Excellence in Business Communication (12th Edition)
Excellence in Business Communication (12th Edition)
12th Edition
ISBN: 9780134319056
Author: John V. Thill, Courtland L. Bovee
Publisher: PEARSON
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Chapter 2, Problem 11LOC
Summary Introduction

To determine:

What do listeners do immediately after receiving a message?

Introduction:

The future success of a long-term career is highly dependent on one’s listening skills. By being a good active listener, it helps in strengthening the organizational relationships, shows what areas to improve by being more opportunistic, and deal with diversity in an organization positively. There are different modes of listening such as content listening where information communicated is retained, critical listening where the message is understood and evaluated, empathic listening where the feelings of the speaker are understood, and active listening where the receiver tries to grasp the full meaning of the message. The listening process has 5 steps namely receiving, decoding, remembering, evaluating, and responding.

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Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,000 kayaks and sold 750. at a price of $1,000 each. At this first year-end, the company reported the following income statement information using absorption costing. Sales (750 $1,000) $750,000 Cost of goods sold (750 $450) 337,500 Gross margin 412,500 Selling and administrative expenses 240,000 Net income $172,500 Additional Information: a. Production cost per kayak totals $450, which consists of $350 in variable production cost and $100 in fixed production cost the latter amount is based on $100,000 of fixed production costs allocated to the 1,000 kayaks produced. b. The $240,000 in selling and administrative expense consists of $95,000 that is variable and $145,000 that is fixed. Required: Prepare an income statement for the current year under variable costing.
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