The following income statement was drawn from the records of joel company, a merchandising firm: joel company income statement for the year ended december 31, 2018 sales revenue (2,000 units × $125) $ 250,000 cost of goods sold (2,000 units × $65) (130,000 ) gross margin 120,000 sales commissions (10% of sales) (25,000 ) administrative salaries expense (30,000 ) advertising expense (20,000 ) depreciation expense (24,000 ) shipping and handling expenses (2,000 units × $1.00) (2,000 ) net income $ 19,000 required reconstruct the income statement using the contribution margin format. calculate the magnitude of operating leverage. use the measure of operating leverage to determine the amount of net income joel will earn if sales increase by 10 percent.

Last week paul, ceo of quality furniture in south carolina, traveled to europe to visit customers. while overseas, paul checked his e-mail daily and showed his company's website to customers, explaining how the website will them place orders and receive merchandise more quickly. after visiting the last customer friday morning, paul was able to return to the corporate office in south carolina to meet with his board of directors that night. is the "shrinking" of time and space with air travel and electronic media.

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.

Juan's investment portfolio was valued at $125,640 at the beginning of the year. during the year, juan received $603 in interest income and $298 in dividend income. juan also sold shares of stock and realized $1,459 in capital gains. juan's portfolio is valued at $142,608 at the end of the year. all income and realized gains were reinvested. no funds were contributed or withdrawn during the year. what is the amount of income juan must declare this year for income tax purposes?