Answer:
The answer is: Garnett Co.'s net income is $7,600
Explanation:
To determine the net income we must first calculate the cost of goods sold and the commissions paid:
- COGS = $50,000 x 40% = $20,000
- Commissions = $32,000 x 10% = $3,200
Now we can elaborate the following income statement for Garnett Co.
Total sales $32,000
COGS ($20,000)
Commissions ($3,200)
<u>Advertising expense ($1,200) </u>
Net income $7,600
Answer:
a. Value of Ending inventory $ 22025
b. Profit= $ 10429
c. Amount Remitted to the Consignor $32454
Explanation:
Windsor Company
Goods Sent on Consignment 90 * $ 480= $ 43,200
Shipping Charges $ 850
Total $44050
Cost of One Freezer = $ 44050/ 90= $ 489.44
Cost of 45 Freezers= $22025
The ending inventory value is calculated by multiplying the unit costs with the units at hand.
a. Value of Ending inventory at the Hands of the Consignee = Units* Cost Price = 45 * $ 489.44= $ 22025
Sales by the Consignee 45* $ 780= $ 35100
b. Profit= Sales - (Cost + Expenses) = $ 35100- ($22025 + $2646)
= $ 10429
Profit is calculated by subtracting all the expenses and the cost from the sales
Installation Charges $330
Advertisement Costs $ 210
Commission (6% of 35100)= $2106
Total Expenses $2646
c. Amount Remitted to the Consignor = Sales - Expenses= ( $ 35100- $2646 )= $32454
Answer:
remains unchanged as price increases when demand is unit elastic.
Explanation:
Total revenue = price × quantity
Demand is elastic when a small change in price has a greater effect on the quantity demanded.
If price is increased and demand is elastic, quantity demanded would fall more than the increase in price and total revenue falls.
Demand is inelastic if a small change in price has little or no effect on quantity demanded.
If price is increased and demand is inelastic, change in quantity demanded would be less than changes in price. As a result, total revenue would increase.
Demand is unit elastic if a change in price has an equal proportional effect on quantity demanded. The elasticity of demand always sums up to one.
If price is increased and demand is unit elastic, there would be no change in total revenue.
I hope my answer helps you
Answer:
The income taxes figure of $203,000 is missing from the information provided:
The net income from the budgeted income statement is $466,520
Explanation:
The multiple step income statement differentiates operating revenue from non-operating revenue,operating expenses from one off non-operating expenses as operating gains and losses from non-operating ones
North Company budgeted income statement
Total sales revenue $2,190,100
Variable costs of sale($24*50,220) ($1,205,280)
Gross profit $984,820
Selling and administrative expenses ($305,300)
Profit before interest & taxes $678,940
Interest expense ($10,000)
Income taxes ($203,000)
Net income $466,520
Answer:
d. functional
Explanation:
A functional manager can be described as a managers whose responsibility is to manage an organizational unit such as a department within an organization.
A manager can be given the responsibility to manager a specific department such as marketing, engineering, IT, or public relations.
The primary role of a functional manager is to be in charge and manage resources in his department, and to also to direct the technical work of people working on a project under his functional area.
Therefore, managers who are responsible for just one organizational activity are known as <u>functional managers</u>. The correct option is d. functional.
