What factors must be taken into consideration during the selection process of an arbitrator?
- the number of arbitrators to be chosen
- the expertise of the arbitrator

Answers

Answer 1

The factors that must be taken into consideration during the selection process of an arbitrator are: the number of arbitrators to be chosen and the expertise of the arbitrator.

A dispute is resolved by an arbitrator, a neutral third party, based on the evidence presented by the parties. The arbitrator's ruling may or may not be enforceable in court, but if it is, neither party may later bring a lawsuit to challenge the outcome.

The arbitrators listen to the arguments of the disputing parties and use that information to come to a just conclusion that is advantageous to all parties. Because it is faster, safer, less expensive, and gives the parties more privacy, arbitration is typically chosen over litigation.

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Related Questions

Which type of communication has replaced many other types of
communication over the years?
O A. Phone calls
O B. Memos
• C. Email
O D. Faxes

Answers

Answer:

C. Email

Explanation:

Over the years, electronic communication, specifically email, has replaced many other types of communication such as phone calls, memos, and faxes. The widespread availability of the internet and the convenience of being able to send and receive messages quickly and efficiently have made email a popular choice for both personal and professional communication. Additionally, email has the added benefit of being easily searchable and archivable, making it a useful tool for organizing and tracking communication.

picture frames selling at $45 each have a variable cost is $15 each. the fixed costs of operating the shop are $7,500 per month. given this data, the break-even point in number of units is

Answers

The breakeven point in number of units, given the variable cost and the fixed costs, can be found to be 250 units

How to find the break - even point ?

To calculate the break-even point in number of units, we need to find the quantity of units that will generate enough revenue to cover the total costs (both variable and fixed costs).

The formula for the breakeven point in units is:

= Fixed costs / ( Selling price of frames - Variable costs )

Fixed costs = $ 7, 500

Variable cost = $ 15

Selling price = $ 45

The breakeven point is:

= 7, 500 / ( 45 - 15 )

= 250 units

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which of the following did not contribute to the growth of a consumer culture in the united states at the close of the nineteenth century? group of answer choices personal credit advertising greater disposable income mail-order catalogs

Answers

None of the options listed could be completely excluded as a factor that contributed to the growth of a consumer culture in the United States at the close of the nineteenth century.

However, if we had to choose an option that was least directly related to the growth of consumer culture, it would be "greater disposable income." Although an increase in disposable income would have provided consumers with the means to purchase more goods and services, it was not the only factor driving the growth of consumer culture in the late nineteenth century. Personal credit, advertising, and mail-order catalogs all played significant roles in creating a culture of consumption by encouraging consumers to buy more goods and services and to do so on credit or through the convenience of mail-order shopping. Advertising, in particular, played a crucial role in creating a culture of consumption by creating a desire for new products and linking those products to personal happiness and social status. Mail-order catalogs also contributed to the growth of consumer culture by making a wider variety of goods available to consumers in rural areas and by providing an easy way for consumers to purchase goods from the comfort of their homes.

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T/F according to the resource-based model, a firm is assumed to be a unique bundle of resources, capabilities, and competencies.

Answers

The resource-based model assumes that a company is an individual collection of resources, capabilities, and competencies. It's True.

What is a Firm?

A firm is a for-profit business that provides professional services, such as a corporation, limited liability company (LLC), or partnership. Most businesses only have one location. A business, on the other hand, is made up of one or more physical locations that are all owned by the same person and use the same employer identification number (EIN).

The term "firm" can be used to describe a wide range of businesses, including finance, consulting, marketing, and graphic design firms, among others. When it is used in a title, "firm" is typically associated with businesses that provide professional services in the fields of law and accounting.

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T/F businesses use podcasting for sending audio and video messages that do not require a live presence yet offer a friendly human face.

Answers

The given statement "businesses use podcasting for sending the audio and the video messages that do not require a live presence yet offer a friendly human face" is true. Because businesses use podcasting as a form of digital media to send audio and video messages to their audience.

