Answer:
Net Income $66100
Explanation:
<u>Racine Furnishings Company </u>
<u>Multi Step Income Statement </u>
<u>For the Year Ended March 31, 2019</u>
Sales 6,126,850
Cost of Merchandise Sold 3,965,850
Gross Profit 2161000
Less Operating Expenses
Depreciation $747,950
Supplies Expense ( 87000- 20650) 66350
Salaries Expense 7,700
Selling Expenses 717,650
Administrative Expenses 545,700
Operating Income 75,650
Other Expenses
Interest Expense 9,550
Net Income $66100
From the sales cost of merchandise sold is subtracted to get the gross profit. The operating expenses are subtracted from the gross profit to get the operating income. Other expenses such as interest expense is subtracted to get the net income.
Answer:
Continue operating; $699
Explanation:
The equilibrium price is $10.
MR = MC at 233 units of output.
At this output level, ATC is $12, and AVC is $9.
The AFC or average fixed cost
= ATC - AVC
= $12 - $9
= $3
The total fixed cost
=
=
= $699
The equilibrium price is able to cover the average variable cost so the firm should continue production in the short run.
Answer:
Benefit: 10,000
Explanation:
Salaries terminated: 390,000
decrease in misc overhead 30,000
outsourcing tariff: (410,000)
Benefit: 10,000
The most questions most important issue is how to account the 120,000 assistant and the fixed cost that will be allocate to other department.
The truth is, this are not relevant cost.
As the company would hire this assistant in the near future if the H/R is not outsource as the company won't keep them if they aren't useful.
Also the allocate cost are cost from other operations not related to human resources. So ust be disregard from the calcualtion.
We should consider only the explicit decrease, which are the salaries and fewer tracable overhead.
In a free port, there are few if any taxes placed on good unloaded from other countries. Free port means is called as bonded area. This area have lesser custom regulation that's why fewer taxes is charged on the goods.
Use the formula of the present value of an annuity ordinary to find the monthly payment
The formula is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv present value 14000
PMT monthly payment?
R interest rate 0.07
K compounded monthly 12
N time 4years
Solve the formula for PMT
PMT=pv÷[(1-(1+r/k)^(-kn))÷(r/k)]
PMT=14,000÷((1−(1+0.07÷12)^(
−12×4))÷(0.07÷12))
=335.25
Total payments
335.25×12 months×4years
=16,092
Total amountof interest
16,092−14,000
=2,092
Hope it helps!