Answer:
Acquisition price for 30% share $3,000,000
($36,000 / $120,000 * 100)
Add: Net income $180,000
($600,000 * 30%)
Less: dividend ($108,000)
($360,000 * 30%)
Less: excess depreciation <u>-($45,000)</u>
($1,200,000 / 8 yrs*30%)
Investment reported in Balance <u>$3,027,000</u>
Sheet 2018
75 I think not 100% but that makes Sense
Situations and scenarios affects the ability of managers to make rational decisions.
Let understand that an approach of making rational decisions is based on obtained data which effectively allows decision-making, thereby reducing chances of errors, assumptions and all causes for poor judgments
- Thus, the main key for decision-making strategy is information and data management.
- The problem cited by Hebert Simon is because some of decision made by managers are based on assumptions.
In conclusion, quick and rational decisions should be embraced by manager although its requires keeping a track of information and data of different scenarios.
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Answer:
Break-even point in dollars is b) 810,811
Explanation:
Break-even point is the amount of sales in a company when there is no lost nor earnings. When the sales cover both fixed costs and variable costs.
It is calculated with the fixed cost divided to the porcentage of contribution margin.
step 1: % of contribution margin
CMg/total sales
($90,000+$280,000)/$1,000,000=0.37 %CMg
Step 2: Break-even point
FC/%CMg
$300,000/0.37=$810,811