Chapter 15, Problem 15.31E

Can you explain the correct methodology to solve this general accounting problem?

Ans

What was the net income?

Abigail, a manufacturer of audio equipment for home theatres, has current sales of $72 million and variable operating costs of $50.4 million. Abigail expects to increase sales in the coming year by 15% while keeping fixed operating costs constant at $14.8 million. What is the DOL for Abigail? a. 1.75 . 2.85 c. 3.18 d. 4.25

Fixed overhead:55, Variable overhead:25

Hello tutor solve this question and general accounting question

Eagles Manufacturing uses the declining balance method of depreciation. They purchased a machine for $160,000 with an estimated salvage value of $20,000 and a useful life of 5 years. Using a declining balance rate of 30%, calculate the depreciation expense for the second year of the machine's use.

Can you explain the correct methodology to solve this general accounting problem?

Please given correct answer for General accounting question I need step by step explanation