What recommendations would you make to the two companies

Assignment Help Financial Accounting
Reference no: EM132986509

Question - Assume that two companies, Brake, Inc. and Carbo, Inc., have the following operating results:

 

Brake, Inc.

Carbo, Inc.

Sales

$300,000

$300,000

Variable Costs

60,000

180,000

Fixed Costs

210,000

90,000

Operating Income

$30,000

$30,000

Required - What recommendations would you make to the two companies and why?

Reference no: EM132986509

Questions Cloud

Evaluate history of cryptography : Evaluate the history of cryptography from its origins. Analyze how cryptography was used and describe how it grew within history.
An intriguing opening : An intriguing opening. You might give us a taste of your text or select a similar text, incident, etc.
Prepare the necessary journal entries : Prepare the necessary journal entries for 2020 for Sol Inc and compute the balance in the investment account in K Corp on December 31, 2020
Influence of leadership : The influence of leadership can be far-reaching in practice and improving patient outcomes even when not in a formal role
What recommendations would you make to the two companies : Assume that two companies, Brake, Inc. and Carbo, Inc., have the following operating results: What recommendations would you make to the two companies
Computer essentials : Imagine that you are looking to purchase a new personal computer. If you were buying a car, you would surely have to identify the features and options you seek.
What is your annual total rate of return : At the time you purchased the bond, the yield to maturity was 6%. What is your annual total rate of return on holding the bond for that year
What amount should used to consolidate sub cost of good sold : What amount should be used to consolidate Sub's cost of goods sold into Parent's income statement under the current rate method
Agile project management : What are benefits and challenges of Agile Project Management? How can Agile Project Management be used in other domains?

Reviews

Write a Review

Financial Accounting Questions & Answers

  How many student hours does Harprit need to sell

Harprit owns a Cambridge Learning Systems Inc. tutoring Franchise. How many student hours does Harprit need to sell to make a $3,200 profit in one month

  Determine the net operating profit or loss for the business

Determine the net operating profit or loss for the business. Provide detailed assumptions to support each line item in your Proforma P&L Statement.

  How much did shareholders initially invest in the business

Baltimore Company reports total assets and total liabilities of $271,000 and $85,000, respectively, at the conclusion, of its first year of business.

  Activity-based costing uses

Activity-based costing uses. Hemingway's Hot Dogs sell for $2.00 each. The hot dogs cost Hemingway $0.95 and commissions are $0.15 per hot dog. How many dogs must Hemingway sell if his fixed costs for the stand and rent are $3,500?

  Prepare the journal entries to record the exchange

Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance and prepare the journal entries to record the exchange on the books of both companies

  What is the amount of cash received by the seller

Assuming that a credit for merchandise return of $600 is granted before payment, what is the amount of cash received by the seller

  Estimated percentage of completion used to calculate revenue

In 2016, Long Construction Corporation began construction work under a three-year contract. The contract price is $2,100,000. Long recognizes revenue over time according to percentage of completion for financial reporting purposes. What was the cost ..

  Problem regarding the income flows vs cash flows

The text states, ''Over suf?ciently long time periods, net income equals cash in?ows minus cash out?ows, other than cash ?ows with owners

  What is the product margin for product

Brisky Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts-equipment depreciation and supervisory expense-to three activity cost pools-Machining, Or..

  What would the results be for louis clark

To allocate administration expense based on direct costs, and to allocate laboratory expense based on tests. What would the results be?

  Long-term capital gain and short-term capital loss

In the current year, Tanager Corporation (a C corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Tanager had a long-term capital gain of $55,000 and a short-term capital loss of $40,000.

  How many inputs are used for the index model

How many inputs are used for the index model? Consider an environment of 30 individual risky securities and one risk free asset.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd