1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
elixir [45]
2 years ago
9

Carver Packing Company reports total contribution margin of $95,400 and pretax net income of $21,200 for the current month. In t

he next month, the company expects sales volume to increase by 8%. The degree of operating leverage and the expected percent change in income, respectively, are:
Business
1 answer:
Nuetrik [128]2 years ago
4 0

Answer:

Degree of operating leverage= 4.5

Expected percentage change in income = 36%

Explanation:

To find the degree of operating leverage we use the formula:

Degree of operating leverage= contributing margin/ net income

= 95400 / 21200 =4.5

For percentage change in income we use:

Expected % change in income = % increase in sale * degree of operating leverage

= 8% * 4.5 =

= 36%

You might be interested in
Zoey is a salesperson who is meeting a prospect after a successful cold call. zoey has collected most of the basic information a
gregori [183]
<span>by questioning the prospect during sales dialogues.</span>
5 0
2 years ago
ProForm acquired 70 percent of ClipRite on June 30, 2017, for $770,000 in cash. Based on ClipRite's acquisition-date fair value,
11Alexandr11 [23.1K]

Answer and Explanation:

The computation is shown below:

The amount of consolidated sales balance is  

Proform Sales 820,000

Cliprite Sales 640,000

Less: Intra-entity Sales -270,000

Consolidated Sales Balance $1,190,000

The amount of consolidated cost of goods sold balance is

Proform's Cost of Goods Sold Book Value 545,000

Cliprite's Cost of Goods Sold Book Value 410,000

Less: Intra-Entity Transfers -270,000

Adjusted Gross Profit Deferred in 2017 [(110,000 - 71,000) × 30%] -11,700

Deferral of 2018 Intra-Entity Gross Profit [(270,000 - 210,000) × 10%] 6,000

Consolidated Cost of Goods Sold Balance $679,300

The amount of consolidated operating expenses balance is  

Proform's Operating Expenses Book Value 120,000

Cliprite's Operating Expenses Book Value 110,000

Amortization of Intangible Assets 12,000

Consolidated Operating Expenses Balance $242,000

The amount of consolidated dividends balance is $0 as there is an elimination in consolidation.

The amount of net income attributed is  

Cliprite's Reported Income for 2018 120,000

Less: Amortization of Intangible Assets -12,000

Cliprite's Adjusted Net Income 108,000

Net Income Attributable to Non Controlling Interest (108,000 × 30%) $32,400

The amount of consolidated inventory balance is  

Proform's Operating Expenses Book Value 310,000

Cliprite's Operating Expenses Book Value 720,000

Intra-Entity Gross Profit [(270,000 - 210,000) ×  10%] -6,000

Consolidated Inventory Balance $1,024,000

The value of noncontrolling interest in subsidiary is  

30% of Opening Book Value [(870,000 + 300,000) × 30%) 351,000

Excess January 1 Intangible Allocation [(450,000 - 12,000 ÷ 2) × 30%)] 133,200

Net Income Attributable to Noncontrolling Interest 32,400

Dividends (70,000 ×  30%) -21,000

Non Controlling Interest, 12/31/18 $495,600

6 0
2 years ago
Suppose during a year an economy produces $10 trillion of consumer goods, $4 trillion of investment goods, $6 trillion in govern
Svetlanka [38]

Answer:

The correct answer is $19 trillion

Explanation:

Gross Domestic Product (GDP) is the total market or monetary value of all the goods and services produced by a country within its borders over a given period of time. It is used as a measure of a country's economic health, due to its broad coverage.

The formula for calculating GDP is: GD P  =  C  +  I  +  G  +  ( X  −  M )

where :

C = private consumption (consumer goods)

I = gross investments (investment goods)

G = government investments or government spending (govt. services)

X = export

M = import

Therefore:

GDP (in trillion) = 10 + 4 + 6 + (4 - 6) = 10 + 10 - 1 = $19 trillion dollars.

Please note that there is the nominal GDP and real GDP.

Nominal GDP is the total value of all the final goods and services a country produces within a year, while real GDP is the value of the goods and services produced within a year, putting inflation effects into account.

5 0
3 years ago
Newhard Company assigns overhead cost to jobs on the basis of 115% of direct labor cost. The job cost sheet for Job 313 includes
Nina [5.8K]

Answer:a.Total manufacturing costs for Job 313 =$52,500

Unit Product Cost for Job 313=$30

Explanation:

Total manufacturing costs=Direct materials+Direct labor costs+Overhead costs

But Overhead cost =115% of direct labor cost

= 115% x $10,600

=$12,190

Total manufacturing costs =$29,710 + $10,600+$12,190

=$52,500

Unit Product Cost=Total Manufacturing costs/ Total Number of Units Produced =$52,500 /1,750 units

=$30

8 0
2 years ago
Consider a profit-maximizing firm in a competitive industry. Under which of the following situations would the firm choose to pr
Mandarinka [93]

Answer:

Option (a) and (b) are considered or correct.

Explanation:

Under the following two conditions, a firm in a perfectly competitive market produces at a point where the marginal revenue is equal to the marginal cost:

(i) Minimum AVC < Price < minimum ATC : Yes

In this case, a firm may suffer a loss but it will be able to cover its minimum average variable cost. Hence, this firm continue operating in this market and if he shut down its operation then he may suffer a larger loss. Therefore, it chooses to continue operating under this market conditions.

(ii) Price > minimum ATC : Yes

In this case, the price received by the seller is greater than the minimum average total cost. Therefore, the firm is able to cover all of its cost of production and earning an economic profit. Hence, it obviously chooses to continue its operation.

The third option is not considered here because in this case, the firm won't be able to cover its variable cost.

3 0
3 years ago
Other questions:
  • BlastTel Inc. has a return on invested capital of , whereas, SaneTel Corp. has a return on invested capital of . Your inference
    9·1 answer
  • Pedro decides to buy a shawl for his grandmother instead of buying a video game for himself. What conclusion can be drawn about
    13·2 answers
  • At which quantity does this firm produce the greatest marginal revenue? Quantity (Q) Total Revenue (TR) Marginal Revenue (MR) To
    6·1 answer
  • Randy Ice starts the month with a balance on his credit card of $1000. On the 10th day of the month, he purchases $200 in clothe
    11·1 answer
  • You have just started a new business. You need to have three to four workstations available for your employees who simply need t
    7·1 answer
  • Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $300 and has a unit cont
    11·1 answer
  • A business charging too little for its product runs the risk of
    11·1 answer
  • Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? Select two answe
    7·2 answers
  • The Extreme Reaches Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $3.00, $5.00, $7.50, an
    9·1 answer
  • The market price in a perfectly competitive market is $11, and 1,250 units are bought and sold. Assume the market becomes monopo
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!