Majorn uses the indirect method to prepare its statement of cash flows his net cash used by operating activities is $(62,000).
What is a cash flow?
A business's overall inflow and outflow of cash are known as cash flow. It serves as a crucial gauge of your company's financial health.You can pay expenditures, put money into new prospects, and expand your firm with a steady, positive cash flow. The three categories of cash flow are operating, investing, and financing cash flow. In order to fulfill your current financial responsibilities and make plans for the future, you need to have a positive cash flow. But for small firms, cash flow is a regular problem. When the amount of money leaving the organization exceeds the amount of money coming in, there is a cash flow issue.To learn more about cash flow refer to:
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the 100 in a 50/100/25 split limit policy refers to the maximum amount the policy will pay in:
The 100 denotes a bodily injury liability limit of $100,000 per accident. The final 50 represents the per-accident responsibility for property damage, which is likewise $50,000.
A rule and an example signify what?
The policy of a government or other institution may take the form of legislation, a regulation, a procedure, an administrative choice, an inducement, or an optional practice. Usually, resource distributions reflect political choices. Health may be impacted by policies in many different businesses.
What does policy serve to accomplish?
Mission, values, and strategic goals are all distilled into policies, which, together with the law, are the result of everything that came before them in the hierarchy. More specific than strategic objectives, policies specify parameters, or boundaries, for behavior and activities required to achieve those objectives.
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The two ways that society can increase its real output and income are by increasing its inputs of resources and. by raising the productivity of those inputs.
Real production and wages can improve as society increases resource input and boosts resource productivity.
What term best describes increase?Increase has a number of popular synonyms, including augment, enlarge, and quadruple. While all of these verbs indicate "to make or just become greater," "increasing" denotes progressive expansion in size, volume, or intensity when used in the passive. When employed in the active, however, it could also suggest simple addition rather than progressive growth.
What is a good increase of growth?to increase (something's) size, quantity, number, etc. The price will be raised to $50 to $60 very shortly. She significantly boosted her wealth. The pilot picked up the pace.
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Of the principles of ethical conduct, one is said to be similar to a cost-benefit analysis. Which of the following principles does this description fit? the Principle of Distributive Justice the Principle of Virtue the Utilitarian Principle the Universalist Principle
Values are informed and influenced by principles.
What are the main ethical principles?Different principles are also applied in certain contexts. We will discuss utilitarianism, universalism, rights/legal, justice, virtue, the common good, and ethical relativism.utilitarianism, universalism, rights/legal, justice, virtue, common good, and ethical relativism approaches.
This notion is based on legal and moral rights. Legal rights are privileges restricted to a certain legal system and territory. In the United States, the Constitution and Declaration of Independence serve as the foundation for people' legal rights, such as the right to life, liberty, and the pursuit of happiness, as well as the right to free expression. Moral (and human) rights, on the other hand, are universal and founded on conventions in every community, such as the right to labor and the right not to be enslaved.
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Answer
Explanation
carlos wants to purchase a lot, owned by sarah, that is next door to sarah's home. carlos knows sarah will not sell the lot to him because of his barking dogs that she dislikes. carlos agrees with jasmine that jasmine will purchase the lot from sarah for him. jasmine and sarah reach an agreement and enter into a contract whereby sarah is to sell the lot to jasmine for a price within the scope of jasmine's authority. jasmine tells sarah nothing about her plan to later transfer the lot to carlos. before title to the lot is transferred to jasmine, carlos tells jasmine that he no longer wants the lot. jasmine tells sarah about carlos. sarah tells jasmine that as far as she is concerned, jasmine has bought the lot. sarah says that she plans to move anyway and really does not care whether jasmine or carlos ends up with the lot. she just wants her money and is unconcerned about barking dogs, which will be the next owner's problem. which of the following is true regarding whether jasmine is personally bound on the contract with sarah?
From the deals of the contract that involves these persons, we can say that Jasmine is personally bound on the contract with Sarah
What does it mean to be personally bound on a contract?Any deal that is legally enforceable is referred to as a "binding contract." This means that if you enter into a legally enforceable contract and fail to uphold your half of the bargain, the other party may file a lawsuit against you.
The promisee, who benefits from a contract, and the promisor, who makes a promise, are the two key participants on the surface. Additionally, the contract imposes obligations on both parties. Contracts occasionally have third-party beneficiaries.
A contract that is enforceable and has legal standing is said to be legally binding. Someone will be held accountable by the law if they violate an agreement that is enforceable by law.