Podcasts allow companies to create and distribute content that can be consumed at any time, rather than requiring a live presence. This makes it a convenient and cost-effective way for businesses to connect with their audience and establish a relationship.

Additionally, podcasts often have a conversational and informal tone, which can help to humanize the business and create a sense of connection with the audience. Therefore, businesses often use podcasting as a way to offer a friendly human face and connect with their audience.

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allows firms to improve how they manage their employees, supply chain, and/or manufacturing processes to maximize customer value and sustain competitive advantage.

Answers

Operational Excellence allows firms to improve how they manage their employees, supply chain, and/or manufacturing processes .

Option A is correct.

Operational excellence:

Focusing operational principles, systems, and tools on increasing customer satisfaction with a company's products and services is operational excellence. In order to achieve long-term improvement within an organization, operational excellence is a mindset that embraces a number of principles and techniques. To put it another way, operational excellence is attained when each employee of an organization is able to perceive the flow of value to the customer.

What function does operational excellence serve?

Focusing on running a profitable business so that it can deliver value to customers faster, cheaper, and better is their primary responsibility. Excellence in operations is not something extra. It's not a title or job; rather, it's a way of doing things that should be incorporated into all business-related work.

Question incomplete:

________ allows firms to improve how they manage their employees, supply chain, and/or manufacturing processes to maximize customer value and sustain competitive advantage.

A. Operational Excellence

B.  Reinforcement

C. Niche marketing

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Question 11
Which of the following statements about our oceans is false?

Answers

The statement that is false about the ocean is its average depth is about 400m. The ocean is the body of saltwater that covers approximately 70.8%.

What is an ocean?

The ocean is the body of saltwater that covers approximately 70.8% of the surface of Earth and contains 97% of Earth's water. An ocean can also refer to any of the large bodies of water into which the world ocean is conventionally divided. Separate names are used to identify five different areas of the ocean: Pacific, Atlantic, Indian, Antarctic/Southern, and Arctic. Seawater covers approximately 361,000,000 km2 the planet.

The ocean is the principal component of Earth's hydrosphere, and therefore integral to life on Earth.

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_____ was not alone in asserting that the united states was rapidly and by necessity becoming an entrepreneurial economy.

Answers

The United States is rapidly and inescapably transitioning to an entrepreneurial economy, Pete Druker claimed, but he was not alone in this assertion.

How can entrepreneurship contribute to the economic growth of a nation?

They stimulate new employment through the development of novel goods and services, which eventually accelerates economic growth. Therefore, it should be understood that entrepreneurship-promoting public policy is crucial for economic growth.

What role does an entrepreneur play in business?

Innovation and creativity, taking calculated risks, succeeding in those risks, organizing and managing one's business, catalyzing economic growth, getting through resistance to change, and doing research are some of the various aspects of entrepreneurship.

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The purpose of the closing process is to reset ____ (temporary/permanent)

Answers

The general ledger, the method for keeping track of a company's financial information, uses the closing entry to reset the temporary account balances to zero. To document accounting activities for a certain time period, temporary accounts are employed.

What serves as the closing process' objective?

The Closing Process is a phase of the accounting cycle that takes place after the conclusion of the accounting period, following the completion of the financial statements. This serves to prepare things for the following year. You must be familiar with the distinction between permanent and temporary accounts in order to comprehend this.

A transitory account is one that closes at the end of each accounting period and has no balance when a new period begins. To prevent their balances from being combined with those of the subsequent accounting period, the accounts are closed.

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In Part 2-2 we discussed the business sector and the difference between intermediate goods/inputs and final goods. Which of the following would be considered capital inputs for a law firm? Check the correct answer D Labor Office supplies Legal counsel and advice Company computers O None of these

Answers

Final goods are those that have undergone all necessary processing. These items, which are frequently referred to as consumer goods, are made with the idea that the end user will consume them directly.

