Maruca Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (9,000 units)$270,000Variable expenses 175,500Contribution margin 94,500Fixed expenses 86,100Net operating income$8,400The margin of safety in dollars is closest to:
A. $8,400
B. $86,100
C. $24,000
D. $94,500
Answer: C
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Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year-old agency around, because it had lost its edge in the Internet age. To infuse new life and energy into the agency, Della wants to bring back some old ideas that previously worked at Sky. She plans on having managers and veteran employees instruct each other about the organization's values, beliefs, and expectations; telling stories about some of the company legendary ad campaigns; coming up with a slogan that summarizes Sky's abilities in a simple and memorable phrase; and having quarterly ceremonies where creativity and innovation are rewarded. The things that Della wants to do are all examples of
A. a value stabilizing plan. B. decentralizing authority. C. embedding culture. D. MBO. E. TQM.
Metro Sales Company offers warranties on all its electronic goods. Warranty expense is estimated at 3.5% of sales revenue. In 2019, Metro had sales of $333,000. In the same year, Metro replaced defective goods with merchandise inventory costing $8,750. Prepare the journal entry to record the replacement of defective goods. Omit explanation.
What will be an ideal response?
Which of the following is true about trends in wholesaling?
A) New laws prevent wholesalers from having their own retailing operations. B) Value-added customer relationships have been replaced by control systems. C) Merchant wholesalers are decreasing in number and relevance. D) The demand for lower prices and higher quality has increased. E) Bulk breaking is increasingly popular and necessary.
Which of the following statements is correct regarding the statement of cash flows?
A) Analysts prefer the direct method to the indirect method. B) Companies prefer the direct method because it is easier and less expensive to prepare. C) A survey of large companies showed 98% of them use the indirect method. D) All of these choices.