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Typical capital budgeting decisions include ______ decisions.
O employee hiring and firing
O cost reduction
O lease or buy
O equipment selection
O product and service pricing
Answer: cost reduction
lease or buy
equipment selection
Typical capital budgeting decisions include decisions related to cost reduction, lease or buy, and equipment selection.
Capital budgeting is the evaluation of potential big projects or investments by a corporation. Construction of a new facility or a substantial investment in an external enterprise are examples of undertakings that require capital budgeting prior to approval or rejection.
As part of capital planning, a corporation may evaluate the lifetime cash inflows and outflows of a prospective project to determine whether the anticipated returns generated reach an acceptable threshold. The practice of capital budgeting is also known as investment evaluation.
Companies use capital budgeting to analyze significant projects and investments, such as new factories or equipment.
The procedure entails assessing the cash inflows and outflows of a project to evaluate whether the predicted return satisfies a predetermined benchmark.
The primary techniques for capital planning are discounted cash flow, payback, and throughput analyses.
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A change in ______, rather than a change in the quantity supplied, means a change in the schedule or a shift of the supply curve.
A change in supply, rather than a change in the quantity supplied, means a change in the schedule or a shift of the supply curve.
When the producers or output of the suppliers of a specific good or service change, it is said that the supply has changed. A change in supply might emerge from new technology, such as less expensive or more efficient production techniques, or from a shift in the number of market rivals.
A shift in the supply curve caused by a change in supply generates a market imbalance that is resolved by a change in prices and demand. The supply curve changes to the right when the change in supply is higher and to the left when the change in supply is lower. In essence, there is a rise or fall in the quantity supplied along with a rise or fall in the supply price.
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Edge Company produces two models of its product with the same machine. The machine has a capacity of 140 hours per month. The following information is available. Standard Deluxe Selling price per unit $ 70 $ 100 Variable costs per unit 20 60 Contribution nargin per unit $ 50 Machine hours per unit 1 hour 2 hours Maximum unit sales per month 600 units 208 units Required: $ 40 1. Determine the contribution margin per machine hour for each model, Product Contribution Margin Standard Contribution margin per unit Deluxe Contribution margin per machine hout 2. How many units of each model should the company produce? How much total contribution margin does this mix produce per month Standard Deluxe Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 3. Assume the maximum demand for the Standard model is 70 units (not 600 units). How many units of each model should the company produce? How much total contribution margin does this mix produce per month? Standard Deluxe Total Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin
The total contribution margin per machine hour = $20 , the total contribution margin of product is $7000.
Contribution margin :Contribution margin shows the total amount of revenue after covering fixed costs and deducting variable costs to make the business profitable," says Knight. This can be thought of as a portion of sales that helps offset fixed costs. Contribution margin (CM) or dollar contribution per unit is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales that is not consumed by variable costs and contributes to covering fixed costs.
1.
Product contribution margin Standard Deluxe
Contribution margin per unit $50 $40
Machine hours per unit 1 2
Contribution margin per machine hour $50 $20
2.
Standard Deluxe Total
Hours dedicated to the production of each product 600 (600*1) 400 (200*2) 1,000
Units produced for most profitable sales mix 140 0
Contribution margin per unit $50 $40
Total contribution margin $7,000 $0 $7,000
3.
Standard Deluxe Total
Hours dedicated to the production of each product 70 (70*1) 400 (200*2) 470
Units produced for most profitable sales mix 70 70
Contribution margin per unit $50 $40
Total contribution margin $3,500 $2,800 $6,300
Why is Contribution Margin Important?
It is an accounting term that helps business owners and managers track the profitability of their products. Understanding contribution margin is important. Because the contribution margin shows how much of the product's sales cover the fixed costs and contribute to the company's profit.
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66.63 rounded to nearest cent
To the nearest penny, round up to 66.63 Take 66.63 as an example. Its value in thousandths is 0 and less than 5.
Where do I find the nearest cent?A cent is added where necessary:
For a dollar amount that is between 0 and 49 cents, round down.
For sums between 50 and 99 cents, round up.
The nearest cent means what?To the nearest cent, you can either round to the next hundredths or to two decimal places.
Is there a digit after the penny closest to you?There are no more numbers following the decimal point since the closest cent would be a whole number. Any number LESS THAN 5 is rounded down according to the basic rule. So, 5.4 rounded to the nearest
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marx believed that was the first economic system capable of maximizing the immense productive potential of human labor and ingenuity.
Marx considered capitalism to be the first economic system capable of harnessing the enormous productive potential of human labor and intellect.
