Answer:
sales is $2,500,000
Explanation:
The target sales for the company to achieve a net income of $450,000 in the current year equals the net income plus variable cost plus the fixed costs.
To understand this better,let us use the net income formula:
net income=sales-variable costs-fixed costs
by changing the subject of the formula,we the formula for sales:
sales=net income+variable costs+fixed costs
variable costs=sales*70%=0.7 sales
sales=$450,000+$300,000+0.7 sales
sales-0.7 sales=$750,000
0.3 sales=$750,000
sales=$750,000/0.3=$2,500,000
Based on the production process time, the days finished goods are kept on hand and others, the operating cycle would be 50 days.
<h3>What is the operating cycle?
</h3>
The operating cycle can be found as:
= Average production time + Finished goods holding period + Accounts receivable outstanding period - Days of credit
Solving gives:
= 40 + 15 + 35 - 40
= 50 days
Find out more on operating cycle at brainly.com/question/26482515.
Answer: Increase by $250
Explanation: As per the general rule of economics when there is an increase in income, that increase will eventually lead to increase in expenditure.
As, there is an increase in investment in the given case so it will result in increase in income for the economy.
We can compute it as :-
= $250
Therefore, the expenditure would increase by $250
Answer:
Which of these transactions would produce $10,000 of revenue in December?
BOC collected a $10,000 deposit in December for goods it will ship in January.
Explanation:
From the above analogy, it is only money collected/deposited in December for goods that reflects for revenue generated by BOC in the above mentioned month
