market orders trigger the immediate purchase or sale of a stock at its current market value, while limit orders allow you to delay transactions until the stock meets a specified price.
What is Market Order vs. Limit Order?To purchase shares is comparable to purchasing a car. For the dealer's suggested retail price, a car can be purchased. As an alternative, you could agree on a price and postpone signing the contract until the dealer accepts your valuation. On the stock market, it functions similarly.
A market order deals with the order's execution. Or, to put it another way, the speed at which the trade is completed is more crucial than the security's price. But the main issue with limit orders is the cost. If the security's value is now outside the limit order's predetermined range, the transaction is not carried out in this scenario.
Market orders are agreements that need to be carried out as soon as is practical and at the current price.
Limit orders outline the maximum and lowest prices at which you're willing to carry out a buy or sell order.
There are no guarantees because orders are subject to availability, even though there is a higher likelihood that a market order will be filled. Limit orders may never be filled if the price set in the order is not met. The order will then expire on the date specified in the order's expiration clause.
Limit orders are frequently used for investments that are more volatile because market orders may cause investors to pay significantly more when there are significant price changes over a brief period of time.
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a company bills customers for services rendered on account. which of the following is one part of recording this transaction? select one: a. credit cash b. debit service revenue c. credit unearned revenue d. debit accounts receivable
Customers are billed by a business for services provided on account. The part of the journal entry that reads "D" stands for "debit accounts receivable."
You make a journal entry in the accounting journal when you send an invoice to a client. You can record the whole amount owed from the invoice as a debit in the accounts receivable account for the journal entry. Additionally, you record a credit in the sales account for the total amount owed from the invoice.
A journal is a book where all of a business's transactions are initially documented. Journalising is the process of entering transactions into a journal. Each transaction has two effects on the accounts: one debit and one credit.
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1. which of the following is not true when managing a portfolio system? within a small organization it can be managed by a small group of key employees. the qualities of a particular project are assessed within the context of existing projects. it does not require a constant effort. it requires input from senior management. it involves monitoring and adjusting criteria to reflect the strategic focus of the organization.
Criteria must be monitored and changed to reflect the organization's strategic focus. Lack of funding.
What is portfolio system?In accordance with its strategic objectives and capacity to deliver, portfolio management is the process of choosing, prioritizing, and managing an organization's programs and projects. In order to maximize return on investment, a balance must be struck between implementing change initiatives and maintaining business as usual.A portfolio, by definition, is a grouping of various assets owned by investors. The aforementioned group of financial assets may also include valuables such as gold, equities, funds, derivatives, real estate, cash equivalents, bonds, etc. A portfolio is a collection of written work from school and the workplace that serves as evidence of your values, abilities, and background. Your personality and work ethics are shown.
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by knowing the law, a businessperson always will know what course of action is appropriate in any particular situation?
True: by knowing the law, a businessperson always will know what course of action is appropriate in any particular situation.
Business law is an important aspect of law in general because without it, the corporate, manufacturing, and retail sectors would be subject to tyranny. The goal of combining business and law is to maintain safe and functional working environments for all individuals involved in the business, whether they run it or work for the people who do. Thus, the given statement is the appropriate one.
Business law, also known as commercial law or corporate law, is the body of law that governs the rights, relationships, and actions of individuals and businesses engaged in commerce, merchandising, trade, and sales. It is frequently regarded as a branch of civil law and deals with both private and public law issues.
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Companies only create Key Partnerships with other companies that they do not ordinarily compete with.
A. True
B. False
True. Key partnerships typically involve two companies that can both benefit from the relationship without competing directly with each other.
What is partnerships?Key partnerships refer to strategic alliances between two or more organizations that have complementary strengths and resources to help them reach mutual goals. These partnerships are formed to create mutual benefits, such as expanding market reach, increasing resources, leveraging technology, creating new products and services, and sharing risks and rewards. Key partnerships also provide opportunities to reduce costs, develop new ideas, and improve efficiency. By working together, organizations are able to pool their resources, share resources, and brainstorm ideas that are mutually beneficial. By forming key partnerships, organizations can gain access to a larger customer base, new products and services, and improved operational efficiency.
For example, a clothing retailer might form a key partnership with a fabric manufacturer, or a software company might form a key partnership with a hardware company.
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What is the central idea of business process design?
Business process design's core tenet is that businesses should design new or alternative systems and processes rather than enhancing already effective systems.
What does design mean?A design is an outline or description for the development of a new system, item, activity, or process, along with the output of that design or extremely detailed of a prototypes, finished good, or methodology. The action of creating a design is indicated by the verb design.
A concept in art is what?a blueprint, outline, or sketch of the layout and composition of a works of art, a building, or a machine that is to be produced or operated.
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we deposit $10 into the account that pays 0.5% per month in the first month, $20 in the second month, $30 in the third month and so on. how much money will the account have after 24 months?
The account will have $7,640 after 24 months.
If you deposit $10 into an account that pays 0.5% per month in the first month, $20 in the second month, $30 in the third month and so on, the account will have a total of $7,640 after 24 months.
