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Lyrx [107]
3 years ago
11

Bolding Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $47,500. Assuming that the fixed monthly expe

nses do not change, what is the best estimate of the company's net operating income in a month when sales are $137,000?a. $83,570b. $5,930c. $36,070d. $89,500
Business
1 answer:
Natali5045456 [20]3 years ago
3 0

Answer:

c. $36,070

Explanation:

contribution margin ratio is the ratio of the contribution to sales of an entity for a given period.

contribution margin ratio= contribution/sales

where contribution is the difference between sales and the variable cost

Given;

sales = $137,000

contribution margin ratio = 61% = 0.61

0.61 = contribution/$137,000

contribution = $137,000 × 0.61

= $83,570

Net operating income is the difference between the contribution and the fixed cost.

Fixed cost = $47,500

Net operating income = $83,570 - $47,500

= $36,070

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notka56 [123]

Answer:

B. decision styles are consistent among top managers

Explanation:

Decision making styles differ between managers.  Many managers exercise autocratic style which is authoritative wherein very limited inputs from the subordinates are taken and there is little scope for constructive advises.

In heuristic style, the strategies help managers to take clear cut decisions in a prompt manner. In such a form, decisions are arrived at quickly.

Managerial decision making methods differ from manager to manager and are an outcome of managers own judgement and demeanor.

Hence it is evident from above points that decision styles are not consistent among top managers.

5 0
3 years ago
How much total depreciation and amortization expense did Patnode record during 2015?
Oxana [17]

Answer:

d. $5,000

Explanation:

Patnode's information is missing, so I looked it up. I found the balance sheet for 2014 and 2015. Hope that it is the same question:

total depreciation expense for 2015 = change in accumulated depreciation (2015 - 2014) + change in accumulated amortization (2015 - 2014) = ($3,000 - $0) + ($3,000 - $1,000) = $3,000 + $2,000 = $5,000

3 0
3 years ago
Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in a pr
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4 0
3 years ago
Art Company issued 6%, 5 year bonds, with par value of $1,600,000, paying semiannual interest for $1,470,226. The annual market
Soloha48 [4]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Bond carrying value = $1,470,226

Rate of interest = 8%

Rate of interest (Semiannual ) = 4%

So, we can calculate the the bond interest expense on the first interest payment by using following formula:

The bond interest expense = Bond carrying value × rate of interest (semiannual)

By putting the value we get

= $1,470,226 × 4%

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6 0
3 years ago
A budget is a plan for spending money based on income, expenses and
Butoxors [25]

Answer:

TRUE

Explanation:

budgets are made to help design a plan for spending

4 0
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