# write a response that describes how knowledge of the accounting equation and financial statements discussed in week 1 might be used by the Medical office Manager during normal business activities. Indicate in your answer why you believe this to be so.

Answer: The knowledge on basic principles of accounting may be useful for a Medical officer Manager because it allows him to better understand the flow of the business from the transaction to people handling skills during normal business activities. These make it easier for him to get acquainted with what is to be dealt with during normal business talks.

## Related Questions

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,500 units) \$ 180,000 Variable expenses 81,000 Contribution margin 99,000 Fixed expenses 45,000 Net operating income \$ 54,000 If the company sells 4,600 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)

\$101,200

Explanation:

First, we need to calculate the total contribution margin per unit

Contribution margin per unit = 99,000 ÷ 4,500

Contribution margin = \$22 per unit

Then, we will multiply with the units sold to get the budgeted contribution margin

= Units sold × Contribution margin per unit

= 4,600 × \$22

= \$101,200

Therefore, its total contribution margin should be closest to \$101,200

Dennis Kozlowski, John Thain, and Raj Rajaratnam are former CEOs mentioned in the text that have been involved in corporate governance problems to one degree or another. What did Dennis Kozlowski do that was considered inappropriate behavior

Dennis Kozlowski was found guilty of grand larceny, falsifying business records, securities fraud, and conspiracy.  He later admitted to have been driven by excessive greed as he overcompensated himself when he served as CEO of Tyco.

Explanation:

Dennis Kozlowski during his crime trial was found to have received "\$81 million in unauthorized bonuses, the purchase of art for \$14.725 million, and the payment by Tyco of a \$20 million investment banking fee to Frank Walsh, a former Tyco director," according to wikipedia.com.

Brodrick Company expects to produce 21,000 units for the year ending December 31. A flexible budget for 21,000 units of production reflects sales of \$504,000; variable costs of \$63,000; and fixed costs of \$141,000. Assume that actual sales for the year are \$595,600 (26,900 units), actual variable costs for the year are \$114,000, and actual fixed costs for the year are \$133,000. Prepare a flexible budget performance report for the year.

Brodrick Company

Flexible Budget Performance Report for the year ended December 31

Flexible        Actual          Variance

Budget        Budget

Sales unit                 21,000           26,900          5,900 units F

Sales revenue    \$645,600      \$595,600     \$50,000 U

Variable costs         80,700          114,000        33,300 U

Fixed costs             141,000         133,000          8,000 F

Total costs          \$221,700      \$247,000      \$25,300 U

Profit                  \$423,900      \$348,600      \$75,300 U

Explanation:

a) Data and Calculations:

Flexible Budget for 21,000 units

Sales revenue = \$504,000

Variable cost = \$63,000

Fixed costs = \$141,000

Flexing the budget with 26,900 units:

Sales revenue = \$645,600 (\$504,000/21,000 * 26,900)

Variable costs = \$80,700 (\$63,000/21,000 * 26,900)

The Victor Company sells two products. The following information is provided: Product A Product BUnit selling price\$100 \$150 Unit variable cost\$30 \$70 Number of units produced and sold 20,000 60,000 What is the weighted average contribution margin per unit?A. \$75.00
B. \$80.00
C. \$77.50
D. \$72.50

Weighted average contribution margin= \$77.5

Explanation:

Giving the following information:

Product A Product B

Unit selling price \$100 \$150

Unit variable cost \$30 \$70

Number of units produced and sold 20,000 60,000

First, we need to determine the sales proportion:

Product A= 20,000/80,000= 0.25

Product B= 0.75

To calculate the weighted-average contribution margin, we need to use the following formula:

Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)

Weighted average contribution margin= (0.25*100 + 0.75*150) - (0.25*30 + 0.75*70)

Weighted average contribution margin= 137.5 - 60

Weighted average contribution margin= \$77.5

Jamison Company had sales revenue and operating expenses of \$5,000,000 and \$4,200,000, respectively, for the year just ended. If invested capital amounted to \$6,000,000, the firm's ROI was:_________ A. 13.33%.
B. 83.33%.
C. 120.00%.
D. 750.00%.

A,. 13.33%.

Explanation:

Return on Investment (ROI) which gives the efficiency of a particular investment

We were given invested capital amounted as \$6,000,000, and operating expenses as \$5,000,000

We can calculate net income by substracing equal sales revenue from operating expenses

net income can be calculated as = (\$5000000-\$420000)

= \$800000

ROI can be calculated as

net income/Capital investment

\$800000/\$6000000

=. 13.33%.

Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent \$96,000 to produce 1,375 units that can be sold now for \$89,500 to another manufacturer. Alternatively, Holmes can process the units further at an incremental cost of \$290 per unit. If Holmes processes further, the units can be sold for \$440 each. Should Holmes sell the product now or process it further

Yes

Explanation:

The computation is shown below:

Particulars         Sales As Is   Process further     Incremental Accounting

Sales            \$89,500       \$605,000               \$515,500

(1,375 units × \$440)

Less: