contribution margin per unit is increased by 10%‚ total fixed cost is decreased by 20%‚ and all other factors remain the same‚ net income will: | | | A) | decrease by $60‚000. | | | B) | increase by $60‚000. | | | C) | increase by $120‚000. | | | D) | increase by $420‚000. | | | | | | Feedback:The correct answer is C (Learning Objective 1): Net income will change as follows.Calculations: $600‚000 x 10% = $60‚000 $300‚000 x 20% = $60‚000 | | 2 INCORRECT | | Gardner Manufacturing
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Case 5-1 Income Smoothing a. Firstly‚ investors tend to invest in companies with stable earnings rather than one with volatile earnings. With stable earnings‚ there will be more likely an issuance of dividends and investors could easily predict the company’s future earnings compared to one with unstable earnings. With consistent earnings generated‚ it gives investors a secured feeling that it will again generate earnings as predicted. Confidence in the growth of rate of earnings is crucial because
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comprehensive income PURPOSE AND SCOPE .01 This Section establishes standards for reporting and display of comprehensive income. It does not address issues of recognition or measurement for comprehensive income and its components. .02 This Section does not apply to not-for-profit organizations (see FINANCIAL STATEMENT PRESENTATION BY NOT-FOR-PROFIT ORGANIZATIONS‚ Section 4400). DEFINITIONS .03 The following terms are used in this Section with the meanings specified: (a) Comprehensive income is the
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Preparing an Annotated Bibliography Lai‚ I. K. W.‚ & Lam‚ F. K. S. (2010). Perception of various performance criteria by stakeholders in the construction sector Hong Kong. Construction Management & Economics‚ 28‚ 377- 391. doi:10.1080/01446190903521515 Ivan Lai from Macau University of Science and Technology‚ Macau and Frankie Lam from University of South Australia‚ Adelaide used a research model based on nine performance benchmarks and their corresponding performances. The intent of this
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Explain the procedures which need to be follow when preparing an outing with the children‚ think about before the day and the actual day of the outing. Before organising an outing a purpose must be ascertained such as enhancing the learning‚ providing stimulus to the curriculum‚ giving the children a real experience and to practice skills and relationships in a different context and environment. When planning a visit‚ it must be suitable and relevant for the age range of the children. In the
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PREPARING FOR THE INTERVIEW The interview is a meeting between the applicants and the employer‚ who represent the supply and demand of work. They both have to prepare for this event properly. Heli‚ in this case‚ is our candidate and she has been chosen by the selectors. (If useless delete!!) Heli has received a call from the HRM’s secretary and she is supposed to show up at 9.30 of the 10th of October in (Henry Fordin katu 5 K‚ 00150 HELSINKI‚ Finland). The first step that Heli has to do‚ in
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English 2 FC Anne Zhang Measure For Measure 4/2/12 Encountering love‚ one of the hugest side-effects for either/both participants is change. The playboy or womanizer quits his ways after meeting a special someone. The villain who only wants to cause harm to the whole world finds himself reversing and re-adjusting his life goals because of his insignificant other. (Of course the genders could be reversed.) Or in Angelo’s case‚ the great leader well known for being cold-blooded
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difference; taxable income given LO1 Alvis Corporation reports pretax accounting income of $400‚000‚ but due to a single temporary difference‚ taxable income is only $250‚000. At the beginning of the year‚ no temporary differences existed. Required: 1. Assuming a tax rate of 35%‚ what will be Alvis’s net income? 2. What will Alvis report in the balance sheet pertaining to income taxes? Solution: Requirement 1 Since taxable income is less than pretax accounting income‚ a future taxable
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SYLLABUS BCOM/230 Business Communication for Accountants Copyright ©2014 by University of Phoenix. All rights reserved. Course Description This course introduces students to the foundations of communication in a business accounting setting. Students are exposed to various topics related to interpersonal and group communications within the context of applications to the accounting field. Students will develop skills in the forms of written communication‚ including memos‚ e-mails‚ business
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Company and PepsiCo‚ Inc. provide refreshments to every corner of the world. Selected data from the 2004 consolidated financial statements for The Coca-Cola Company and for PepsiCo‚ Inc.‚ are presented here (in millions).Coca-Cola PepsiCoTotal current assets $ 12‚094 $ 8‚639Total current liabilities 10‚971 6‚752Net sales 21‚962 29‚261Cost of goods sold 7‚638 13‚406Net income 4‚847 4‚212Average (net) receivables for the year 2‚131 2‚915Average inventories for the year 1‚336 1‚477Average total assets
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