Answer:
It will remain at the same level.
Explanation:
the contribution margin will be the same.
Because under variable cost, we only focus on the variable cost to determinate the unit cost. Which doesn't change at unit level.
contribution margin = sales - variable cost.
<u>If we use absorption cost,</u> the <u>cost would decrease</u>, because the fixed cost are distribute over more units. <u>This will increase the income</u>. However this is not the case.
Answer:
8.9
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid = d0 x (1 +g)
r = cost of equity
g = growth rate
50 = [4 x (1 +g)] / (0.18 - g)
50(0.18 - g) = 4(1 +g)
Answer:
Cash $1,050 (debit)
Accounts Receivable :Sun City Kiwanis $1,050 (credit)
Explanation:
When Kiwanis makes a partial payment to settle their account, in Trails Ends records, we recognize (1) an the increase in the assets of cash and (2) recognize a decrease in the assets of accounts receivable.