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
Andrews [41]
3 years ago
5

Members of the board of directors of have received the following operating income data for the year just​ ended:

Business
1 answer:
Rzqust [24]3 years ago
3 0

Answer:

a)                           with industrial          without industrial          differential

                             systems                    systems                         amount

sales revenue      640,000                   330,000                        (310,000)

variable COGS     (81,000)                    (48,000)                         33,000

<u>fixed COGS          (298,000)                 (216,000)                       82,000   </u>

gross profit           261,000                    66,000                         (195,000)

variable S&A        (140,000)                   (72,000)                        68,000

<u>fixed S&A             (71,000)                      (56,000)                       15,000   </u>

operating             50,000                      (62,000)                       (112,000)

income

b) contribution margin income statements:

with industrial systems

Sales revenue                         $640,000

- Variable COGS                      ($81,000)

- Variable S&A                        <u>($140,000)</u>

Contribution margin                $419,000

- Fixed COGS                        ($298,000)

- Fixed S&A                              <u>($71,000)</u>

Operating income                    $50,000

without industrial systems

Sales revenue                         $330,000

- Variable COGS                      ($48,000)

- Variable S&A                         <u>($72,000)</u>

Contribution margin                $210,000

- Fixed COGS                         ($216,000)

- Fixed S&A                             <u>($56,000)</u>

Operating loss                        ($62,000)

c) sometimes certain product lines help to amortize fixed costs and even though they are not profitable by themselves, without them, the company's operating profits and net income could be negatively affected.

You might be interested in
Schumpeter’s process of "creative destruction" challenges Porter’s five forces of competition framework by:_______. A. Introduci
ch4aika [34]

Answer:

C. Proposing that competitive behavior determines industry structure rather than the other way round.

Explanation:

The Porter’s five forces of competition is a framework developed by Michael E. Porter in 1979, it is used to measure and analyze an organization's competitiveness in a business environment.

The Porter's five forces of competition framework are:

1. The bargaining power of suppliers.

2. The bargaining power of customers.

3. Threat posed by substitute products.

4. Threats posed by new entrants.

5. Threats posed by existing rivals in the industry.

Joseph Alois Schumpeter was born on the 8th of February 1883 in Moravia, and he later became an Austrian political economist.

Joseph Schumpeter’s process of "creative destruction" challenges Porter’s five forces of competition framework by proposing that competitive behavior determines industry structure rather than the other way round.

From Schumpeter’s perspective, competition among organizations is a process of "creative destruction." He argued that, the essential fact about capitalism is the process of "creative destruction."

Hence, the competitiveness of a business environment causes market dominating organizations to face constant challenges from their counterparts through innovations.

3 0
3 years ago
Metlock Windows manufactures and sells custom storm windows for three-season porches. Metlock also provides installation service
Xelga [282]

Answer:

June 1 2020

No entry

September 1, 2020

Dr Cash $1,980

Dr Accounts receivable $300

Cr Sales revenue $1,730

Cr Unearned sales revenue $550

September 1, 2020

Dr Cost of goods sold $1,140

Cr Inventory $1,140

October 15 2020

Dr Cash $300

Dr Unearned service revenue $550

Cr Accounts receivable $300

Cr Service Revenue $550

Explanation:

Preparation of the journal entries for Geraths in 2020

June 1 2020

No entry

September 1, 2020

Dr Cash $1,980

Dr Accounts receivable $300

($1,730+$550+$1,980)

Cr Sales revenue $1,730

($1,980/$2,610*$2,280)

($1,980+$630=$2,610)

Cr Unearned sales revenue $550 ($630/$2,610*$2,280)

September 1, 2020

Dr Cost of goods sold $1,140

Cr Inventory $1,140

October 15 2020

Dr Cash $300

Dr Unearned service revenue $550

Cr Accounts receivable $300

Cr Service Revenue $550

6 0
3 years ago
What is an incentive for a person to contribute to an IDA? It earns the highest interest rates available at a bank. It is good f
vagabundo [1.1K]
The correct answer for the question that is being presented above is this one: "An organization matches the amount deposited." An incentive for a person in order to contribute to an IDA is that an organization matches the amount deposited.
5 0
4 years ago
Read 2 more answers
Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,
AveGali [126]

Answer:  Debit Notes Receivable          7,800  

Sales(to record sales)   7,800

Explanation:

When a customer signs a promissory note in exchange for commodity then the entry to record sales is recorded by debiting notes receivable.

here,  sales = $7,800 = Debit Notes Receivable  

The entry to record the sales transaction would be

Debit Notes Receivable          7,800  

Sales(to record sales)   7,800

3 0
3 years ago
Sarah’s marketing team was beginning the process of developing a new product to expand their current product line and/or mix. At
vlada-n [284]

Answer: New-product strategy

Explanation:

Based on the information given in the question, Sarah and her team were at the new product strategy stage of the new product development process.

This is a strategy that is used to develop a new product. The strategy helps to answer questions such as who will benefit from the products, the goals of the company and other necessary details.

5 0
3 years ago
Other questions:
  • 4. What's the term for the profit made from selling a stock at a higher price than the price paid for the stock?
    12·1 answer
  • A monopolistically competitive firm is operating in the short run at the optimal level of output and is earning negative economi
    12·1 answer
  • Suppose you are a leader responsible for an organization’s vision/mission statements. How often do you think they should be chan
    11·1 answer
  • Ethics is a hot topic in business, as well as in Project Management. Using some of the examples presented therein, what kinds of
    8·1 answer
  • When a firm initiates or increases a cash discount, the net effect on the accounts receivable investment is difficult to determi
    5·1 answer
  • Gannon Enterprises is in the midst of a major strategic change. To lessen resistance from some of thesenior managers who are opp
    6·2 answers
  • current assets and current liabilities were $100 million and $40 million, respectively. The prior year, 2018, Jones and Co. repo
    12·1 answer
  • Use the following information for calendar year 2020: Accounts receivable, January 1 $125,000 Credit sales during the year 1,400
    13·1 answer
  • Describe the two basic kinds of energy and explain how energy and power are related.
    5·1 answer
  • Which of these is a personal retirement plan in which earnings are taxed at withdrawal? a. 401(k) b. roth ira c. traditional ira
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!