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Mice21 [21]
3 years ago
7

Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,300,000 based on a sa

les volume of 260,000 video disks. Disk City has been selling the disks for $25 each. The variable costs consist of the $7 unit purchase price of the disks and a handling cost of $2 per disk. Disk City's annual fixed costs are $560,000.
Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent. (Ignore income taxes.)
What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $25? (Do not round intermediate calculations and round your final answer to nearest dollar amount.
Business
1 answer:
Marat540 [252]3 years ago
5 0

Answer:

big dog

Explanation:

You might be interested in
Coronado Industries had 293000 shares of common stock issued and outstanding at December 31, 2020. No common stock was issued du
Gnesinka [82]

Answer:

$3.72

Explanation:

earnings per common share = earning attributable to holder of common stock ÷ weighted average number of common stocks outstanding

therefore,

earnings per common share = $3.72

5 0
3 years ago
With reference to the new products process, a firm adopts the ready—fire—aim approach when it:1. lacks senior management support
iris [78.8K]

Answer:

4. does not do the required homework before beginning development.

Explanation:

Ready Fire Aim approach is undertaken when the company is not prepared and has placed the product in the market with the aim that improvements will come later.

This approach is used to collect the responses of the customers and study the patterns of behavior. As we get the responses we improve the product accordingly.

This approach is used in product development processes.

4 0
3 years ago
Match the following terms to their definitions: 1. privatization 2. restructuring 3. agent 4. leveraged buyouts 5. underpricing
RUDIKE [14]

Answer:

1) UNDERWRITE involves the act of taking on any risk that might be related with the issue of a new security.

2. BEST EFFORTS is the responsibility of sharing a security without transferring the risk associated with the new issue from the company to the investors.

3. UNDERWRITING SYNDICATE involves a group of investors formed to share the risk of a security offering.

4.UNDER PRICING is the process of setting the price of a new security slightly below the market value to ensure a receptive sale.

5. AFTERMARKET is a secondary market where securities are traded after its initial offering to the public.

6.AGENT is one who sells or places an asset for another party.

7. SHELF REGISTRATION permits large companies to file one comprehensive statement with the Securities and Exchange Commission (SEC) outlining their financial plans for the next two years.

8. LEVERAGE BUYOUT occurs when either management or another investment group borrows the needed cash to rebuy all traded shares from the shareholders.

9. RESTRUCTURING involves the divisions and products are sold and assets redeployed into better yielding areas.

10. PRIVATIZATION is a situation Investors that take a company public, the investment bankers sell companies previously owned by governments.

8 0
3 years ago
For February, sales revenue is $900,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising e
FinnZ [79.3K]

Answer:

Option  A

Total selling expenses for the month of February=$245,600

Explanation:

<em>The selling expenses include all the expenditure incurred in respect of activities revolving around the marketing and distribution of goods to the final consumer.</em>

<em>These expenditures may be fixed or variable in nature</em>

DATA

Sales revenue -  $900,000;

Sales commission - 5%×  900,000 =  45000

Sales manager salaries  -  96,000

Advertising expenses - 80,000

Shipping expenses - 2% × 900,000 = 18000

Miscellaneous selling expenses = 2100 + (1/2× 1%× 900,000) =6600

Total selling expenses for the month of February

= 45000 +  96,000 + 80,000+ 18000 + 6600  = $245,600

Total selling expenses for the month of February=$245,600

6 0
3 years ago
Miss Hap, the company bookkeeper, recorded the annual repair costs on the company's machinery as an increase to the Machinery ac
ololo11 [35]

Answer:

D

Explanation:

Repairs shouldn’t be recorded to the equipment (asset) account but should be recorded as an expense instead.

6 0
3 years ago
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