The following income statement applies to walton company for the current year: income statement sales revenue (520 units × $42) $ 21,840 variable cost (520 units × $27) (14,040 ) contribution margin 7,800 fixed cost (5,200 ) net income $ 2,600 required a. use the contribution margin approach to calculate the magnitude of operating leverage. b. use the operating leverage measure computed in requirement a to determine the amount of net income that walton company will earn if it experiences a 20 percent increase in revenue. the sales price per unit is not affected. c-1. verify your answer to requirement b by constructing an income statement based on a 20 percent increase in sales revenue. the sales price is not affected. c-2. calculate the percentage change in net income for the two income statements.

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)

The new york times (nov. 30, 1993) reported that “the inability of opec to agree last week to cut production has sent the oil market into turmoil . . [leading to] the lowest price for domestic crude oil since june 1990.” why were the members of opec trying to agree to cut production? so they could save more oil for future consumption so they could lower the price so they could raise the price why do you suppose opec was unable to agree on cutting production? because each country has a different production capacity because each country experiences different production costs because each country has an incentive to cheat on any agreement the newspaper also noted opec’s view “that producing nations outside the organization, like norway and britain, should do their share and cut production.” what does the phrase “do their share” suggest about opec’s desired relationship with norway and britain? opec would like norway and britain to keep their production levels high. opec would like norway and britain to act competitively. opec would like norway and britain to join the cartel.

Free rein leaders can be described as: a. dictatorial b. authoritarian c. democratic d. permissive