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
Naddik [55]
2 years ago
15

During its first year of operation Salon Manufacturing Company sold 1,200 units of inventory. Salon incurred variable product co

st of $6.50 per unit and $2,500 of fixed manufacturing overhead costs. The sales price of the products was $10.00 per unit. Salon uses absorption costing. Based on this information Salon will report net income of (Do not round intermediate calculations.)
Business
1 answer:
kotegsom [21]2 years ago
5 0

Answer:

Net Income under absorption costing =$1,700

Explanation:

<em>Absorption costing is a method of costing where production units and inventories are value at the full cost per unit. Here, fixed overheads are charged to  all units produced using an overhead absorption rate</em>

<em>The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads</em>

Overhead absorption rate = Overhead for the period/

Net Income = (1200 × $10) - (1200× $6.50) - 2,500

                  = $1,700

Net Income under absorption costing =$1,700

You might be interested in
Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)
Mila [183]

Answer: Cost of Goods sold

Explanation:

Common size analysis refers to making all entries in the income statement, a percentage of sales for that year.

Current Year                                                      Prior Year

Sales                                      100%                           100%

Cost of Goods sold               75.7%                          46.5%

Gross Profit                            24.3%                          53.5%

Operating expenses             17.3%                             35%

Net Income                              7.0%                            18.5%

<em>Looking at the percentages above, one can see that the COGS increased the most from the previous year by going from 46.5% to 75.7% representing an increase of 29.2%.</em>

<em>This had the most impact on Net income as it substantially reduced Gross profit. </em>

8 0
3 years ago
A production function: shows the output that is most highly valued by consumers. shows the most desired production method for a
BigorU [14]

Answer:

Shows the output that is produced using different combinations of inputs combined with existing technology

Explanation:

The production function is an <u>expression that links the different amount of inptuts used in the production process and the final output obtained with each combination of inputs, with a given tehcnology.</u>

As an example, if a economy produces only popcorn, a production function would be an expression that shows hou much popcorn that economy can produce with different combinations of corn and sugar, with a given technology.

4 0
3 years ago
A company had net income of $200,000 and paid dividends to common stockholders of $50,000 in 2022. The weighted average number o
likoan [24]

Answer:

25 percent.

Explanation:

Given that,

Net Income =$200,000

Paid dividends to common stockholders = $50,000

Weighted average number of shares outstanding in 2022 = 2,000 shares

Selling price of common stock = $80 per share

Dividend pay-out ratio:

= (Dividend paid to Common Stockholders ÷ Net Income) × 100

= ($50,000 ÷ $200,000) × 100

= 0.25 × 100

= 25%

Therefore, the company’s payout ratio for 2022 is 25 percent.

3 0
3 years ago
when setting up a product/service item in quick books which box do I check to assign a preferred vendor
sasho [114]
To create service items in QuickBooks Desktop, click the “Item” button in the lower-left corner of the list window. Then select the “New” command from the pop-up menu. In the “New Item” window, select “Service” from the “Type” drop-down. Enter a name for the service into the “Item Name/Number” box.
6 0
2 years ago
What are the constraints of business legislation?
Reika [66]

Answer:

A business may be constrained by a variety of licensure and other regulatory requirements, based on the industry and activities the business wants to pursue. For example, a lawyer must obtain a legal license in a particular state before he can open a practice in that state.

6 0
2 years ago
Other questions:
  • What is the similarity between the separation of powers, the system of checks and balances, and federalism?
    5·1 answer
  • What is a risk management plan?
    10·1 answer
  • An externality is
    14·1 answer
  • One way to demostarte assertiveness while interacting with a customer is to
    15·1 answer
  • On april 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for april legal services was made by the
    7·1 answer
  • The company cost of capital, when the firm has both debt and equity financing, is called the:
    11·1 answer
  • Exercise 9-16
    11·1 answer
  • Which concept deals with giving employees the power to make commitments and use resources to accomplish the assigned tasks
    7·1 answer
  • 4) (Economies of Scale) Suppose a firm has chosen its quantity so that its marginal cost is equal to the market price, and is ma
    11·1 answer
  • An increase in the expected inflation rate, other things remaining the same?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!