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DerKrebs [107]
3 years ago
5

The following budget information is available for the HD Sales Company (HDC) for January: Sales $ 320,000 Freight out $ .25 per

unit sold Depreciation on Admin. Equipment $ 10,000 Sales & Admin. Salaries $ 40,000 +2% of sales Advertising $ 12,000 Depreciation on Manuf. Equip. $ 15,000 Lease on Sales Building $ 45,000 Miscellaneous Selling Expenses $ 5,000 All operating expenses are paid in cash in the month incurred.If HDC expects to sell 20,000 units of inventory, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement?
Business
1 answer:
Mamont248 [21]3 years ago
5 0

Answer:

The total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400

Explanation:

Computation of total budgeted selling and administrative expenses in the January pro forma income statement is shown below:

= Freight out + Sales & Admin Salaries + Advertising + Lease on Sales building + Miscellaneous selling expenses

where,

Freight out = $0.25 × 20,000 units = $5,000

Sales & Admin Salaries = 40,000 + 2% of $320,000 = $46,400

So,

The total budgeted selling and administrative expenses is

= $5,000 + $46,400 + $12,000 + $45,000 + $5,000

= $113,400

Since depreciation part is not be considered because it is a non cash expense so we don't include the depreciation cost in computation part.

Hence, the total budgeted selling and administrative expenses would be what amount on the January pro forma income statement is $113,400

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Match the business strategies with their characteristics.
zavuch27 [327]

Answer:

The correct answer is : A-Y, B-Z, C-X

Explanation:

Niche is a business strategy in which a specific buyer group or regional market is focused.

Imitation is the strategy of adopting the best practices of another company usually a firm which was first in the market. It is a low-cost strategy.

High-speed strategy concentrates on speed. It is based on the belief that time is money.

3 0
3 years ago
Rank the following types of businesses in order of risk to you, with the highest being number 1: partnership, limited partnershi
kompoz [17]

Answer:

  1. Sole Proprietorship
  2. Partnership
  3. Limited Partnership
  4. Limited Liability Company      

Explanation:

Sole Proprietorship is the type of business in which the liability is not limited. Due to this issue, the owner is solely responsible to pay off the debts of company from his personal owned assets if the business goes bankrupt.

Partnership is just like sole proprietorship but here the partners are the only responsible persons to payoff the debt of the company because the liability is limitless. The burden of the company debts is equally shared among the partners.

Limited Partnership is less risky because the liability is limited and only the amount invested in the business is subjected to the payment of borrowings from the lenders. The limited partner is responsible for his actions which means if his misdeed resulted in fine then it would be paid from his share first and then the other partners are equally liable to for compensation if their is still any amount left.

In the case of Limited liability company, the liability is limited and the burden of the payment of the liability falls on the company. So the investor is not subjected to pay the debts of the company because the limited liability company is a separate entity and is solely liable to pay for its debts.

8 0
3 years ago
Astro Co. sold 20,500 units of its only product and incurred a $67,750 loss (ignoring taxes) for the current year as shown here.
maksim [4K]

Answer:

Break even point in dollar sales = $1,050,000

Explanation:

Break Even Point in dollar sales = Fixed Cost/ Contribution margin percentage

Contribution margin percentage = (Contribution margin/ Sales) X 100

Here we have for the year 2017

Contribution margin = $194,750

Sales = $779,000

Contribution margin percentage = ($194,750/$779,000) X 100 = 25%

Break even point in dollar sales = Fixed Cost $262,500/25%

= $1,050,000

3 0
3 years ago
It is well-known that retaining an existing customer is far less expensive than acquiring a new one, so you suggest that the own
leva [86]

Answer:

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Internal data can be regarded as information that is been generated from within the business these could contains some areas like operations as well as maintenanc and personnel.

External data on other hands are attributed to the market, as well as from customers and from the firms competitors, it could be gotten from survey. All for increasing profitability.

4 0
3 years ago
A multimillion-dollar u.s. project to construct a suspension bridge is in progress. true structures inc. in canada shares both p
umka21 [38]

Answer: Joint Venture

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In a Joint venture the corporations who come together to form a joint venture retain their distinct entities.


7 0
3 years ago
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