Answer:
$460,000 increment in the operating income
Explanation:
Production = 75000
Unit sales price = $420
Sales revenue 31,500,000
Cost of sales
Manufacturing (260*75000) 19,500,000
Gross profit 12,000,000
Marketing and admin (40*75000) 3,000,000
Manufacturing 770000
Marketing * Admin 200000
Operating income 8030000
Revenue for special order = 375*4000 = 1,500,000
Manufacturing cost =4000*260 1,040,000
Gross profit 460,000
There will be an increment of $460,000 in the operating income.
Answer:
The correct answer was supposed to be $36,000 which is not in the given choices.
Explanation:
correct balance in the bank account
= As per bank statement balance - outstanding checks + deposit in transit + check erroneously charged
= $72,000 - $54,000 + $15,000 + $3,000
= $36,000
Answer:
C) $130,000
Explanation:
Based on the lower of cost or market rule, the valued of the inventory would be
Replacement cost = $130,000
Selling price = $150,000 - $150,000 × 10% = $135,000
After considering the normal gross profit ratio, the value would be
= $135,000 - $150,000 × 20%
= $105,000
If we compare the cost and replacement value, then the less value would be considered i.e $130,000
Answer: None
Explanation: The IRS commuting rule allows for business travel expenses to be deducted as business expenses but this does not apply to commuting expenses.
Business travel expenses include Judi driving the company car to customer's locations or using any other form of transportation to meet a client. It even covers travelling by plane to another state for the same purpose.
It however does not apply to travelling between home and work, this is a daily travel expense as you need to get to work anyway.
