The practice of accepting a selling price when there is excess capacity, as long as it exceeds variable cost is called:
a. Contribution pricing.
b. Differential pricing.
c. Capacity pricing.
d. Special pricing.
a
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Which of the following will result in the dissolution of a partnership?
A) admission of a new partner B) purchase of plant assets for the business C) contribution of an asset by an existing partner D) a partner's withdrawal of cash from the partnership
Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per UnitPercent of SalesSelling price$140 100%Variable expenses 56 40%Contribution margin$84 60% Fixed expenses are $275,000 per month. The company is currently selling 4,000 units per month. Required:The marketing manager believes that a $13,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
What will be an ideal response?
How should an organization with an ERP system plan for a disaster?
What will be an ideal response?
Partnerships and S corporations must classify their business and rental activities by applying the passive activity rules at the partnership or S corporation level and then must report the results of their operations by activity to the partners or shareholders.
Answer the following statement true (T) or false (F)