The net income of the company during the year was $112,000. A firm’s net income reflects how much profit the company generated during a period of twelve months. The gross profit of the organization was $232,000. Gross profit is a broad measure of profitability.
The new breakeven point is 10,893 units. The changes in the compensation system increased the variable costs of the company. The end result was that the company had a higher breakeven point than with the old compensation system. A higher breakeven point is an undesirable
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This figure was calculated by subtracting variable costs from the sales price. A high contribution margin is a positive indicator of profitability. The contribution margin is used to cover the fixed expenses of the company.
In the first scenario, the firm is recommended to lay off about 10% of its workers and implement specific measures to improve worker productivity such as putting in place a feedback system and introducing a variable pay component. In the second scenario, it is recommended to shut down operations immediately as the gap is too large and it is highly unlikely that the state of break even could be attained.
We have identified a potential source of savings. The labor costs of the company are the key variable that will enable the company to save money. In order to achieve that goal the firm must reduce the number of days the employees come in to work. The changes that are going to be implemented include ten hour days for the managerial staff and the consolidation of the part time workers into 1-2-3 work weeks.
Contents Introduction 2 International Economy 2 Reporting Standards 3 Differences 3 Case Study 4 Inventories 4 Revenue Recognition 5 Introduction The international economic scenario has changed over the past few years. The reason for this change is the advancement of technology and especially information technology.
This is the case, as longevity of service can be used by the courts as an implied contract – that their performance has been satisfactory, therefore, they do not warrant the discharge. For instance, those who have served at the business for more than five years can ask for indemnity compensation.
This will include five key regulatory parts: Employee Privacy, Employee Unions, Occupational Safety and Health Administration (OSHA), Employee Retirement Income Security (ERISA) and Fair Labor Standards Act (FLSA). You need to become aware that some laws do not tell how to deal with staff with the exceptions of unions.
Both these techniques tend to use a predetermined overhead rate while allocating overhead costs to the product units being produced. A well maintained perpetual inventory system is also kept while analyzing
breach of certain required conducts a misdemeanor had occurred from the part of Officer Speedy as an Innocent pedestrian and a speeding sports car driver died during the course of hot pursuit which the department of Officer Speedy did not permit as a policy. In this regard, it
The author states that emissions of specific gasses from vehicles, manufacturing, supply chain and logistics operations like Carbon Dioxide, Methane, Nitrous Oxide and other Fluorinated gases that render harm to the earth’s atmosphere by damaging the Ozone layer is identified as Greenhouse Gas Emission.