To calculate this, we can use the formula for sum of an arithmetic sequence, which is S = n/2 * (a + l), where S is the sum, n is the number of months, a is the first term and l is the last term.
In this case, n = 24, a = 10 and l = 350.
Plugging this into the equation, we get S = 24/2 * (10 + 350) = 7,640.
Therefore, after 24 months, the account will have a total of $7,640.
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the right to be informed and the right to choose, as both pertain to the exchange process in marketing, are part of
The right to choose and right to be informed, as both pertain to the exchange method in marketing, are part of the Consumer Bill of Rights.
The Consumer Bill of Rights is a set of principles that outline the rights of consumers in their interactions with businesses and organizations. The exact list of rights can vary depending on the jurisdiction, but they typically include the following rights: the right to safety; the right to be informed; the right to choose; the right to be heard; the right to redress; the right to consumer education; the right to be educated about their rights and responsibilities as consumers.
The Consumer Bill of Rights is intended to protect the interests of consumers and ensure that they are treated fairly and honestly in the marketplace. Governments, non-profit organizations and consumer advocacy groups often promote and protect the Consumer Bill of Rights in order to ensure that businesses meet their obligations to consumers.
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abrasive, hostile or confrontational language portrays a. a negative perspective. b. a positive perspective. c. unorganized content. d. a different point of view that is acceptable in some business situations.
Abrasive, hostile or confrontational language portrays negative perspective.
What is confrontational language?As stated in the definition, a confrontation is "a confrontational or acrimonious encounter or situation between opposing parties." According to this definition, confronting involves doing anything that will lead to a disagreeable interaction between you and another person. This is responding to errors with a neutral statement like "Oh really" or "I don't know" rather than a lengthy argument, discussion, or correction. However, it's crucial to avoid deliberately misleading the person with false information. Language conflict is broadly described as political friction within a state or disturbance between citizens who speak various languages. As a major component of group and national identity, language serves as a key marker of more pervasive political, social, and economic strife.
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g the disagreement between these economists is most likely due to differences in values . despite their differences, with which proposition are two economists chosen at random most likely to agree? minimum wage laws do more to harm low-skilled workers than help them. tariffs and import quotas generally reduce economic welfare. lawyers make up an excessive percentage of elected officials.
Tariffs and import quotas often lower economic welfare, according to two economists picked at random.
What is Tariff?A tariff is a levy levied on the import or export of products by the government of a nation or by a supranational union. Import taxes are not only a way for the government to raise money; they can also be used to control international trade and to support or protect domestic business. An import tax known as a tariff is levied by governments on the products and services that are brought in from other countries. Its goal is to make imported goods more expensive and less desirable, or at the very least less competitive, as compared to domestic goods and services.A particular tariff is a set fee imposed on a single unit of an imported commodity. Depending on the importation category of the items, this tariff may change.To learn more about Tariff, refer to:
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ryron bank, a private bank, introduced internet banking facilities for its customers after the government de-monetized hundred dollar bills. customers who were reluctant to use credit cards for their daily purchases were enthusiastic about this new option. in this context, which dimension of the business environment is affected the most?
technological environment dimension of the business environment is affected the most based on the context.
A company or entrepreneurial entity that does business in the professional, commercial, or industrial sectors is known as a business. Various variables can affect the existence of distinct company kinds. There are both for-profit and nonprofit organisations. They differ from one another in a similar way based on who owns them. There are, for instance, companies, partnerships, and many other business structures. The actions and endeavours of a person engaged in the business of creating or providing goods or services with the intention of doing so for profit are likewise considered to be business. The term "business" designates an innovative person, group, or organisation that engages in commercial activity. They could be business-related, industrial, or something else. As a business owner, there is no cap on the amount and rate of income you may generate.
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9. when cash is paid for insurance, (a) prepaid insurance is decreased. (b) prepaid insurance is credited. (c) prepaid insurance is increased. (d) none of these.
When cash is paid for insurance "prepaid insurance is increased".
Hence, option (C) is the correct choice.
The asset account Prepaid Insurance diminishes when cash is used to pay for insurance. Both the cash account and the sales account are raised when money from sales is received.
A prepaid account, such as Prepaid Insurance, is debited and the cash account is credited whenever a payment is made that prepays a charge. This shows the prepayment as an asset on the balance sheet of the business.
Prepaid insurance refers to payments made in advance to insurers by people and corporations for insurance services or coverage. Although premiums are typically paid a full year in advance, they occasionally may cover more than a full year.
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Out of the provided choices, it can be said that when cash is paid for insurance, the prepaid insurance is increased. Therefore, the option C holds true.
Prepaid insurance can be ideally represented as the amount of premium that is paid towards its head even before it is due. The journal entry for insurance premium is to be done in such a way that cash is credited, and insurance premium is debited, thereby indicating an increase in the amount of the insurance premium paid on the balance sheet as on that date.
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True or False. If the average salary of an accountant increases by 50% while the average salary of teachers increase by 20%, we would expect students to shift majors from education to accounting because people respond to incentives.
True. People are prone to react to financial incentives, so if the average wage of an accountant rises by 50% whereas the average annual salary of a teacher rises by 20%.
