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alexgriva [62]
3 years ago
8

During its most recent fiscal year, Simon Enterprises sold 200,000 electric screwdrivers at a price of $15 each. Fixed costs amo

unted to $400,000 and pretax income was $600,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?
Business
2 answers:
Grace [21]3 years ago
8 0

Answer:

Sales-VC=Contribution

Contribution-FC=600000

Contribution=1000000

Sales-VC=1000000

VC=200000*15-1000000

VC=2000000

d. $2,000,000.

Explanation:

Vikentia [17]3 years ago
6 0

Answer:

$2,000,000

Explanation:

We know that,

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

where,

Sales = Number of units sold × selling price per unit

         = 200,000 units × $15

         = $3,000,000

And, the other items values remain the same

Now put these values to the above formula

So, the value would be equal to

$600,000 = $3,000,000 - variable cost - $400,000

So, the variable cost = $2,000,000

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Metlock Company took a physical inventory on December 31 and determined that goods costing $185,000 were on hand. Not included i
Paha777 [63]

Answer:

$229,890

Explanation:

The formula to compute the ending inventory is shown below:

= Cost of inventory + goods purchased from f.o.b. shipping point + goods sold at f.o.b. destination

= $185,000 + $24,080 + $20,810

= $229,890

We added the goods purchased and goods sold to the cost of inventory so that the accurate value of the ending inventory can come.

6 0
3 years ago
Mcdougald Corporation is a service company that measures its output by the number of customers served. The company has provided
ANEK [815]

Answer:

The spending variance for "Employee salaries and wages" for March would have been closest to $1,200F .

Explanation:

Customers served (q)

Employee salaries and wages ($58,400 + $1,000q)

The spending variance for "Employee salaries and wages" for March would have been closest to

         Actual Results      Flexible Budget     Revenue and Spending Variances

(q)          26                 26      

($58,400 + $1,000q) $ 83,200 $ 84,400    $1,200F

6 0
3 years ago
Jax Company uses the acquisition method for accounting for its investment in Saxton Company. Jax sells some of its shares to Sax
Elena-2011 [213]

Answer:

A

Explanation:

In this question, we are to evaluate the validity of the options. We were told he used the acquisition method. When do we use the acquisition method?

The acquisition method is used when a company is taken in by another company by using a merger, acquisition or through a consolidation.

Now, out of all the options presented, we can see that the selling price less the acquisition value is recorded as a realized gain or loss.

3 0
3 years ago
Read 2 more answers
During its first year of operations, mack's plumbing supply co. had sales of $630,000, wrote off $10,100 of accounts as uncollec
Reil [10]
<span>The answer is 516,250 by first calculating expenses (6,500,000-40,000-expenses=590,000), net income = revenue-expenses.</span>
3 0
3 years ago
What document is a summary of the money a company brought in (revenue) and what it paid out (expenses)?
alexgriva [62]

The income statement shows a detailed picture of the transactions of all revenue and expenses. The income summary account then summarizes these figures in order to produce the statement of retained earnings. Both the income statement and income summary show the revenue and expenses of a company.

4 0
3 years ago
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