Answer:
Income Statement
Revenue $24,698
Expenses
Salaries and employee benefits $8,815
Purchased Transportation $1,203
Fuel Expense $3,228
Rental and landing fees $1,748
Depreciation Expense $925
Maintenance and repairs expense $1,573
Provision for income taxes $805
Other expense (revenue) net <u>$4,995</u>
Total Expenses <u>$23,292</u>
Net Income <u>$1,406</u>
Answer: 62.5%
Explanation:
Equivalent units = Units completed and transferred out + percentage completed of ending inventory
14,800 = (1,100 + 14,000 - 800) + Percentage
14,800 = 14,300 + Percentage amount completed
Percentage amount completed = 14,800 - 14,300
Percentage amount completed = 500 units
Percentage = Ending equivalent units / ending inventory
= (500/800) * 100
= 62.5%
Answer: 26.5% increase
Explanation:
Current profit = Sales - Variable costs - fixed costs
= ((32.50 - 16.50) * 360 bears) - 1,420
= $4,340
Sales increase by 20% = 360 * ( 1 + 20%) = 432 bears
New profit;
= ((32.50 - 16.50) * 432 bears) - 1,420
= $5,492
Effect of sales increase = ( 5,492 - 4,340) / 4,340
= 26.5% increase