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mixer [17]
3 years ago
12

TB MC Qu. 6-62 Gayne Corporation's contribution margin ratio is ... Gayne Corporation's contribution margin ratio is 18% and its

fixed monthly expenses are $51,000. If the company's sales for a month are $313,000, what is the best estimate of the company's net operating income
Business
1 answer:
lutik1710 [3]3 years ago
4 0

Answer:

$5,340

Explanation:

Gayne's corporation contribution margin ratio is 18%

= 18/100

= 0.18

The fixed monthly expenses is $51,000

The company sales for the month is $313,000

Therefore, the net operating income can be calculated as follows

= (Contribution margin ratio×sales)-fixed expenses

= (0.18× $313,000)- $51,000

= $56,340-$51,000

= $5,340

Hence the best estimate of the company's net operating income is $5,340

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Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $9,000, and $1
nika2105 [10]

Answer:

$21,435.74

Explanation:

Marko will pay as much as the discounted present value of the cash flow:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $5,000.00

time  1.00

rate  0.14000

\frac{5000}{(1 + 0.14)^{1} } = PV  

PV   4,385.9649

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $9,000.00

time  2.00

rate  0.14000

\frac{9000}{(1 + 0.14)^{2} } = PV  

PV   6,925.2078

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $15,000.00

time  3.00

rate  0.14000

\frac{15000}{(1 + 0.14)^{3} } = PV  

PV   10,124.5727

We add them together and get the total price for ABC Co

\left[\begin{array}{ccc}#&Cashflow&Discounted\\&&\\1&5000&4385.96\\2&9000&6925.21\\3&15000&10124.57\\&total&21435.74\\\end{array}\right]

8 0
4 years ago
Discuss the principles of professionalism.​
BaLLatris [955]

Answer:

Maintain confidentiality in professional relationships. ... Fulfill commitments in a reliable, responsive and efficient manner. Be fully accountable for actions, use of resources and financial dealings.

4 0
3 years ago
A summary of the time tickets for the current month follows:
tester [92]

Answer and Explanation:

The journal entry to record the factory labor cost is shown below:

Work in progress  ($2,060 + $1,710 + $3,130 + $3,520 + $2,150 + $1,410 + $9,540) $23,520

Factory Overhead $10,980

         To wages payable  $34,500

(to record the factory labor cost)

Here work in process and factory overhead is debited as it increased the assets and expenses and credited the wages payable as it also increased the liabilities  

8 0
3 years ago
If I swallow 3 tons of white liquid and ratika swallows only 7 kilograms who swallows more?
natta225 [31]

Answer:

3 Tons is more, since 1000 Kilos =  1 Ton.

3 0
3 years ago
Read 2 more answers
For tax reasons, your client wishes to purchase an annuity that pays $80,000 each year for 6 years, with the first payment in on
tatyana61 [14]

Answer:

$369,830.37

Explanation:

Present value can be calculated using a financial calculator

Cash flow from year  1 to 6 = 80,000

i = 8%

pv = $369,830.37

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
3 years ago
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