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Ne4ueva [31]
3 years ago
8

Dimitrov Corporation, a company that produces and sells a single product, has provided its contribution format income statement

for July.
Sales (6,800 units) $401,200
Variable expenses 265,200

Contribution margin 136,000
Fixed expenses 103,500
Net operating income $32,500



If the company sells 6,700 units, its net operating income should be closest to:

a. $31,979
b. $32,500
c. $28,000
d. $30,500
Business
1 answer:
makkiz [27]3 years ago
8 0

Answer:

Option (d) is correct.

Explanation:

Contribution margin per unit:

= Contribution margin ÷ No. of units sold

= 136,000 ÷ 6,800

= $20 per unit

If the company sells 6,700 units, then

Net operating income:

= Contribution margin - Fixed expenses

= (6,700 units × $20 per unit) - $103,500

= $134,000 - $103,500

= $30,500

Therefore, the net operating income of this company is closest to $30,500.

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considering a project that is equally as risky as the firm's current operations. The firm has a cost of equity of 15.4 percent a
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Answer:

$9230.70

Explanation:

Debt ratio = Debt equity ratio / (Debt equity ratio+1) = 0.46/(0.46+1) = 0.46/1.46

Equity ratio = 1/(Debt equity ratio+1) = 1/(0.46+1) = 1/1.46

WACC = 15.4%×1/1.46+8.9%×(1-21%)×0.46/1.46 = 12.76%

Net present value = 20000/(1+12.76%) + 30000/(1+12.76%)^2 + 40000/(1+12.76%)^3 - 60000 = $9230.70

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jenyasd209 [6]
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3 years ago
In private equity, what does an analyst do?
inessss [21]
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Read 2 more answers
Spruce Company uses a job costing system. Spruce Company's schedule of cost of goods manufactured showed the following amounts f
julsineya [31]

Answer:

The amount of allocated manufacturing overhead costs for August is $47,150

Explanation:

For computing the allocated manufacturing overhead costs, first we have to compute the direct labor hours which is shown below:

=  Direct labor cost ÷ per hour rate

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Now the allocated manufacturing overhead costs equals  to

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5 0
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Why should you research the company’s mission and goals? You can use this information to show how you will be an asset to the co
Lorico [155]

Answer

The reason for researching the company’s mission and goals is so that You can use this information to show how you will be an asset to the company.

Explanation

Mission of a company the clarity of what your company can do do to its clients and what services can be offered that is with the aim of gaining more clients in order to increase the company's profit and make its profile more appealing. It also describes who the company is and why you as the client you should be part of it.

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