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Computing and Using the CM Ratio
Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and total fixed expenses were $65,000.
Required: 1. What is the company's contribution margin (CM) ratio? 2. Estimate the change in the company's net operating income if it were to increase its total sales by $1,000.
Illustrate what adjusting entry would you need to make, assuming you decided to allow the maximum amount of revenues for 2009, using modified accrual accounting?
Business combinations historically have been accounted for as either a purchase or a pooling of interests. Now, with SFAS 141(R), the acquisition method is required. Explain why did FASB change the rules? Did VIEs have a role in that decision?
Classic Corporation borrowed $90,000 from the bank on November 1, 2012. The note had an 8 percent annual rate of interest and matured on April 30, 2013. Interest and principal were paid in cash on the maturity date. Illustrate what amount of inter..
John thinks the losses were particulary large because his company has too much fixed assets. Expand on johns thoughts. Explain how the large bosses related to fixed costs? identify a way that john can turn potential fixed costs into variable costs
Activity in your organization where you can apply breakeven analysis. The organizations I chose is Best Buy
What other objectives can you identify to improve the human, information, and organization capital of DAP if it is to succeed with its strategy?
The cost of adding this new feature is $26,000 and Zippy expects to sell 1,600 units over the next year. Illustrate what is the cost or benefit of Zippy adding the feature to the product?
How much will be in a high-yield account at the National Bank of Arizona 12 years from now if you deposit $5000 now and $7000 fi ve years from now? The account earns interest at a rate of 8% per year, compounded quarterly (draw the cash flow diagram)
the risk premium for exposure to aluminum commodity prices is 4 and the firm has a beta relative to aluminum commodity
Since the VP's trust you, they asked you to figure out the most they should pay for a license from SohnCo.Explain your answer in detail and yuli-One Copters is known to be aggressive in ignoring intellectual property claims
Describe how it is different to statutory income and exempt income and determining whether a fringe benefit
Calculate the cost per cart using direct labor hours to assign overhead costs and What is the gross margin on a deluxe golf cart?
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