The products that businesses use to create other products or services are known as intermediate goods. These things are also referred to as producer goods.In other words, intermediate products are used to make final goods or consumer goods, or you might say that they are a part of final goods and are used as inputs in the manufacturing of other commodities.Now let's look at the differences between intermediate and completed goods.The difference between finished and intermediate goods

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While most business communication is now done electronically, there remain situations in which a business letter is most appropriate.
In certain situations, business letters are most appropriate for delivering messages______(inside/outside) an organization. Business letters convey a sense of_______ (concern/ formality/ levity) and _________( warmth/ importance/gratitude) .

Answers

In certain situations, business letters are most appropriate for delivering messages outside an organization. Business letters convey a sense of formality and importance.

Which circumstances call for business letters to be used the most effectively to convey information?

When a permanent record is required, confidentiality is essential, sensitivity and formality are essential, and you need to make a persuasive, professional presentation, a business letter is the best channel to choose.

What is a business letter primary purpose?

There are many different types of content that can be included in business letters, such as a direct request for information or action from another party, an order for supplies from a supplier, a correction to a request, an apology, or a message of goodwill.

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uiz Instructions
Question 15
Acme Blasting is imploding a bridge in a construction zone. They follow all of the necessary safety precautions. Unfortunately, the
force of the blast causes extensive damage to Tom's home. Under what doctrine is Acme liable?

Answers

Based on the given information, The doctrine is Acme liable is for mitigating damages or Corrective controls.

What is mitigating damages?

A common legal defense in negligence or contract law is the mitigation of damages. According to this theory, an injured party cannot be compensated for unauthorized costs incurred as a result of their harm if they reasonably could have prevented them.

After a risk has manifested, corrective controls aid in limiting damage. The organization can strengthen its procedures and guidelines by enforcing them when necessary through notices and employee termination.

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Lisa has recently bought a fixed annuity. What is considered to be a disadvantage of owning this type of annuity?

Answers

Owning a fixed annuity has the drawback of perhaps providing lesser potential returns when compared to alternative investment options.

The lack of flexibility provided by fixed annuities is one drawback of buying one. The terms of the annuity are normally locked in for the annuity bearer for a predetermined amount of time, which can range from several years to many decades. This may make it more difficult for the account user to retrieve their money quickly or to modify their investment plan as their needs evolve. Additionally, compared to alternative investing options like stocks or mutual funds, fixed annuities sometimes provide lower rates of return. This implies that, particularly if inflation rates increase over time, the holder may miss out on potentially higher profits.

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the increasing impact of climate risk on financial performance is causing shareholders to demand sustainable business practices for long-term growth, leading to a rise in esg (environmental, social, and governance) investing. however, this demand may not be enough to motivate managers to adopt sustainable practices due to the separation of management and control. environmental regulations, by holding managers a _____.

Answers

In general, all of these choices do really address the region's environmental issues. There are many different methods for resolving problems with the ecosystem and the environment.

"Coordination of environmental efforts between sectors," "forcing of environmental legislation," and "sustainable land management techniques" are the answers to environmental issues. Any region's environmental issues could pose a hazard since they could have a bigger negative impact on the residents' health. Any environmental issue in a region must be eliminated, and this requires strong cooperation between sectors. This will enable an issue to be resolved swiftly and efficiently. In order to address environmental issues, environmental regulation laws and regulations must be strictly enforced. Practices in land management are those that combine the management of land, water, biological variety, and other resources in the environment to suit human requirements.

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the Unearned Revenue account should be reduced and the Service Revenue account increased for the amount of revenue ___ during the perioddeferralearneddeferralnet income

Answers

the Unearned Revenue account should be reduced and the Service Revenue account increased for the amount of revenue earned during the period.

Explain unearned income?

Unearned income is cash received by a company from a client before a good or service is actually provided. It is a prepayment that a business accumulates and records as a liability on the balance sheet up until the customer receives a service or receives a product.

What is the proper way to record unearned revenue?