Karl Marx, who was he?What were his thoughts on capitalism? Marx considered capitalism to be the first economic system capable of harnessing the enormous productive potential of human labor and intellect.Marx saw capitalism as a system that alienates the masses.His rationale was as follows: while employees generate goods for the market, it is market forces, not workers, that control the market.People are forced to labor for capitalists who wield complete control over the means of production and wield authority in the workplace.Marx is most renowned for his revolutionary works that advocated for socialism and a communist revolution.While the majority now rejects Marxism and Marxian economics, many of Marx's critiques of capitalism remain pertinent.To learn more about Karl Marx refer
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FILL IN THE BLANK. one of the true risks of high national debt is an equity issue in that upper-income individuals may benefit more through expanded investment opportunities at the cost of___lower-income individuals.
The private sector's inability to utilize savings properly is one of the real problems associated with the massive national debt.
What does "debt" mean?Debt may well be defined as the amount that the borrow owes the lender. A debt refers to a sum of income that has been taken for a specified time frame and must be repaid, plus interest. That debtor's reputation affects both the debt's size and its clearance.
What kind of debt are there?Loan payments, housing, and credit card transactions are typical examples. But did you guys know there are several sorts of debts, in addition to the loans? Four kinds of debt are frequently used: secured, unsecure, revolving, and monthly.
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an analyst of the illicit global economy would probably not agree with which of the following statements? pressure on pariah states to crack down on illicit networks often backfires. opening of capital markets helps dirty money flow more easily around the world. transdniestra is a hub of trafficking and smuggling. global integration and technological change weaken criminal actors.
An analyst of the illicit global economy would probably not agree with global integration and technological change weaken criminal actors.
Option D is correct.
What does the global economy explain?The global economy can be defined as the sum of activities that take place within and between different countries. Each country is a separate entity with its own industrial production, labor market, financial market, resources, and environment.
What are the main benefits of the global economy?Potential economic benefits of globalization include greater choice, better product quality, greater competition, economies of scale, greater capital flows, greater mobility of labor, and improved international relations.
How is the global economy affecting us?Globalization generally lowers manufacturing costs. This means that businesses can offer consumers lower prices. The average cost of goods is an important aspect that helps improve living standards. Consumers also have access to a wider variety of goods
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assume that fod good x the supply curve for a good is a typical upward cloping straight lijen andn the demand curve is a typical
Assume that fod good x the supply curve for a good is a typical upward-cloping straight lien and the demand curve is a typical are:
-deadweight loss of the tax increases by a factor of 9
-the height of the triangle that represents the deadweight loss triples
-base of the triangle that represents the deadweight loss trip
Supply curve shift: changes in production cost and associated elements can purpose a whole supply curve to shift right or left. This causes a higher or lower amount to be provided at a given charge. The ceteris paribus assumption: supply curves relate costs and quantities provided assuming no different elements trade.
The delivery curve slopes upward because as a product's charge rises, the enterprise could tend to be greater inclined to make it. additionally, since organizations are efficient and would exhaust the cheapest production inputs first, the fee of manufacturing has a tendency to upward thrust as output will increase.
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the adjusted trial balance is used to prepare the income statement only. the unadjusted trial balance is used to prepare the equity statement and balance sheet.
False. The adjusted trial balance is used to prepare the income statement only. the unadjusted trial balance is used to prepare the equity statement and balance sheet.
What is the adjusted trial balance?The general ledger account balances are shown in an adjusted trial balance following any revisions. These changes often cover depreciation, prepaid expenses, accruing expenses, and other non-cash costs. It's that easy.
A list of the ledger account closing balances at a certain moment is called a trial balance. On the other hand, an adjusted balance is a list of general accounts and their current balances following the posting of the adjusting entries.
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the adjusted trial balance is used to prepare the income statement only. the unadjusted trial balance is used to prepare the equity statement and balance sheet. T or F
Alberta has been working in the sales field for almost 10 years. She enjoys learning about potential customers and their problems. She then shares how her product will help them solve their problems in the hopes they will want to buy from her. Alberta most likely works in
Multiple Choice
a. order processing.
b. advocacy marketing.
c. sales support.
d. problem prospecting.
e. creative selling.
Since she shares how her product will help them solve their problems in the hopes they will want to buy from her. Alberta most likely works in advocacy marketing. Option B
What is meant by advocacy marketing?Through methods like testimonials, reviews, and social mentions, advocacy marketing aims to get your present consumers to spread the word about your company and goods.
