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Problem 1: A manufacturer produces a product that sells for P10 per unit. Variable costs per unit are P6 and total fixed costs are P12,000. At this selling price, the company earns a profit equal to 10% of total peso sales. By reducing its selling price to P9 per unit, the manufacturer can increase its unit sales volume by 25%. Assume that there are no taxes and that total fixed costs and variable costs per unit remain unchanged. If the selling price were reduced to P9 per unit, the profit would be
A. P3,000 C. P5,000
B. P4,000 D. P6,000
George is unsure how he will treat the interest paid on the $20,000 loan. In 2013, George paid $1,200 interest expense on the loan. For tax purposes, how should he treat the 2013 interest expense?
Once the problem is defined the inventory level is increased to keep the system operating smoothly
Discuss the similarities and differences between the tax consequences of the operating distribution and the tax consequences of the liquidation distribution.
Prepare an income statement for the year ending May 31, 2005 and prepare a retained earnings statement for the year ending May 31, 2005.
Calculate the margin, turnover, and return on investment for the six scenarios. Rank the scenarios in order of ROI, highest to lowest.
standard cost sheet massage chairmetal tubing 6 meters 3 18.00leather 2 square meters 7 14.00padding 3 kilograms 4
Find the Costs of goods sold statement. Factory overhead- Appliedat 150% of direct labor costs. Inventories May 1 2016 May 31, 2016
Describe the specific characteristics of each system and provide at least 2 examples from companies in your community for each system.
Suppose the CEO decided to issue long term debt and use the proceeds to pay a dividend. Would that change ROA? If so, would it go up or down? Explain briefly.
Soria uses the FIFO method to compute equivalent units and how many units were transferred out this period?
In the month of September, a department had 500 units in the beginning work in process inventory that were 60% complete. These units had $30,000 of materials costs and $22,500 of conversion costs.
How many machines should the manager purchase initially? The machines will be used to manufacture a new gear for which there is increased demand.
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