Unearned money is recognized on the balance sheet as a liability rather than being recorded as income on the income statement until it is "earned". Once the product or service is delivered, the revenue is recognized gradually over time.

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Assume that 25% of Estonia's trade is with country A and 75% of its trade is with country B. Estonia's currency depreciates 40% against country A's currency and appreciates 20% against country B's currency. Which of the following is TRUE?
A. The effective exchange rate has appreciated by 5%.
B. The effective exchange rate has appreciated by 25%.
C. The effective exchange rate has depreciated by 5%.
D. The effective exchange rate has depreciated by 25%.

Answers

The effective exchange rate for Estonia has appreciated by 25%, which means that option B is the correct answer.

To determine the change in the effective exchange rate for Estonia, we need to calculate the weighted average of the change in the exchange rate against country A and country B.

Let's assume that the initial exchange rate for Estonia's currency is 1:1 with country A's currency and 1:1.5 with country B's currency. After the changes, the new exchange rates are 1:1.4 with country A's currency and 1:1.2 with country B's currency.

The weight of country A in Estonia's trade is 25%, and the weight of country B is 75%. So the weighted average of the change in the exchange rate is:

(25% x 40%) + (75% x 20%) = 10% + 15% = 25%

This means that  Estonia has appreciated the effective exchange rate by 25%. Therefore, the correct answer is option B.

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On December 31 , a company is preparing its year-end financial statements. All account balances have been updated for transactions during the year, but no year-end adjusting entries have yet been made. The following information is available: - On September 1 , the company paid $60,000 to rent a storage facility for 12 months.- On November 1, the company recelved $36,000 from a customer for services to be provided evenly over the next six months. - During the year, the company paid and recorded $30,000 in income tax expense. On December 31 , the company determines it owes additional income tax of $10,000 but that amount won't be paid until next April 15 . - On Aprill, the company lent $100,000 to one of its suppliers. The principal and 8% interest are due in one year. (Note: The interest is simple interest and not compound.)

Answers

After modifying inputs, the amount owing in one year for the principal and 8% interest is $2,000.

What do you mean by financial statements?

Financial statements are documents that describe a company's operations and financial performance. Government organizations, accounting companies, etc. frequently audit financial statements to guarantee accuracy and then for tax, financing, or investment purposes.

Before adjusting entries   $10,000

After adjusting entries        -2,000

Calculated as:

Net income before adjusting entries (given)   $ 10,000

Less: Rent expense for 4 months                   60,000/12*4 = -20,000

Add: Revenues from customers service

for 2 months                                                       36,000/6*2 = 12,000

Less: income taxes                                        -10,000

Add: interest on notes for 9 months           100,000*8%*9/12 = 6,000

After adjusting entries                                        -2,000

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FILL IN THE BLANK. When it comes to selecting target markets, the best product cannot be successful, no matter how large the target market is, if that segment is ______.

Answers

When it comes to selecting target markets, the best product cannot be successful, no matter how large the target market is, if that segment is  too expensive or impossible to reach.

What is strategy for the target market?

A business plan that focuses on increasing sales and brand awareness among a specific group of customers is called a target market strategy. Businesses strategize in this manner based on the demographics of a market, which is an area or group designated for product sales.

What are characteristics of the target market?

Typically, a set of characteristics used to define target markets include: Information about the population, including the age range, marital status, and income level. Information about the area, like specific cities or zip codes. Information about one's personality, such as one's values, interests, and way of life.

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In May, Rec Rooms, Inc., collected $8,000 owed by customers for services performed in April. Show the effect of this collection on the accounting equation.

Answers

The effect of the $8,000 collection on the accounting equation is an increase in cash and an increase in retained earnings (or net income), resulting in an increase in equity.

The effect of the $8,000 collection on the accounting equation would be:

Assets: Cash increases by $8,000

Equity: Retained earnings (or net income) increases by $8,000

Since the company has collected $8,000 from its customers, this amount would be recorded as a cash inflow, which would increase the company's cash balance. The increase in cash would, in turn, increase the company's retained earnings (or net income), since the company has earned this revenue by providing services to its customers. The increase in retained earnings would also increase the company's equity.

