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Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant ra

melomori [17]

Answer:

0.6

Explanation:

Variable Expense Ratio is calculated by taking Variable Expense and dividing it by Sales. This ratio indicates how much of the variable expense is incurred by company for each $1 Sales.

So, variable expense ratio is .6 or 60% (33,000 / 55,000).

Such questions also require the calculation of Contribution Margin Ratio which is calculated by taking Contribution Margin and Dividing it by Sales. This ratio tells us how much the company generates after covering variables expenses when the sales are $1.

So, Contribution Margin Ratio is .4 or 40% (22,000 / 55,000).

6 0

2 years ago

The cost of producing a good and getting it to the customers is called the _____ . penalty cost

Free_Kalibri [48]

I believe the answer is accounting cost. good luck

5 0

2 years ago

Read 2 more answers

Partner A has a smaller capital balance than Partner L. Partner A, however, has a higher profit-and-loss-sharing percentage than

mixer [17]

Answer:

(C) Partner A will have a smaller loss absorption potential than L

6 0

2 years ago

Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discr

Novay_Z [31]

Answer: a) -A tax cut

-Additional spending on national park facilities

b) Expansionary fiscal policy

Explanation:

Fiscal Policy refers to how the government of a country is using it's spending and taxes to influence Economic conditions on a Macro level.

The keywords for this question are TAXES and SPENDING.

The means that a Discretionary FISCAL policy includes Taxes and Spending.

Now the way to close the Recessionary gap that is opening is to put more money into the Economy. The Government can do this by REDUCING TAXES which will means people have more money to spend and ADDITIONAL SPENDING on NATIONAL PARK FACILITIES as this means that the government is pumping more money into the Economy.

The discretionary fiscal policy needed to bring the economy closer to potential output is an example of an EXPANSIONARY FISCAL POLICY.

This is where the Government aims to put more money into the economy so that growth can be acheived and they do this by lowering taxes and increasing spending either singularly or simultaneously.

3 0

2 years ago

Comparative balance sheets for Pina Colada Corp. are presented as follows. Pina Colada Corp. Comparative Balance Sheets December

DerKrebs [107]

Answer and Explanation:

The Preparation of cash flows for 2020 using the indirect method is shown below:-

Cash flow from Operating Activities

Net income $134,100

Add: Adjustments to reconcile net income

Add; Depreciation on property, plant and equipment $25,000 ($66,250 - $41,250)

Less: Increase in Accounts receivable ($8,300) ($84,350 - $76,050)

Add: Decrease in Inventory $7,750 ($180,500 - $188,250)

Less: Decrease in Accounts payable ($12,950) ($33,400 - $46,350)

Net cash provided by Operating Activities $145,600

Cash flow from Investing Activities

Add:Sale of Land $24,850

Less: Purchase of equipment ($49,800) ($249,600 - $199,800)

Net cash used in Investing Activities ($24,950)

Cash flow from Financing Activities

Issue of common stock $48,900

Less: Redemption of bonds ($50,700)

Less: Dividend paid ($68,300)

Net cash used in Financing Activities ($70,100)

Net increase in Cash and Cash Equivalents $50,550

Cash in the beginning of the period $22,400

Ending cash balance for the year $72,950

7 0

2 years ago