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oee [108]
2 years ago
8

Consider the following year-end information for a company: Cost of goods sold $ 420,000 Sales revenue 800,000 Non Operating expe

nses 10,000 Operating expenses 170,000 Income tax expense 80,000 What amount will the company report for operating income
Business
1 answer:
Bad White [126]2 years ago
4 0

Answer:

$210,000.

Explanation:

Given:

Cost of goods sold = $420,000

Sales revenue = $800,000

Operating expenses = $170,000

Question asked:

What amount will the company report for operating income ?

Solution:

As we know, Operating Income = Gross Profit- Operating Expenses

First of all we will find gross profit,

Gross Profit = Net Sales – Cost of goods sold

                    = $800,000 -  $420,000

                    = $380,000

Now, Operating Income = Gross Profit- Operating Expenses

                                        = $380,000 -  $170,000

                                        = $210,000

Therefore, consider the following year-end information for a company, its Operating Income is  $210,000.

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Seller Jones signed an exclusive right to sell listing on her home with Muller Realty for $155,000 at a commission rate of 5% to
kramer

Answer:

$3,875

Explanation:

Data given in the question

Selling value of the home = $155,000

Commission rate = 5%

Share basis = equally

So, by considering the above information, the Muller received amount is

= Selling value of the home × commission rate ÷ share basis

= $155,000 × 5% ÷ 2

= $7,750 ÷ 2

= $3,875

By considering the all the information given in the question we can easily find out the received amount by the Muller

8 0
2 years ago
Alpha company anticipated unit sales of widgets are January, 5,000; February, 4,000; and March 8,000. Alpha consistently maintai
alexdok [17]

Answer:

1. 4,200 units

2.7,200 units

Explanation:

<u>Prepare the Production Budget for January and February</u>

                                                               January                   February

Budgeted Sales                                       5,000                       4,000

<em>Add </em>Budgeted Closing Stock                 3,200                       6,400

Total Production Needed                       8,200                      10,400

<em>Less</em> Budgeted Opening Stock             (4,000)                     (3,200)

Budgeted Production                             4,200                        7,200

Budgeted Opening Stock for January comes from 80% of closing inventory from December !

5 0
3 years ago
Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,0
seraphim [82]

Answer:

1. Company wide break-even point in dollar sales= $425,000

2. Break-even point in dollar sales for North region= $200,000

3. Break-even point in dollar sales for South region = $100,000

Explanation:

1. Computation of the companywide break-even point in dollar sales

First step is to find the Contribution margin ratio

Using this formula

Contribution margin ratio = Contribution margin / Sales

Contribution margin ratio:

Total company: ($240,000/$600,000)=0.4

North : ($120,000/$400,000)=0.4

South : ($120,000/$200,000)=0.6

Now let compute the Company wide break-even point in dollar sales using this formula

Company wide break-even point in dollar sales= Fixed costs / Contribution margin ratio

Let plug in the formula

Company wide break-even point in dollar sales= ($120,000 + $50,000) / 0.4

Company wide break-even point in dollar sales= $425,000

2. Computation for the break-even point in dollar sales for the North region using this formula

Break-even point in dollar sales for North region = Traceable fixed expenses / Contribution margin ratio

Let plug in the formula

Break-even point in dollar sales for North region= $60,000 / 0.3

Break-even point in dollar sales for North region= $200,000

3. . Computation for the break-even point in dollar sales for the South region.

Using this formula

Break-even point in dollar sales for South region = Traceable fixed expenses / Contribution margin ratio

Let plug in the formula

Break-even point in dollar sales for South region = $60,000 / 0.6

Break-even point in dollar sales for South region = $100,000

5 0
2 years ago
Which of the following is not a business management perspective that goes beyond the numbers to enable intelligent planning, con
lana [24]
<h2>Lean Production Perspective</h2>

Explanation:

There are 6 Business management perspective. They are:

  1. An ethics perspective
  2. Strategic management perspective
  3. Enterprise risk management
  4. Corporate social responsibility perspective
  5. A process management perspective
  6. A leadership perspective

Here the Lean production perspective does not come under the business management perspective.

Lean production actually deals with cutting down of waste and whilst ensuring quality. This approach is basically a cost-cutting approach where it brings benefit to the business. This is one of the most efficient methods.

4 0
2 years ago
What happens to the Purchasing Power of Money, Prices and the Nominal Rate of Interest in CASE 1: the case of an increasing supp
velikii [3]

Answer:

Case 1: The purchasing power of money will decrease, prices will increase and nominal interest rate will decrease.

Case 2: The purchasing power of money will increase, prices will decrease and nominal interest rate will increase.

Case 3: The purchasing power of money will increase, prices will decrease and nominal interest rate will increase.

Case 4: The purchasing power of money will decrease, prices will increase and nominal interest rate will decrease.

Explanation:

Case 1: The purchasing power of money will decrease, prices will increase and nominal interest rate will decrease.

Case 2: The purchasing power of money will increase, prices will decrease and nominal interest rate will increase.

Case 3: The purchasing power of money will increase, prices will decrease and nominal interest rate will increase.

Case 4: The purchasing power of money will decrease, prices will increase and nominal interest rate will decrease.

3 0
2 years ago
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