income be affected
Q: Which of the following is not a component of the formula used to distribute income?
A: Partnership: Partnership is a form of business organization in which two or more than two…
Q: Define the term capitalized cost?
A: A Capitalized Cost is the cost incurred in the purchase and financing of fixed assets. It includes…
Q: Explain the components of non operating income.
A: Non Operating Income is that part of an organisation's income that is obtained from activities not…
Q: building. Compute the exclusions from gross income of Arturo:
A: Properties received from father is not taxable because it is a relative So,Immovable asset received…
Q: Define accrual-basis net income.
A: Accrual Basis accounting: Under the accrual basis. the revenue and expenses are recorded accreting…
Q: what are contrast economic concepts of income from reported income?
A: As per the income statement, the reported income refers to the income left after subtracting the…
Q: Why must a cost be assigned to retained earnings?
A: Likewise, debt and equity financing, retained earnings has also some cost. The predictor care about…
Q: revenues and expenses
A: The income statement shows the net income or net loss that includes the revenues and expenses of the…
Q: What is the relationship between Income Measurement and Asset Valua
A: Profit or loss calculation is a simplified method of calculating income. An accountant defines…
Q: The residual income amounted to?
A: Income is the amount remaining with the company from the Revenue after taking into consideration the…
Q: What is profit contribution
A: The profit is calculated as difference between total revenue earned and total expenses incurred.
Q: How much is net income?
A: Financial statements are the set of records of the financial transactions and position of a business…
Q: What is the criteria to recognize revenue?
A: Introduction: Taxes, customs charges, earnings from state-owned firms, capital revenues, and foreign…
Q: When is Profit and Loss Account made? Why?
A: Profit and loss account: profit and loss account also called an income statement. Every business…
Q: allocation of income or loss to have economic effect
A: Income or loss is the net result of operational activities of a business conducted during a…
Q: What is the Operating Income?
A: As per your request the solution is as per your specified requirement. Operating income is the…
Q: How does EVA differ from accounting profit?
A: Introduction: Economic value added is the sum of net earnings over capital costs. EVA corresponds to…
Q: What is function of expense method?
A: Organisations can opt for either of the options to prepare and report the income statement. They are…
Q: Net income will be:
A: Net income can be calculated by using the following formula:
Q: The purpose of a statement of retained earning is to ?
A: Statement of Retained earnings is prepared to show the details of changes occurred in equity over an…
Q: What is the net income
A: Income refers to the revenue which is received by the business when goods and services are sold or…
Q: What is the net income?
A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…
Q: what is asset? what is gross profit?
A: Financial statements: These are the financial reports prepared by an organization for a financial…
Q: What makes up gross income?
A: Gross income is direct income of a business generated from direct revenues of the company. It is an…
Q: Income Stater ICO the & Sedgwick
A: Sales Revenue $5,500,000 Less: Sales discount $10,000 Net sales revenue…
Q: define and provide an example of “comprehensive income.”
A: The income represents the earnings of the company. The income is the total profit or earnings. One…
Q: Net Income , SFP
A: Net Income is the excess of revenue over expenses.
Q: what is meant by Capitalized cost?
A: Capitalized cost is a cost which is incurred in purchasing the fixed asset or making the fixed asset…
Q: What is revenue?
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: What is Profit and Loss (PNL)?
A: A business organisation is established with an objective to make money and increase the worth of the…
Q: What is the difference between operating and non –operating income?
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: What is the difference of net income and gross income?
A: The answer is provided as follows:
Q: lationship between Income Measurement and Asset Valuation
A: Profit or loss calculation is a simplified form of income measurement. Income is defined by an…
Q: How is gross profit calculated, and what does it represent?
A: Gross profit is the difference of amount obtained by subtracting Cost of goods sold from Net…
Q: What is a capital expenditure versus a revenue expenditure?
A:
Q: Explain the types Earnings?
A: Earning is the amount of income that an individual or organization receives during a year.
Q: Income fr
A: Assumptions :- 1] From…
Q: what is net income ?
A: Net income is the profit after tax where the profit is the net profit after interest and…
Q: Is profit an asset or liability?
A: profit or income are generally classified under assets.
Q: What is expenditure? explain types of expenditure?
A: Payments or liabilities incurred in exchange for goods or services are referred to as expenditures.…
Q: What is Accumulated benefit obligation?
