Calculate the operating income for August using variable costing.
Lilypad Hot Tubs, Inc. reports the following information for August:
A) $380,000
B) $577,000
C) $307,000
D) $650,000
C) $307,000
Sales Revenue $650,000
- Variable Costs 270,000
Contribution Margin 380,000
- Fixed Costs 73,000
Operating Income $307,000
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In the forward market, the exchange rate is agreed on at the time of the currency contract, but payment is not made until the future delivery of the currency actually takes place.
a. True b. False
Which of the following is not a standard procedure that the auditor normally should follow in the observation of inventory at year-end?
a. Observe the client taking inventory. b. Make selected test counts and trace into client's inventory compilation. c. Look for slow-moving, obsolete or damaged inventory. d. Review disclosure of inventory valuation.
Which of the following is likely to be a discretionary cost in most organizations?
a. managerial training programs b. managerial labor costs c. factory utilities d. factory rent
Which of the following is most likely NOT an example of the follow-up step of the selling process?
A. A salesperson calling a prospect for a buying decision about a product. B. A salesperson evaluating the effectiveness of a product after the sale. C. A salesperson addressing a customer complaint immediately and appropriately. D. A salesperson sending a thank-you note to a customer for a recent product purchase. E. A salesperson conducting a customer satisfaction survey 3 months after the sale.