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3 years ago

What is the formula used to calculate total profit?

1 answer:

8 0

Calculate the total revenue. Add up the cost of all goods. Subtract the cost of goods from the total revenue. Hope this helped.

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Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2015.

Slav-nsk [51]

Answer:

CHEESE FACTORY INCORPORATED

Income Statement

For the Year Ended August 31, 2015

Revenues:

Sales revenue $1,738,000

Total revenue $1,738,000

Expenses

Salaries and wages expense $975,000

Office expenses $115,000

Utilities expense $550,000

Total expenses $1,640,000

Net income $98,000

CHEESE FACTORY INCORPORATED

Statement of Retained Earnings

For the Year Ended August 31, 2015

Retained earnings, beginning $414,000

Add: Net income $98,000

Less: Dividends $14,000

Retained earnings, ending $498,000

6 0

3 years ago

Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $410,000 and has a present va

densk [106]

Answer:

Profitability index for Project 1 is 3.17

Profitability index for Project 2 is 1.75

The company should prefer project 1 based on the profitability index.

Explanation:

We calculate the profitability index by dividing the present value of future cash flows by the initial investment. So the profitability index for project 1 will be its future cash flows divided by the initial investment.

1,300,000/410,000=3

Profitability index for Project 1 is 3.17

We will do the same to calculate the profitability index for Project 2

7,000,000/4,000,000=1.75

Profitability index for Project 2 is 1.75

3 0

4 years ago

The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemb

vovangra [49]

Answer:

EOQ = 200 units

Explanation:

We can easily calculate the Economic order quantity by putting values EOQ formula. All you need is the data for calculation.

DATA

Annual demand = 8,000

Ordering cost = $50

Holding cost = $20

EOQ =?

Formula

EOQ = $\sqrt{\frac{2CoD}{Ch} }$

Where

Co = Ordering cost

D = Demand

Ch = Holding cost

Solution

EOQ = $\sqrt{\frac{{2(50)(8000)} }{20}}$

EOQ = $\sqrt{\frac{800000}{20} }$

EOQ = 200 units

3 0

3 years ago

The following information relates to Carried Away Hot Air Balloons, Inc.: Advertising Costs $ 15 comma 800 Sales Salary 13 comm

Stella [2.4K]

Answer:

$21,200

Explanation:

The computation of manufacturing overhead is shown below:-

Total manufacturing overhead = Indirect Labor + Indirect Materials + Factory Repair and Maintenance + Manufacturing Equipment Depreciation

= $11,100 + $8,300 + $800 + $1,000

= $21,200

Therefore for computing the total manufacturing overhead we simply added all relevant cost Indirect Labor, Indirect Materials, Factory Repair, and Maintenance, and Manufacturing Equipment Depreciation. The rest all cost is not relevant for total manufacturing cost.

6 0

3 years ago

Venture capital firms attempt to overcome the principal-agent problem by A. holding large equity stakes in the firms they invest

nordsb [41]

Answer:

A. holding large equity stakes in the firms they invest in

Explanation:

The venture capital is a form of a private equity funding and is at the startups and the early stage and seen in emerging companies and has been deemed to have huge growth potential.

Are seen in the exchange of the equity or the ownership stake and is based on the innovative technology and thus they invent a larger holding in the equity stakes of the firms they invest in.

3 0

3 years ago