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Alenkinab [10]
3 years ago
15

During its most recent fiscal year, Raphael Enterprises sold 370,000 electric screwdrivers at a price of $20.10 each. Fixed cost

s amounted to $1,369,000 and pretax income was $1,739,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question
Business
1 answer:
sergij07 [2.7K]3 years ago
4 0

Answer:

$4,329,000

Explanation:

We know that

Pre-tax income = Sales - variable cost - fixed cost

where,

Sales = Number of units sold × selling price per unit

        = 370,000 units × $20.10

        = $7,437,000

And, the other items values remain the same

Now put these values to the above formula

So, the value would be equal to

$1,739,000 = $7,437,000 - variable cost - $1,369,000

So, the variable cost = $4,329,000

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Compute and interpret the contribution margin ratio using the following data:
ziro4ka [17]

Answer:

contribution margin ratio= 0.37

Explanation:

Giving the following information:

Sales= $4,700

Total variable cost= $2,961

To calculate the contribution margin ratio, we need to use the following formula:

contribution margin ratio= (sales - total variable cost) / sales

contribution margin ratio= (4,700 - 2,961) / 4,700

contribution margin ratio= 0.37

5 0
2 years ago
Cool Logos buys​ logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 003 c
Scrat [10]

Answer:

<u>Cost of Goods Sold Budget</u>

                                                  October             November      

Cost of Goods Sold                $1,568,000          $1,664,600    

<u>Inventory Budget</u>

                                                  October              November

Total                                         $752,920            $772,800

<u>Purchase Budget</u>

                                                 October                November

Budgeted Purchases           $2,259,320            $2,397,880

Explanation:

<u>Cost of Goods Sold Budget</u>

Gross Profit Margin = 30% therefore Markup is 70%

                                                  October             November       December  

Sales                                       $2,240,000         $2,378,000     $2,520,000

Cost of Goods Sold (70%)     $1,568,000          $1,664,600      $1,764, 000

<u>Inventory Budget</u>

                                                  October                       November

Base Amount                          $420,000                       $420,000

Based on Sales (20%)            $332,920                        $352,800

Total                                         $752,920                       $772,800

<u>Purchase Budget</u>

                                                               October                       November

Budgeted Sales                                    $2,240,000                $2,378,000

Add Budgeted Closing Inventory           $752,920                   $772,800

Total Purchases Needed                     $2,992,920                 $3,150,800

Less Budgeted Opening Inventory       ($733,600)                 ($752,920)

Budgeted Purchases                            $2,259,320                $2,397,880

September Closing Stock is October`s Opening Stock

Therefore September Closing Stock = $420,000 + $1,568,000 × 20%

                                                             = $733,600

6 0
3 years ago
The Gap, Inc. has targeted teenagers and young adults in need of casual clothes, and through its GapKids stores, the parents or
Nataliya [291]

Answer:

The correct option is A, market segmentation

Explanation:

Market segmentation is the process of dividing customer base into distinct groups based on age,income,level of education,personality,perception and so on.

The purpose of segmenting the markets  is for the organization to satisfy the needs of these different groups based on their unique characteristics and to able to sell to them goods that  best match their status.

The scenario here is that Gap Inc,has successfully been able to discover the right set of people that its casuals best match.

7 0
3 years ago
During the second quarter of the year, Wallace Enterprises received $30,000 from customers in exchange for providing electronic
SSSSS [86.1K]

Answer:

On an income statement, the company would declare c. $21,000 expenses

Explanation:

Wallace Enterprises received $30,000 from customers in exchange for providing electronic components. Income from the exchange was $30,000

During the second quarter of the year, total expense = supplies expense + interest expenses + wages expense = $5,000 + $1,000 + $15,000 = $21,000

Income from the exchange - total expense = $30,000 - $21,000 = $9,000>0

The company recognizes gain $9,000.

On an income statement, the company would declare $21,000 expenses

5 0
3 years ago
The model of competitive markets relies on these three core assumptions:
Vesnalui [34]

Answer:

The three scenarios describe a competitive market.

Explanation:

1) In the competitive market buyers and sellers are price takers, this means that there are many producers and consumers and none of them are able to intervene in price and market. Price is given, ie price is determined by interaction in the market. 2) The products are identical. That is, no company will make a profit due to differentiated products. In perfect competition, companies produce identical products, and the consumer is indifferent to the product characteristics of each company. 3) There is free entry and exit of companies and factors of production, ie there is no cost to enter and exit any sector. This means that factors can migrate from one sector to another without incurring costs, meaning there are no barriers to entry and exit from any sector.

Thus, from items 1 and 2, consumers and buyers are price takers, that is, they cannot influence the price determined by the market. Item 3 is about achieving zero profit or normal long-term profit. This is because the free entry and exit of companies avoids extraordinary profits by encouraging companies to migrate to sectors that earn higher profits in the short term. Thus, in perfect competition, compa

7 0
3 years ago
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