Thus, the effect of the $8,000 collection on the accounting equation would be:

Assets = Liabilities + Equity

Cash (+$8,000) = 0 + Retained Earnings (+$8,000)

Therefore, the accounting equation remains in balance after the collection of $8,000.

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From an accounting standpoint, legal ownership of a leased asset is ____ to the accounting method used. a. relevant b. irrelevant.

Answers

From an accounting standpoint, legal ownership of a leased asset is irrelevant to the accounting method used.

The accounting method used in a lease transaction is based on the classification of the lease as either an operating lease or a capital lease. If the lease is classified as an operating lease, the lessee will record a monthly expense on their income statement. If the lease is classified as a capital lease, the lessee will record the asset and associated liability on their balance sheet. In either case, the lessee will not record the legal ownership of the asset.

The legal ownership of the asset is only relevant to the rights and responsibilities of the lessor and lessee. For example, the lessor is legally responsible for the asset in an operating lease, while the lessee is legally responsible for the asset in a capital lease. In addition, the lessor typically retains legal ownership of the asset, even in a capital lease, and may have certain rights to the asset, such as the right to repossess it if the lessee defaults on their payment obligations.

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Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,000 remotes is as follows:Cost Direct materials $ 65,000 Direct labor $ 55,000Variable overhead $ 30,000 Fixed overhead $ 50,000 Total $ 200,000 Frannie is approached by Lincoln Company which offers to make the remotes for $18 per unit. Required: 1. Compute the difference in cost between making and buying the remotes if none of the fixed costs can be avoided. What is the change in net income? 2. Compute the difference in cost between making and buying the remotes if $20,000 of the fixed costs can be avoided. What is the change in net income? 3. What is the change in net income if fixed cost of $20,000 can be avoided and Frannie could rent out the factory space no longer in use for $20,000?

Answers

A cost per unit is equal to $3 (180000-150000)/10000. Profit gain (loss) = $ 30,000 A cost per unit is equal to ($1; (180000-170000) /10000. Profit swing (loss) = $10,000 $ 10,000 is a gap in net income (gain).

How much is a cost unit with an example?

The cost unit for the steel industry would be the ton, whereas the expense unit for the hotel industry would be the room. The cost center lays this out. In cost units, there are both simple and complex units.

How do I determine the unit cost?

The entire number of troops produced is divided by the total cost, which is calculated by adding the variable and fixed costs.

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NGOs that seek to promote ethical and socially responsible business practices are generating substantial changes in all of the following areas except _____.
A. corporate management
B. business development
C. strategy
D. corporate governance

Answers

NGOs that seek to promote ethical and socially responsible business practices are generating substantial changes in all of the following areas except B. business development.

In the term of economy and business, business ethics generally can be defined as the standards for morally right and wrong conduct in business. In the other side, business ethnic also can be defined as a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems. Ethnical problems in the business ethnic  can arise in a business environment. Business ethnic is an important aspects and it can be applies to all aspects of business conduct.

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botswana and namibia are countries in africa specializing in mining gems. suppose botswana can mine 100 carats of diamonds or 200 rubies in one day, while namibia can mine 120 carats of diamonds or 80 rubies in one day. the opportunity cost of one diamond is _____ in botswana and _____ in namibia.0.5; 0.672.0; 1.50.5; 1.52.0; 0.67

Answers

The expected cost of one stone is 2 ruby in Botswana versus 0.67 rubies for Namibia.

What does mining signify to you?

Extraction of there used from the ground is known as mining. Mined materials include anthracite, gold, and iron ore, just name a few. The raw material used to make iron was called iron ore. Mining has been since the ancient era.

What purposes will mining serve?