An advocate marketing approach can help you promote your brand, better connect with your target market, and develop relationships with customers that are mutually beneficial. It is a crucial element of any of any digital marketing strategy
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combines computerized manufacturing processes with other computerized systems used before and after manufacturing.
Computer-integrated manufacturing combines computerized manufacturing processes with other computerized systems used before and after manufacturing.
What combines additional computerized systems used before and after manufacturing with computerized manufacturing processes?Design, inventory, production, and purchasing are all managed by computerized systems in computer-integrated manufacturing (CIM).
What is a production process where the fundamental inputs either unite to produce the result or are transformed into the output?The converse is true throughout the assembly process. Natural resources, raw materials, and human resources are only a few examples of the essential inputs that are either combined to create the output or changed into the product.
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true or false : in a limited partnership, a limited partner has full responsibility for the partnership and for all its debts.
The statement that in a limited partnership, a limited partner has full responsibility for the partnership and for all its debts is false.
What is a Limited Partnership?
A limited partnership (LP) is a partnership agreement between two or more partners - a general partner and limited partners who go into business together.
The limited partners are only liable for the amount they invested in the business but have little to no involvement in the management of the business.
The general partners have unlimited liability and are fully in charge of the management of the business.
Therefore, a limited partner does not have full responsibility for the partnership and for all its debts in a limited partnership.
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as an invaluable employee to her company, emma has been given the freedom to choose her work hours. she can also opt to work
Emma is permitted to set her own working hours because she is a valuable employee for her company. She can choose to work from home for a total of seven days every month. In this case, job flexibility is being created by utilizing one of the following retention tactics.
Formal socialization occurs when coworkers teach a new employee how to execute their job, right?Formal socializing occurs when colleagues train a new hire on how to conduct their job. When employees undergo training and start learning about the company's culture and customs as well as how to accomplish their jobs, anticipation socialization takes place.
Which of the following would make peer reviews a successful internal assessment technique in a company?rely on qualified psychologists to evaluate a candidate's traits, principles, and behavioral patterns in relation to a certain position.
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Which of the following statements about achieving a common understanding of the project purpose is true?Select one:a. A common understanding means building a consensus and disagreement regarding a project’s purpose is often fatal to project execution.b. Developing a common understanding involves defining project success, determining potential barriers to success, establishing milestones, and identifying decision-makers.c. The methods and processes employed to develop a common understanding depend on the duration of the project.d. Irrespective of the complexity of the project, developing a common understanding usually involves informal discussions that last a few hours.e. When developing a common understanding of the purpose of a project, participants are often instructed to refrain from expressing skepticism.
The true statement about achieving a common understanding of the project purpose is developing a common understanding involves defining project success, determining potential barriers to success, establishing milestones, and identifying decision makers. Option B
What is Project purpose about?The purpose of a project reveals why it exists, what it means to do, what ambitions or dreams it is pursuing, or what course it is taking and maintaining.
For the project and for all stakeholders, the description of this is crucial on three different levels.
It is therefore a strategic decision-making tool and a lever of innovation that enables the project's ambition to be kept in mind at all times.
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strategizing the overhead costs per meal is crucial to the company, because after calculating the costs of the truck, marketing, taxes, and food expenses, seoul food also incorporates how many customers are served on average per day to meet the daily overhead expense required to run the truck
A competitive concept, a workable business plan, a fully furnished food truck, and an effective marketing campaign are necessary to launch a food truck.
What do restaurant overhead costs entail?The term "overhead costs" refers to recurring expenditures like rent, utilities, and advertising that, along with the purchase of food and raw materials for manufacturing goods, enable restaurants to operate.
What are included in overhead expenses?Rent, insurance, and utility charges are examples of overhead expenditures that go into running a business. Operating costs are necessary for the firm to function and cannot be avoided. Regular reviews of overhead costs are necessary to improve profitability.
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Lyn files a suit against karl. karl denies lyn charges and sets forth his own claim that lyn breached their contract and owes karl money for the breach. karl's claim is
Lyn files a suit against Karl. karl denies lyn charges and sets forth his own claim that lyn breached their contract and owes Karl money for the breach. karl's claim is a third-party claim.
A third-party claim is what?
A claim made by a person other than the policyholder or insurance provider is referred to as a third-party claim. If you are involved in a car accident that was caused by another person, you can submit a third-party claim with that person's insurance for your covered accident-related costs.
Lyn brings legal action against Karl. Lyn accuses Karl of breaking their agreement, and Karl responds by asserting his own claim that Lyn is responsible for the breach and owes Karl money. Karl's assertion is a third-party assertion.
