A firm presently has total sales of $100,000 . If its sales rise, its
a. net income based on variable costing will go up more than its net income based on absorption costing.
b. net income based on absorption costing will go up more than its net income based on variable costing.
c. fixed costs will also rise.
d. per unit variable costs will rise.
A
You might also like to view...
Venus Motor Company has two plants from which it manufactures cars: Nevada, U.S. and Mexico. In addition, all executives of Venus and its subsidiaries are offered a discount when they lease cars from the company. All gross receipts are from the sales and leases of cars produced by Venus. In addition, all car leases are leases of cars produced in the Nevada plant. The following reflects the gross receipts from the various business activities: Sale of cars produced in Nevada-$1,700,000 Sale of cars produced in Mexico-450,000 Leasing cars to customer-400,000 Leasing cars to executives of the subsidiaries of Venus-250,000 Leasing cars to executives of Venus Motor Company-100,000 Sale of cars produced in Nevada to executives of Venus and its subsidiaries-50,000 What is the amount of gross
receipts that qualify as domestic production gross receipts (DPGR)? a) $2,500,000 b) $2,100,000 c) $2,150,000 d) $2,400,000
All of the following ratios are used to compute the TNI EXCEPT:
A. foreign employment to total employment. B. foreign assets to total assets. C. foreign sales to total sales. D. foreign assets to total unemployment.