Construction of roads, schools, autos, homes, satellites, computer, and a variety of other consumer-favorite services and goods all need the usage of mined resources. Additionally, mining is economically significant for producing nations and localities.

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shampooch has built up an excellent reputation in its local area. during busy periods, customers have to book at least two weeks in advance. as a result, the owners are considering increasing the selling price from £28 to £30 for a fill groom, wash, cut and blow dry.

Answers

If 120 dogs are groomed each month, the total variable cost is £960, and the total fixed cost is £1,040. The monthly cost of grooming 120 dogs is £1,000.and price £1960 will be spent grooming 120 dogs each month.

Provide a detailed explanation with a computation?

No matter how many dogs are groomed, a fixed cost is one that never changes. The fixed cost would not change whether 100 dogs or one dog were groomed.A variable cost is one that rises as more dogs are groomed.The total cost is the sum of the fixed and variable costs.total cost that is variable.Overall variable costs are calculated by multiplying the number of dogs by the variable cost per dog.

£8 x 120 = £960

Total fixed expenses If 120 dogs are groomed monthly, the cost is £1,000.

Costs in total: £960 + £1000 = £1960

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The following question is incomplete the complete question is as follows:

Shampooch is a dog grooming business focused on providing a high quality and professional

service. The selling price for a full aroom, wash, cut and blow dry is £28 per dog with

variable cost of £8 per dog. The fixed costs are 1,000 per month

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a) the total variable cost if 120 dogs are groomed per month

b) the total fixed costs If 120 dogs are groomed per month

c)the total costs If 120 dogs are groomed per month

which of the following indicates that the macroeconomy is achieving its economic goals? which of the following indicates that the macroeconomy is achieving its economic goals? economic growth declining gdp inflation deflation unemployment

Answers

The most accurate indicator of whether the macroeconomy is achieving its economic goals is economic growth.

Economic growth is an increase in a country's production of goods and services in a given period of time. It is usually measured as a percentage change in the gross domestic product (GDP).

Economic growth can be achieved through different policies such as fiscal and monetary policies, investment in infrastructure and human capital, and technological advancements. Economic growth is essential for a country's standard of living, employment, and economic security.

If economic growth is increasing, it is a sign that the macroeconomy is achieving its goals. Declining GDP, inflation, deflation, and unemployment are all signs that the macroeconomy is not meeting its goals.

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Assuming that Lucy fraudulently made a misrepresentation regarding the spring running through the corner of the farm knowing the statement was not correct, which of the following is true, considering only the lack of a spring issue, if Marcy does not want to go through with the sale?
A. Marcy may rescind the contract, and she will recover $10,000 in damages which is an amount set by federal law.
B. Marcy may rescind the contract, but she may not recover damages.
C. Marcy may sue for compensatory damages regardless of whether she can establish injury, but she may not rescind the contract.
D. Marcy may rescind the contract, and she may also sue for compensatory damages if she can establish injury.
E. Marcy may rescind the contract and she may also recover damages, but only nominal damages.

Answers

B. Marcy may rescind the contract, but she may not recover damages is true, considering only the lack of a spring issue, if Marcy does not want to go through with the sale.

A sale is a serious offer a group of individuals when either tangible or intangible products, services, or assets are swapped for cash. A seller may designed to consider assets in in addition to cash. In the financial system, a sale can also be characterized as a contract between a buyer and a seller specifying the dollar amount and shipping information of a financial security. A sale is fundamentally a contract in between seller of a certain item or service and a buyer whom are willing to pay for said good or service, regardless of the setting.

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during the sales-oriented era, blank . multiple choice question. firms believed a good product would sell itself manufacturers focused on product innovation, not satisfying consumer needs manufacturers had the capacity to produce more than consumers were able to buy the consumer held all the power in the buyer-seller relationship

Answers

During the sales-oriented era, "Manufacturers had the capacity to produce more than consumers were able to buy", so the correct option is C.