Therefore, A claim submitted to someone else's insurance provider is referred to as a third-party insurance claim.
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when introducing a complex product in a developing nation, most companies would use a blank in order to educate consumers on the features of the product.
Most businesses would employ a push strategy when launching a sophisticated product in a developing country to inform consumers about the features of the product.
What is the corporate lingo for the push strategy?A push marketing strategy, often referred to as a push promotional technique, is one in which a company attempts to "push" its products onto clients.
A push strategy avoids using traditional distribution channels in favor of selling directly to clients. Two instances of this are direct sales of travel or insurance. The most likely promotional strategies with this kind of approach are consumer promotions and advertising.
When should the push strategy be used?How and When to Use Each Technique. Push marketing strategies work well for things that are less expensive or for which consumers may make an immediate decision. New businesses employ push strategies to build retail markets for their products and to raise awareness.
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Tax depreciation shelters a portion of annual operating income from taxation. However, the amount of cumulative tax depreciation is taxed when the property is sold. Suppose that your taxes due on sale will be $35,000 greater than if the property had not been depreciated. If the sale were to occur five years from now, determine the present value of the tax on depreciation recapture in the year of sale assuming a discount rate of 9.5%.
A) $31,963
B) $22,233
C) $55,098
D) $134,390
Tax depreciation shelters a portion of annual operating income from taxation.The closest answer choice to this value is $22,233, so the correct answer is B) $22,233.
What is Tax depreciation?Generally, To determine the present value of the tax on depreciation recapture in the year of sale, we can use the present value formula:
PV = FV / (1 + r)^n
Where PV is the present value, FV is the future value, r is the discount rate, and n is the number of periods.
Plugging in the given values, we get:
PV = $35,000 / (1 + 0.095)^5
= $35,000 / 1.503787
= $23,226.45
The present value of the tax on depreciation recapture in the year of sale is $23,226.45.
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Which of the following recruitment strategies can help an organization reduce labor costs and improve customer service together with accessing top talent?A. offshoringB. resume databasesC. observationD. trade fairs
Offshoring is the following recruitment strategies can help an organization reduce labor costs and improve customer service together with accessing top talent.
A talent inventory is what, exactly?A talent inventory is a database that contains information about the knowledge, experience, and career interests of the present workforce. Before you begin gathering any data, there are a few crucial questions you should ask yourself. I've included a complete list in the exercise files for you.
What does a talent inventory serve as its primary function?Employers use these inventories to determine whether their current workforce is capable of achieving their objectives. Planning strategically is aided by having a clear understanding of the company's present talent pool and future skill requirements.
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Which of the following statements is TRUE in terms of an optimal strategy for local, regional, and global systems? A Firms will always increase agency costs by developing only a few core global systems for vital global operations, and leaving other systems to local and regional units B All systems should always be locally scoped in nature, even ones which are vital for global operations Firms can reduce agency costs by developing only a few core global systems for vital global operations and leaving other systems to local and regional units D Firms should seek to increase transactional, agency, and coordination costs when doing business globally
An optimal strategy for local, regional, and global systems All systems should always be locally scoped in nature, even ones that are vital for global operations. Option B.
The best-mixed strategy for a Platoon player is the one that has the lowest possible expected value for the Platoon player's best counter-strategy. The First Order Optimal Strategy is the strategy with the highest power/effort ratio.
These strategies require minimal effort and skill but offer relatively high levels of strength or other rewards. It is often detected early. Pure Strategy provides a complete definition of how players play the game. Pure strategy can be viewed as an observational plan you make throughout the game. In particular, it determines the moves players make in situations they may face.
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the average rate of money growth in the united states over the period 1960 - 2015 was approximately 7%. the average rate of real gdp growth was approximately 3%. if we assume the average rate of velocity growth was 0%, then the average rate of inflation was a. 10% b. 3% c. 4% d. 3.5% e. cannot be determined
The average rate of inflation was 4%
How do you determine the real GDP growth rate on average?You will use the real GDP data as presented below as the basis for your computation of the real GDP growth rate. (Most recent years' real GDP − Most recent Years' real GDP) / Most Recent Years' Real GDP.
GDP equals private consumption plus gross domestic product plus government investment plus government expenditure plus (exports – imports).
The country's official statistical office often uses the international standard to compute GDP.
The period 1960 -2015 was approximately 7%The average rate of real gdp growth was approximately 3%(exports – imports) =
7% - 3% = 4%
The average rate of inflation was 4%.