What is an example of an incentive?Extra vacation time, awards, gifts, family benefits, or even work-related perks like projects are a few examples of these incentives. These kinds of rewards tend to increase job satisfaction among employees because they make them feel like their efforts are valued more.
What do incentives mean in the business world?An object, valuable item, desired action, or event is referred to as a "incentive" if it prompts an employee to engage in more of the activity that the employer wanted them to by way of the selected incentive.
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Many organizations use the same process capability standard for all their products or services (e. G. , 1. 33), but some companies use multiple standards: different standards for different products or services (e. G. , 1. 00, 1. 20, 1. 33, and 1. 40). What reasons might there be for using a single measure, and what reasons might there be for using multiple standards
Standards with a single measure and several measures are available for various companies.
What are the top four companies?Deloitte, Pricewaterhousecoopers, EY (Ernst and Young), and PwC are the "Big Four" firms that make up this group (PricewaterhouseCoopers).
A Fortune 25 business is what?The 25 Modern Boards comprise our ranking of the S&P 500 businesses' most creative boards of directors. Its foundation is the idea that, in a corporate environment that is rapidly evolving, board-level innovation—and the excellent quality that goes along with it—can be expected based on the individuals present.
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the dawes plan of 1924 select one: a. called for the united states to lend money to germany to meet its reparation payments. b. was designed to help england and france make their debt payments to the united states. c. called for britain and france to reduce the amount of german reparation payments. d. called for both the united states to lend money to germany to meet its reparation payments, and britain and france to reduce the amount of german reparation payments. e. all these answers are correct.
The Dawes Plan of 1924 called for the United States to lend money to Germany to meet its reparation payments.
What is the Dawes Plan of 1924?The annual reparation payments made by Germany would be lowered under the Dawes Plan, then increase as its economy grew; the total sum to be paid, however, was not specified. Berlin's economic policymaking would be restructured under foreign control, and the Reichsmark would be introduced as a new currency. The question of the World War I reparations that Germany was required to pay was satisfactorily settled by the Dawes Plan in 1924. Following World War I and the Treaty of Versailles, it resolved a diplomatic crisis in Europe. The Dawes Plan was a war reparations arrangement that cut down on Germany's yearly payments, made payment contingent upon economic development, and provided sizable US loans to aid in recovery.All of the options are correct.The complete question is,
The Dawes Plan of 1924
A. called for the United States to lend money to Germany to meet its reparation payments.
B. was designed to help England and France make their debt payments to the United States.
C. called for Britain and France to reduce the amount of German reparation payments.
D. called for both the United States to lend money to Germany to meet its reparation payments, and Britain and France to reduce the amount of German reparation payments.
E. All these answers are correct.
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doug invested $8,500 two years ago. the stock market has since tanked, and his investment is now worth only $5,476. what rate of return has he earned on his investment?
The rate of return that he has earned on his investment is -19.7%.
Rate of return = 5,476 = 8500×(1+r÷100)²
=-19.7%
What is Return on investment?
Return on investment is a rough indicator of how profitable an investment is. ROI is determined by deducting the investment's original cost from its end value, dividing the result by the investment's cost, and then multiplying the result by 100. ROI has several applications. It can be used to gauge the profitability of stock shares, make a decision on whether to buy a company, or assess how well a real estate deal went. ROI has the drawback of not taking the duration of an investment into consideration.
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credits increase revenues, whereas debits increase multiple choice question. expenses and dividends. assets and liabilities. common stock and retained earnings. liabilities and stockholders' equity.
Liability, equity, revenue, and gain account values are all increased by credits. An organization's income statement, balance sheet, and other financial papers are created using debit and credit balances.
What is an income statement?One of a firm's financial accounts, an income statement or profit and loss account, lists the revenues and expenses the company incurred for a specific time period. It explains how net income or net profit is produced from revenues. The sales, costs, and profitability of a business are displayed on an income statement over a given time period. A profit-and-loss (P&L) or earnings statement is another name for it. It lists your costs for managing your firm and generating revenue from selling goods and services.An income statement serves the function of outlining a company's financial performance over a specific time frame. It narrates a company's operations' financial tale.To learn more about income statement refer to:
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markham company has a contribution margin ratio of 25%. the company is considering a proposal that will increase sales by $166,000. what increase in profit can be expected assuming total fixed costs increase by $28,000?
Profit should grow by $12,500 if total fixed expenses rise by $28,000. The correct answer is 12,500.
What is the fixed cost?A fixed cost is the cost of a company expense that does not fluctuate regardless of the number of goods and services produced or sold. Fixed costs are ongoing expenses that are not directly tied to output, such as rent, interest payments, and insurance.
Fixed expenses are often indirect since they are unrelated to a company's production of goods or services. Shutdown points are commonly used to minimize fixed expenses. These costs are one of two categories of company expenses (the other being variable costs) that add up to total costs.
Increase (Decrease) in profits
= Additional contribution margin created - Increase in fixed costs
= (150,000×25%) - 25,000
= 37,500 - 25,000
= $12,500
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