The sales-oriented era, which lasted from the 1920s to the 1950s, was characterized by a focus on mass production and sales techniques to sell products. During this time, manufacturers had the capacity to produce goods on a large scale, but consumers were not yet able to purchase everything that was produced.

As a result, companies placed more emphasis on selling their products rather than on satisfying consumer needs. Companies believed that a good product would sell itself and focused on product innovation rather than on understanding and meeting consumer needs.

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Which of the following strategies most likely could improve the response rate of the confirmations of accounts receivable?
a. Restrict the selection of accounts to be confirmed to those customers with large balances.
b. Include a list of items or invoices that constitute the customer's account balances.
c. Explain to customers that discrepancies will be investigated by an independent third party.
d. Ask customers to respond to the confirmation requests directly to the auditor by fax.

Answers

Asking customers to respond to the confirmation requests directly to the auditor by fax, is the strategy most likely to improve the response rate of the confirmations of accounts receivable. Here option D is the correct answer.

When confirmations of accounts receivable are sent directly to the customers, it is possible that they may not respond or may respond incorrectly due to various reasons, such as oversight or lack of understanding.

By requesting customers to respond directly to the auditor by fax, it ensures that the confirmation has been received by the auditor and eliminates any delays or errors that may occur during the communication between the customer and the client.

Restricting the selection of accounts to be confirmed to those customers with large balances (Option A) may not necessarily improve the response rate, as customers with smaller balances are just as likely to provide a timely response.

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Which of the following is an example of an intermediate term debt? O a sixty-month car loan a fifteen year mortgage a thirty year U.S. Treasury bond a six month loan from a finance company Moving to another question will save this response

Answers

Option (a), A automobile loan with a 60-month term is an example of an intermediate term loan.

An intermediate-term loan is what?

Mortgages with a medium term: One to three years is the typical loan term, and monthly payments are taken out of the company's cash flow. Long-term debt These loans can have a repayment period of three to twenty-five years. On a monthly or quarterly basis, they demand payments from profits or cash flow and pledge company assets as security.

The typical term of a loan with an intermediate term is one to three years. They assist in providing financing for short-term investments. A new computer with a three-year economic life, for instance, might be something you want to purchase.

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The complete question is;

Which of the following is an example of an intermediate term debt?

(a). a sixty-month car loan

(b). a fifteen year mortgage

(c). a thirty year U.S. Treasury bond

(d). a six month loan from

(e). a finance company Moving to another question will save this response

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:



Sales $ 480,000
Beginning merchandise inventory $ 32,000
Purchases $ 320,000
Ending merchandise inventory $ 16,000
Fixed selling expense ?
Fixed administrative expense $ 19,200
Variable selling expense $ 24,000
Variable administrative expense ?
Contribution margin $ 96,000
Net operating income $ 28,800


Required:

1. Prepare a contribution format income statement.

2. Prepare a traditional format income statement.

3. Calculate the selling price per unit.

4. Calculate the variable cost per unit.

5. Calculate the contribution margin per unit.

6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in response to changes in unit sales?

Answers

Contribution Format Income Statement

Sales (1,000 units) $480,000

Less: Variable Costs:

Cost of Goods Sold $320,000

Selling Expenses 24,000

Administrative Expenses 0

Contribution Margin $136,000

Less: Fixed Costs:

Selling Expenses 19,200

Administrative Expenses 0

Net Operating Income $116,800

What is Traditional Format Income Statement?

Generally, Traditional Format Income Statement

Sales (1,000 units) $480,000

Less: Cost of Goods Sold $320,000

Gross Margin $160,000

Less: Selling Expenses 24,000

Administrative Expenses 19,200

Net Operating Income $116,800

Selling Price Per Unit = $480,000/1,000 = $480

Variable Cost Per Unit = $320,000 + $24,000 = $344

Contribution Margin Per Unit = $480 - $344 = $136

The contribution format income statement would be more useful to managers in estimating how net operating income will change in response to changes in unit sales because it provides a clearer view of the impact of changes in unit sales on net operating income.

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