Cotrone beverages makes energy drinks in three flavors: original, strawberry, and orange. the company is currently operating at 75 percent of capacity. worried about the company's performance, the company president is considering dropping the strawberry flavor. if strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. in addition, the company's total fixed costs would be reduced by 15 percent. segmented income statements appear as follows: product original strawberry orange sales $ 32,800 $ 42,500 $ 51,100 variable costs 22,960 38,250 40,880 contribution margin $ 9,840 $ 4,250 $ 10,220 fixed costs allocated to each product line 4,600 6,300 7,700 operating profit (loss) $ 5,240 $ (2,050 ) $ 2,520 required: a. prepare a differential cost schedule.

The uno company was formed on january 2, year 1, to sell a single product. over a 2-year period, uno’s acquisition costs have increased steadily. physical quantities held in inventory were equal to 3 months’ sales at december 31, year 1, and zero at december 31, year 2. assuming the periodic inventory system, the inventory cost method which reports the highest amount for each of the following is inventory december 31, year 1/ cost of sales year 2 a: lifo fifo b: lifo lifo c: fifo fifo d: fifo lifo

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

Suppose an economy has only two sectors: goods and services. each year, goods sells 80% of its outputs to services and keeps the rest, while services sells 62% of its output to goods and retains the rest. find equilibrium prices for the annual outputs of the goods and services sectors that make each sector's income match its expenditures.