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ryzh [129]
3 years ago
9

During its most recent fiscal year, Raphael Enterprises sold 340,000 electric screwdrivers at a price of $19.20 each. Fixed cost

s amounted to $1,156,000 and pretax income was $1,496,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?
Business
2 answers:
Novay_Z [31]3 years ago
8 0

Answer:

Variable costs=$3,876,000

Explanation:

Given Data:

Fixed costs amounted=$1,156,000

pretax income=$1,496,000.

Units Sold=340,000

Price of each unit sold=$19.20

Required::

Variable costs in the company's contribution margin income statement for the year =?

Solution:

Pretax Income=Revenue-Fixed costs-Variable costs

Revenue=Units Sold*Price of each unit sold

Revenue=340,000*$19.20

Revenue=$6,528,000

Pretax Income=Revenue-Fixed costs-Variable costs

$1,496,000=$6,528,000-$1,156,000-Variable costs

Variable costs=$6,528,000-$1,156,000-$1,496,000

Variable costs=$3,876,000

nirvana33 [79]3 years ago
8 0

Answer:

Variable Costs should be recorded at  $ 3876000

Explanation:

Since we know the total fixed costs of $ 1156000 and we have the total sales figure of $ 6528000  (340000 x $19.20) we can determine the variable cost amount by deducting the fixed costs and pretax income of $ 1496000 from the sales figure. Thus the variable cost becomes the balancing figure. Variable Costs is thus $ 3876000 as it's the balancing figure to get to a pretax income of $ 1496000

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The growth of industrial manufacturing affected skilled tradesmen by:.
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removing control of their labor and their sense of independence.

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A communication plan is a key component for giving guidelines on how to track project:________a. Issues.b. Costs.c. Defects.d. B
AfilCa [17]

Answer: a. Issues

Explanation:

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3 years ago
10. Uneven cash flows A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variabl
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Answer:

$1,155,478

Explanation:

Present value is the sum of discounted cash flows

Present value can be found using a financial calculator

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Cash flow in year 2 =  $20,000

Cash flow in year 3 = $480,000

Cash flow in year 4 = $450,000

Cash flow in year 5 = $550,000

I = 9%

Present value = $1,155,478

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
3 years ago
Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribu
quester [9]

Answer:

a. The contribution margin ratio will be 41%

b. The income from operations will be $12,420,000.

Explanation:

a. The sales are given at $112,900,000.

The fixed costs are $25,000,000.

The variable costs are $66,611,000.

The contribution margin will be

=Sales-variable costs

=$(112,900,000-66,611,000)

=$46,289,000

The contribution margin ratio will be

=(Contribution margin/sales)*100

=($46,289,000/ $112,900,000)*100

=41%

b. Now, if the contribution margin ratio is 40%.

The sales are given at $34,800,000.

The fixed costs are $1,500,000.

Income from operations or operating profit will be

=(sales*contribution margin ratio)-fixed cost

=$(34,800,000*0.4)-$1,500,000

=$12,420,000

7 0
3 years ago
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