For an organization with annual sales of $500 million, purchases of $300 million and profit of $75 million, a 15 percent reduction in the cost of purchases would result in a profit-leverage effect of:. a. 10 percent (sales increase of 10 percent would be required to achieve the same percentage increase in profit).
b. 60 percent (sales increase of 60 percent would be required to achieve the same percentage increase in profit).
c. 10 percent (sales increase of 50 percent would be required to achieve the same percentage increase in profit).
d. 15 percent (sales increase of 15 percent would be required to achieve the same percentage increase in profit).

Employees of dti, inc. worked 1,600 direct labor hours in january and 1,000 direct labor hours in february. dti expects to use 18,000 direct labor hours during the year, and expects to incur $22,500 of worker’s compensation insurance cost for the year. the cash payment for this cost will be paid in april. how much insurance premium should be allocated to products made in january and february?

Select the word from the list that best fits the definition sometimes

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)