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iris [78.8K]
4 years ago
12

An operation operates with a variable cost percentage of 72%. The owner wants to increase sales revenue by an amount necessary t

o provide for an additional operating income of $800 a month, or $9,600 a year. What is the additional increase in sales revenue required
Business
1 answer:
padilas [110]4 years ago
4 0

Answer:

The answer is $2,857.14    

Explanation:

Let us assume Sales be $500 per month  

                                                 Monthly    

Sales                                    $500    

Less: Variable Cost(72%)    $360    

Contribution(will be 28%)    $140    

Less: Fixed Cost(Assume)      0    

Operating Income                     $140    

If there should be an increase of $800 per month in the operating Income

Revised Operating Income $140 + $800 = $940  

Therefore Contribution is equal to $ 940  

If Contribution is $940 equal to 28%, then Sales be 100%  

$940 ÷ 28%    

$3,357.14    

Therefore additional increase in Sales revenue required per month

$3,357.14 - $500    

$2,857.14    

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​(Cost of​ debt) Belton Distribution Company is issuing a ​$1 comma 000 par value bond that pays 8.9 percent annual interest and
ioda

Answer:

After tax cost of debt is 7.69%

Explanation:

The after tax cost of debt can be computed by first of all determining the pre-tax cost of debt .

The pre-tax of debt is the yield to maturity computed using the rate formula in excel as follows:

=rate(nper,pmt.-pv,fv)

nper is the number of times the bond would pay coupon interest over the entire bond life ,which is 15 years multiplied by 2=30

pmt is the semi-annual interest which is $1000*8.9%/2=$44.5

pv is the current price of the bond at $962

fv is the face value of the bond at $1000

=rate(30,44.5,-962,1000)=4.69%

this is the semi-annul yield ,annual yield is 9.38%

The 9.38% is the pretax

after tax cost of debt=9.38%*(1-0.18)=7.69%

0.18 is the 18% tax rate

5 0
4 years ago
The Assembly Department started the month with 83,000 units in its beginning work in process inventory. An additional 334,000 un
Zolol [24]

Answer:

383,000

Explanation:

Calculation to determine How many units were transferred to the next processing department during the month

Work in process, beginning 83,000

Add Units started into production during the month 334,000

Less Work in process, ending (34,000)

Units completed and transferred out during the month 383,000

(+83,000+334,000-34,000)

Therefore How many units were transferred to the next processing department during the month is 383,000

5 0
3 years ago
What is the key difference between command and market economies?
VladimirAG [237]

Answer:

Key Takeaways

Explanation:

7 0
3 years ago
Which of the following best explains why online retail companies have an
tekilochka [14]

Answer is D.

Explanation: They have a larger number of potential customers because people anywhere can buy from them.

5 0
4 years ago
the benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is call
Snezhnost [94]

The benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is called externality.

What does the term externality mean?

Externalities are situations when the production or consumption of products and services has an impact on other people that results in costs or advantages that are not accounted for in the pricing charged for the goods and services being offered.

What impact do externalities have on the economy?

When people, households, and businesses fail to internalise the indirect costs or advantages of their economic interactions, externalities pose serious issues for economic policy. Inefficient market outcomes are the result of the resulting wedges between social and private costs or profits.

To know more about externality, click here- brainly.com/question/477170

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8 0
1 year ago
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