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3 years ago

A company has sales of $752,800 and cost of goods sold of $301,800. its gross profit equals:

1 answer:

Elena-2011 [213]3 years ago

7 0

Revenue = $752,800
Cost of goods sold = $301,800

To solve for the gross profit:
Gross profit = revenue - cost of goods sold
Gross profit = $752,800 - $301,800
Gross profit = $451,000

The gross profit shows the profits a company has after taking their costs to make the product and subtract them from the sales they had.

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Let's say there's a company that can fully tax deduct the interest on its loans. If this company borrows more, then the discount

umka21 [38]

Answer:

High

Low

Explanation:

When a company borrows funds it has opportunity to avail tax shield on the interest amount of the borrowing fund. If the company borrows more fund then the discounted value of tax shield will increase while the financial distress cost will decrease.

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3 years ago

Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most r

sergejj [24]

Answer:

$15,000

Explanation:

Total Assets-Remaining liabilities=Solvency

$232,000-$217,000=$15,000

If the waiver of loan makes the taxpayer solvent,then the extent by which he is solvent will be included in his/her gross income.

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3 years ago

Income Statement, Direct and Indirect Cost Concepts, Service Company

Fofino [41]

Answer:

Send It Packing

1. The cost of materials used for packaging and mailing services during May is $11,550.

2. The prime cost for May is $51,170 (direct materials and labor and direct overhead)

3. The conversion cost for May is $43,700 (labor and overhead)

4. The total cost of services for May is $55,250

5. Income Statement for the month of May

Service Revenues $102,100

Cost of services:

Cost of materials used $11,550

Cost direct labor used 25,570

Overhead incurred 18,130 $55,250

Gross profit $46,850

Franchise fee $5,105

Advertising expense 2,750

Administrative costs 3,650 $11,505

Net income $35,345

6. The overhead incurred has $14,050 direct and $4,080 indirect costs. The direct cost was paid to the courier companies for delivery services. The indirect costs were incurred for rent, utilities, and insurance.

Explanation:

a) Data and Calculations:

Beginning inventory of materials = $1,050

Purchases of materials = $11,450

Materials available for use = $12,500

Ending inventory of materials = $950

Cost of materials used = $11,550

Cost direct labor used = 25,570

Overhead incurred = 18,130

Franchise fee (5% of $102,100) 5,105

Advertising expense = 2,750

Administrative costs 3,650

8 0

3 years ago

More Hits Company manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the fol

yuradex [85]

Answer: See explanation

Explanation:

AP = 4.15

SP = 4.0

SQ = 114000 × 2 = 228000

1. Direct Materials Price

= (AQ × AP) - (AQ × SP)

= (246000 × 4.15) - (246000 × 4.0)

= 1020900 - 984000

= 369000 U

2. Direct Materials Quantity

= (AQ × SP) - (SQ × SP)

where SQ = 114000 × 2 = 228000

= (220000 × 4.0) - (228000 × 4.0)

= 880000 - 912000

= 32000 F

3. Direct Labor Price

= (AH × AR) - (AH × SR)

= (58700 × 9.8) - (58700 × 10)

= 575260 - 587000

= 11740

4. Direct Labor Quantity

= (AH × SR) - (SH × SR)

where, SH = 114000 × ½ = 57000

= (58700 × 10) - (57000 × 10)

= 587000 - 570000

= 17000 U

5. Total Overhead Variances

= 352000 - (57000 × 6)

= 352000 - 342000

= 10000 Unfavorable

Check attachment for further details

8 0

3 years ago

I think I have the correct answers but I would like a second opinion

Sergio039 [100]

Answer:

the answer is c

Explanation:

3 is in the hundreds

3 0

3 years ago