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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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Answer:

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Explanation:

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Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

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The cost method that will yield an ending inventory value that is somewhere between possible high and low costs (prices) using t
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The computation weights the cost of capital depending on the amount of debt and equity used by the firm, providing a clear barrier rate for internal initiatives or future acquisitions.

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Enlightened carmakers hired women designers, engineers, and marketing executives to better understand the way women decide to bu
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Answer:

\boxed{\bold{Most \ women \ dislike \ the \ car-buying \ experience.}}

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