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
Alex_Xolod [135]
3 years ago
12

Sheffield Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs

$216,000; and fixed costs $70,800. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume.
Business
1 answer:
frosja888 [35]3 years ago
5 0

Answer:

1. the net income if selling price increased by 10% would be = $59,700

Net income increased by $31,500.

Explanation:

Given,

Sales = $315,000

Variable costs = $216,000

Fixed costs = $70,800

No. of units = 5,000

                                   Sheffield Company

             Income Statement (Contribution Margin Format)

Particulars                                                $

Sales                                                    315,000

Less: Variable expenses                  <u> (216,000)</u>

Contribution Margin                             99,000

Less: Fixed costs                         <u>        (70,800)</u>

Net Income                                          28,200

Since the selling price increased by 10% and no change in variable costs and volume, therefore, we can get -

<em>Sales = $315,000 x (1 + 0.10) = $346,500</em>

In this case, the net income will be as follows:

Sales                          = $346,500

<u>Less: Variable Costs =  (216,000)</u>

Contribution Margin  =   130,500

<u>Less: Fixed Costs      =   (70,800)</u>

Net Income                =   59,700

You might be interested in
Which of the following is not one of the three advantages of dealing with a financial intermediary?
larisa [96]
One of the disadvantages of dealing with a financial intermediary would be: <span> A financial intermediary shares risks.</span>
6 0
2 years ago
Read 2 more answers
20 POINTS!!
NemiM [27]

Answer:

4

Explanation:

4) go shopping for new clothes. you choose to get an hour of exercise. based on this what is the opportunity cost of your choice

5 0
3 years ago
Essman might overlook strategic risks, the business plan at hand can be a good plan and the Product mix may be one of the best.
WITCHER [35]

Risk retention is good for the company as the good has the better strategies planned about the product mix and if the things changed in the future the company is able to conquer the loss.

<h3>What is product mix?</h3>

Product mix is the total number of products sell by  the particular company, the products can be further divided into the categories and division. Many big companies have the different line products like the cosmetics, glasses, home materials and others.

Thus, Risk retention is good for the company as the good has the better strategies

For more details about Product mix, click here:

brainly.com/question/17463487

#SPJ1

6 0
1 year ago
. A poor credit score can result in:
myrzilka [38]

Answer:

- All of the above

Explanation:

This is the best answer for this question because a poor credit score can result in difficulty finding a job, renting an apartment, and obtaining credit in the future.  I didn't see anything about higher interest charges, but one can logically conclude that that would also be affected

Hope this helps(:

3 0
3 years ago
When the economy suffers a downturn and the incomes of many people decrease, vacationers are more likely to take car trips than
inysia [295]

Answer: Air travel is a normal good and vacation travel by car is an inferior good

Explanation: What is a normal good and what is an inferior good.

Normal goods are those goods for which the demand rises as consumer income rises. While inferior goods are goods whose demand increases when consumer income decreases.

This therefore means that the demand of inferior goods is inversely related to the income of the consumer.

From the question above, we can say that car trips are inferior goods while the air travel are normal goods.

3 0
3 years ago
Read 2 more answers
Other questions:
  • a company had no office supplies available at the beginning of the year. during the year, the company purchased $370 worth of of
    8·1 answer
  • Xanat is grief-stricken after the death of her mother. Consequently, her productivity at work is suffering. Humberto, her superv
    13·1 answer
  • In a planning context, A. open facts are preferred to closed facts. B. None of the choices are correct. C. new facts are preferr
    6·1 answer
  • At nick's bakery, the cost to make homemade chocolate cake is $3 per cake. as a result of selling three cakes, nick experiences
    9·1 answer
  • A mortgage can best be defined as?
    8·1 answer
  • Which one of the following is an example of systematic risk?
    8·1 answer
  • Ariel is saving money to purchase a new computer before she leaves for college in two years. She wants to open a special account
    9·1 answer
  • "Roller-Tell Inc., a major supplier of components to the automobile industry, has recently confronted a crisis as one of its man
    7·1 answer
  • After the presentation, you discover that you provided some inaccurate figures. in a few cases, you inadvertently overstated by
    14·2 answers
  • General Contracting was hired by the city of Rockyville to put in a new road through a mountain pass for $2 million. General Con
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!