A:
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- 4 Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, but is currently producing and selling 20,000 sails per year. The following information relates to current production. If a special sales order is accepted for 4,500 sails at a price of $120 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) Sale price per unit $150 Variable costs per unit: Manufacturing Marketing and administratrve $60 $20 Total fixed costs: Manufacturing Marketing and administrative $600,000 S200,000 Increase by $160,000 ) Increase by $150,000 ) Increase by $140,000 Increase by S170,000 ) Increase by S180,000 ()Metalex Roofing Ltd manufactures roofing sheets whose normal selling price is GH¢20 per sheet. The variable cost of producing the product is GH¢8. A foreign distributor has offered to purchase 3,000 sheets for GH¢10 per sheet. This is a one-time order that would not affect the company's regular business. The annual capacity is 10,000 sheets, but Metalex is currently producing and selling only 5,000 sheets. Fixed costs are unaffected by the order. a. Should Metalex accept the offer? b. Assuming Metalex has no spare capacity and the order will result in a loss of production of 300 sheets. Should the order be accepted?Markson had the following results of operations for the past year (shown in picture). A foreign company whose sales will not affect Markson's market offers to buy 2000 units at $14 per unit. In addition to existing costs, selling these units would increase fixed overhead by $1,600 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, it's profits will?
- Peru Company, which manufactures sneakers, has enough capacity available to accept a special order of 20,000 pairs of sneakers at Ph 6.00 a pair. The normal selling price is Ph 10.00 a pair. Variable manufacturing costs are Ph 4.50 a pair, and fixed manufacturing costs are Ph 1.50 a pair. Peru will not incur any selling expenses as a result of the special order. What could be the effect on operating income if the special order could be accepted without affecting normal sales? O Ph 0 Ph 30,000 increase Ph 90,000 increase O Ph 120,000 increaseAssume again that Andretti Company has sufficient capacity to produce 123,200 Daks each year. A customer in a foreign market wants to purchase 35,200 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $28,160 for permits and licenses. The only selling costs that would be associated with the order would be $1.60 per unit shipping cost. What is the break-even price per unit on this order? (Round your answers to 2 decimal places.)Muscat Inc. has been manufacturing its own Camera for its Mobile Phone. The company is currently operating at 100% of capacity. Variable manufacturing overhead cost is OMR 3 per unit. The direct materials and direct labor cost per unit to make the camera are OMR 4 and OMR 6, respectively, fixed cost is OMR 50,000. Normal production is 50,000 Mobile Phone per year.
- Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year’s plans call for a $200 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $270,000, up to a maximum capacity of 700,000 yards of rope. Forecasted variable costs are $140 per 100 yards of XT rope. Required 1. Estimate Product XT’s break-even point in terms of (a) sales units and (b) sales dollars. 2. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point.The Cozy Company manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $5.75 a pair, and allocated fixed manufacturing cost is $1.75 a pair. It has enough idle capacity available to accept a one-time-only special order of 25,000 pairs of slippers at $7.50 a pair. Cozy will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) $0, (b) $43,750 increase (c) $143,750 increase, or (d) $187,500 increase? Show your calculations.A. Island View Company operates tour boats. Its predicted operations for the year are as follows: Sales (1,000 tours per year) P 400,000 Costs: Variable P 250 per tour Fixed P 100,000 per year The company has received a request to offer 100 tours for P 300 each. Island View has plenty of capacity to do these tours in addition to its regular business. Doing these tours would not affect the company’s regular sales or its fixed costs. Required: (Support your answers by showing your computations.) 1. Should the company do the special tours for P 300 per tour? 2. What is the effect of the decision on the company’s operating profit?
- Sundial Company manufactures and sells watches for $44 each. Tick−Tock Company has offered Sundial $25 per watch for a one−time order of 5,700 watches. The total manufacturing cost per watch is $29 per unit and consists of variable costs of $21 per watch and fixed overhead costs of $8 per watch. Assume that Sundial has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special sales order? A. decrease of $22,800 B. increase of $22,800 C. increase of $142,500 D. decrease of $142,500B. Smash Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of P7.00.The new customer is geographically separated from Smash’s other customers, and existing sales will not be affected. Smash normally produces 82,000 units but plans to produce and sell only 65,000 units in the coming year. The normal sales price is P12.00 per unit. Unit cost information is as follows: Direct materials P 3.10 Direct labor 2.25 Variable overhead 1.15 Fixed overhead 1.80 Total P` 8.30 If Smash accepts the order, no fixed manufacturing activities will be affected because there…Lucid Images Ltd manufactures premium high definition televisions. The firm’s fixed costs are $4,000,000 per year. The variable cost of each TV is $2,000, and the TVs are sold for $3,000 each. The company sold 5,000 TVs during the previous year. (In the following requirements, ignore income taxes) Required: Treat each of the requirements as independent situations: a) What will the new break-even point be if fixed costs increase by 10 per cent? b) What was the company’s net profit for the previous year? d) The sales manager believes that a reduction in the sales price to $2,500 will result in orders for 1,200 more TVs each year. What will the break-even point be if the price is changed?