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according to the limits-to-growth thesis, global supplies of oil and natural gas are already falling sharply and will continue to drop, a little faster or more slowly depending on
According to the limits-to-growth thesis, global supplies of oil and natural gas are already falling sharply and will continue to drop, a little faster or more slowly depending on the speed at which developing nation industralize.
The Limits to Growth, which was released in 1972, has made a profound impact on society for the past 50 years. Its main argument was that, because the earth's resources are limited, they cannot sustain the exponential rates of population and economic expansion and will eventually run out before the end of this century. This declaration has grown to be the inspiration for proposals for increased centralization and the imposition of restrictions on the freedom of people to make their own decisions.
The World Health Organization, the World Economic Forum, and other international organizations have identified air pollution, climate change, population growth, and water scarcity as some of the greatest dangers to human well-being. Politicians, policymakers, and environmentalists appear to agree that businesses will employ the least expensive techniques of manufacturing even as they harm the environment.
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the beatles' producer for most of their recordings was group of answer choices berry gordy phil spector gerry coffey george martin
The beatles' producer for most of their recordings was george martin .
What is meant by beatles producer?George Martin, who passed away in March 2016, was, of course, The Beatles' producer. Along with overseeing the recording of their records, he was the one who signed them to the label where he worked, EMI, a division of the UK business Capitol with an American branch.
Hip-hop artists use various producers on every other track in modern music, and rock bands switch producers every other album to help establish a fresh sound. The Beatles, however, worked with only one producer during their eight-year recording career: George Martin.
Some of the most well-known and enduring songs of the previous century were written by the songwriting team of John Lennon and Paul McCartney, the two founding members of the Beatles.
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the financial statements of acme fund, a growth fund, reveal that total net assets decreased by 15% this year, when the fund's nav per share decreased by 7%. during this period, the investment adviser to the fund has reduced the growth stock allocation by 10% and increased the fund's cash holding by 10%. all of the following statements are true about this fund except the:
The choice D is incorrect because net assets are dropping; and expenses rarely fall at the same rate, it can be expected that the fund's expense ratio (ratio of expenses to total net assets) is likely to increase over the coming months; not decrease.
The expense ratio refers to how much of a fund's assets are used towards administrative and different operating prices. because an price ratio reduces a fund's property it reduces the returns investors obtain.
The asset-weighted common cost ratio is 0.41%, in keeping with 2020 records from Morningstar, down from zero.44% the previous year. a good rule of thumb is anything under . 2% is considered a low fee and anything over 1% is high, in step with many experts.
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Bluegill Company sells 16,100 units at $360 per unit. Fixed costs are $289,800, and income from operations is $2,028,600. Determine the following: Round the
contribution margin ratio to two decimal places.
a) Variable cost per unit
b) Unit contribution margin
c) Contribution margin ratio
a) Variable cost per unit is $216
b) Unit contribution margin is $144
c) Contribution margin ratio is 65%
What is Fixed cost?Fixed cost is the cost that is paid by the company for its activities, the cost is fixed and which means it is not dependent on any other factor, it costs the same and does not vary with the production level.
a) Variable cost per unit is calculated as,
Sales $5,796,000 ($360 * 16,100)
Fixed Cost $289,800
Income from operations $2,028,600
Variable Cost = Sales - Fixed cost - Income from operations
Variable Cost = $5,796,000 - $289,800 - $2,028,600
= $3,477,600 / 16,100 = $216 per Unit
b) Unit contribution margin is calculated as sale price per unit minus variable cost. $360 - $216 = $144
c) Contribution margin ratio is calculated as total revenue minus variable cost, divided by total revenue. ($5,796,000 - $2,028,600) / $5,796,000 = 65%
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Melissa agrees to work as Garry's personal accountant for one year but dies in the sixth month of the contract. Melissa's estate
a. is discharged from any contractual liability.
b. must find a competent accountant to fulfill the contract.
c. must pay damages.
d. must refund any money paid to Melissa on the contract.
In the event of Melissa's death during the sixth month of a one-year contract to work as Garry's personal accountant, Melissa's estate would be discharged from any contractual liability. Under common law, any contract that is entered into with another party must be based on the consideration (i.e. exchange of money, goods, services, etc.) of both parties.
If one of the parties is unable to fulfill their obligations due to death, then the contract is considered void and the parties are relieved of any contractual obligations. In this case, the contract between Melissa and Garry would be void; therefore, Melissa's estate would be discharged from any contractual liability.
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