The following income statement was drawn from the records of joel company, a merchandising firm: joel company income statement for the year ended december 31, 2018 sales revenue (2,000 units Γ $125) $ 250,000 cost of goods sold (2,000 units Γ $65) (130,000 ) gross margin 120,000 sales commissions (10% of sales) (25,000 ) administrative salaries expense (30,000 ) advertising expense (20,000 ) depreciation expense (24,000 ) shipping and handling expenses (2,000 units Γ $1.00) (2,000 ) net income $ 19,000 required reconstruct the income statement using the contribution margin format. calculate the magnitude of operating leverage. use the measure of operating leverage to determine the amount of net income joel will earn if sales increase by 10 percent.
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Business, 21.06.2019 19:30
How can a poor housing market put home buyers in a financially unstable position? a. changing property values means itβs easier to find homes with low rental costs. b. when the home value decreases, property taxes and insurance costs increase. c. houses are valued lower than their purchase prices, so the home equity decreases. d. home buyers lose all tax benefits and tax incentives when the housing market goes down. e. mortgage payments can increase even though the home value decreases.
Answers: 1
Business, 22.06.2019 10:30
The rybczynski theorem describes: (a) how commodity price changes influence real factor rewards (b) how commodity price changes influence relative factor rewards. (c) how changes in factor endowments cause changes in commodity outputs. (d) how trade leads to factor price equalization.
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Business, 22.06.2019 20:20
As you have noticed, the demand for flip phones has drastically reduced, and there are only a few consumer electronics companies selling them at extremely low prices. also, the current buyers of flip phones are mainly categorized under laggards. which of the following stages of the industry life cycle is the flip phone industry in currently? a. growth stage b. maturity stage c. decline stage d. commercialization stage
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The following income statement was drawn from the records of joel company, a merchandising firm: jo...
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