Clay Earth Company sells ceramic pottery at a wholesale price of $5 per unit. The variable cost of manufacture is $2.50 per unit. The fixed costs are $6200 per month. It sold 5700 units during this month. Calculate Clay Earth's operating income (loss) for this month.
A) $22,300
B) $8050
C) ($8050)
D) ($6200)
B) $8050
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Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of $270,000 and accumulated depreciation of $135,000. The new sailboat had an invoice price of $282,000. Hunter received a trade in allowance of $147,000 on the old sailboat, which meant the company paid $135,000 in addition to the old sailboat to acquire the new sailboat. If this transaction has commercial substance, what amount of gain or loss should be recorded on this exchange?
A. $135,000 loss B. $147,000 gain C. $12,000 loss D. $12,000 gain E. $0 gain or loss
Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: Year 2Year 1Cash$74,000 $130,000 Accounts receivable, net$255,000 $240,000 Inventory$173,000 $180,000 Total current assets$564,000 $610,000 Total assets$1,350,000 $1,330,000 Accounts payable$170,000 $160,000 Total liabilities$633,000 $620,000 Total stockholders' equity$717,000 $710,000 Sales (all on account)$1,290,000 Cost of goods sold$700,000 The company's accounts receivable turnover for Year 2 is closest to:
A. 0.94 B. 1.06 C. 5.21 D. 5.06
If the value of the Durbin-Watson test statistic, d, satisfies the inequality d > 4 - dL, we conclude that positive first-order autocorrelation exists
Indicate whether the statement is true or false
Liability coverage provides payment to:
A) the insured for damage. B) the family members of the insured. C) the holder of an auto loan. D) the lawyer needed to defend criminal charges. E) the non-family members involved in the accident.