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Lyrx [107]
2 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]2 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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Answer:

The correct answer is (A)

Explanation:

The cost which is directly associated with converting materials into a finished product is known as direct labour cost. The cost of wages paid to employees is the direct cost involved in the manufacturing process. In other words, a cost that is directly involved in the production of goods and services is the direct cost, for example, direct cost, direct commission, direct material cost.

5 0
3 years ago
Which entry records the investment of cash by John, owner of a sole proprietorship?
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Explanation:

The entry records the investment of cash by John, owner of a sole proprietorship is: Debit Cash; credit John, Capital.
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3 years ago
What are organizations that are in the business of benefiting society and operate like a business called
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Answer:

Nonprofit organisation

Explanation:

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3 years ago
Kenya performs research and creates reports for her boss, the company's Chief Executive, Kenya's job title is best
CaHeK987 [17]

Answer:

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The administrative assistants, receptionists, and file clerks perform important functions.  In their various capacities and roles, they help their bosses to function more efficiently and effectively by relieving them of routine tasks.  As they perform these duties, their bosses are enabled to concentrate their efforts and time in managing their assigned responsibilities.  However, these job titles are not universally uniform, as it depends on the organization.

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The goals of labor are such that they want better pay and working conditions.

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In addition to good pay, labor also requires good perks like health cover, safe and secure work conditions, and the environment.

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