MA9902C00 Lecture Notes - Gottfried Haberler, Global Exchange, Mercantilism

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mahimaajith0204

23 Feb 2023

School

Mahatma Gandhi University

Department

Accounting

Course

MA9902C00

Professor

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Levy, additionally called traditions obligation, charge required upon merchandise as they cross public limits, ordinarily by the public authority of the bringing in country. The words levy, obligation, and customs can be utilized reciprocally. A simply defensive obligation will in general move creation away from the commodity enterprises and into the safeguarded homegrown ventures or different businesses delivering substitutes for which request is expanded. If, then again, a nation wishes to safeguard its home businesses, its rundown of safeguarded items will be long and the tax rates high. Political objectives frequently inspire the burden or evacuation of levies. Taxes might be additionally characterized into three gatherings travel obligations, trade obligations, and import obligations. This sort of obligation is imposed on items that begin in one nation, cross another, and are relegated to a third. As the name suggests, travel obligations are demanded by the country through which the products pass.

Related Questions

The state of Delta has passed a law that states âthe use taxcollection obligation applies to any business that enters into anagreement with any person in Delta for a fee or other considerationin exchange for that person directly or indirectly referringpotential purchasers of that businessâs product by an internetbased link or an internet website accessible in Delta tocustomers.â X Corporation has a website in Delta accessible by itscustomers in the state and pays a fee to the company in Deltamaintaining the website. X Corporation sells $10,000 worth ofproduct to customers in Delta. It has no physical presence inDelta. Is X Corporation liable for use tax collection in Delta?Why? Is so, what arguments might X Corporation make against theimposition of the collection obligation? How do you think this willbe decided considering the Supreme Court decision in Quill?

orangedog100

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:


Sales	$	360,000
Beginning merchandise inventory	$	24,000
Purchases	$	240,000
Ending merchandise inventory	$	12,000
Fixed selling expense	$	?
Fixed administrative expense	$	14,400
Variable selling expense	$	18,000
Variable administrative expense	$	?
Contribution margin	$	72,000
Net operating income	$	21,600

Required:

1. Prepare a contribution format income statement.

2. Prepare a traditional format income statement.

3. Calculate the selling price per unit.

4. Calculate the variable cost per unit.

5. Calculate the contribution margin per unit.

6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales?

sapphirehyena14

Problem 1-19 Traditional and Contribution Format IncomeStatements [LO1-6]

Todrick Company is a merchandiser that reported the followinginformation based on 1,000 units sold:


Sales	$	285,000
Beginning merchandise inventory	$	19,000
Purchases	$	190,000
Ending merchandise inventory	$	9,500
Fixed selling expense	$	?
Fixed administrative expense	$	11,400
Variable selling expense	$	14,250
Variable administrative expense	$	?
Contribution margin	$	57,000
Net operating income	$	17,100

Required:

1. Prepare a contribution format income statement.

2. Prepare a traditional format income statement.

3. Calculate the selling price per unit.

4. Calculate the variable cost per unit.

5. Calculate the contribution margin per unit.

6. Which income statement format (traditional format orcontribution format) would be more useful to managers in estimatinghow net operating income will change in responses to changes inunit sales?

Prepare a contribution format income statement.

Todrick Company
Contribution Format Income Statement
Sales
Variableexpenses:
Cost of goodssold
Sellingexpense
Administrativeexpense

		0
Contributionmargin
Fixedexpenses:
Sellingexpense
Administrative expense

		0
Net operatingincome

olivechinchilla185

MA9902C00 Lecture Notes - Gottfried Haberler, Global Exchange, Mercantilism

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