1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dalvyx [7]
3 years ago
10

Sannella Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales S

elling price $ 220 100 % Variable expenses 66 30 % Contribution margin $ 154 70 % Fixed expenses are $991,000 per month. The company is currently selling 8,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $74,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 200 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice increase of $1,246,600 increase of $71,800 increase of $14,600 decrease of $133,400

Business
2 answers:
miskamm [114]3 years ago
4 0

Answer:

Yes, The primary objective of financial reporting is to provide useful financial information regarding investment and credit decisions to the providers of capital, The objectives of tax accounting are to raise revenues, achieve economic objectives through fiscal policy and achieve social objectives.

Answer :

2- The increase of 14,600

Explanation

[Find the attachment]

My name is Ann [436]3 years ago
3 0

Answer:

Increase in net Operating income = $14,600

Explanation:

Sales

i. 8000 units X $220

=$1,760,000

ii. 8200 units X $220

=$1,804,000

Variables expenses

i. 8000 units X $66 = $528,000

ii8200 units X $72 = $631,400

Contribution margin

CM=Sales -Variables expenses

i. 1,760,000 - 528,000=

$1,232,000

ii. 1,804,000 - 631,400

=$1,172,000

Our Fixed expenses are

i. $991,000

ii. $917,000

Therefore Net operating income = Contribution margin - Fixed expenses

i. 1,232,000 - 991,000

=$241,000

ii. 1,172,600 - 917,000

=$255,600

From the answers above, there is an increase of $14,600 as a difference between $241,000 and $255,600 which are the Net Operating income.

You might be interested in
While setting up their corporation, ming and jie implement a system of governing their organization so that the interests of cor
Dmitriy789 [7]
Corporate government <span />
8 0
3 years ago
Rank the following items from most liquid to least liquid:
Illusion [34]

5 Bill, Saving Account, US treasury Bond, google stock, Picasso Painting, House

3 0
3 years ago
Read 2 more answers
For accounting errors, which of the below sentences is true?
Monica [59]

Answer:

The correct option is C

Explanation:

Accounting error is the type of error in the accounting which was not done intentionally but when spotted, the error need to be fixed immediately. And when there is no immediate solution for the error, an investigation is conducted in order to find out who caused the error.

The statement which is true is that they represent the fraud which usually result in the legal action to be taken.

7 0
3 years ago
Marin Company's accounts receivable arising from sales to customers amounted to $131000 and $114000 at the beginning and end of
nekit [7.7K]

Answer:

$481,000

Explanation:

To determine the cash flows from operating activities, the net Income for the year must be adjusted by non - cash items and changes in working capital items.

Therefore, given a decrease in Accounts Receivable $17,000 ($131000 - $114000) . Then the cash flows from operating activities to be reported on the statement of cash flows is $481,000 ($498000 - $17,000) .

4 0
2 years ago
Cash paid to retire notes $ 112​ Common shares acquired for treasury 172​ Proceeds from issuance of preferred stock 254​ Proceed
arsen [322]

Answer:

$176 million

Explanation:

The calculation of net cash inflows from financing activities is shown below:-

Net cash inflows from financing activities

Proceeds from issuance of preferred stock $254 million

Proceeds from issuance of subordinated  bonds $292 million

Less: Cash dividends paid on preferred stock (86) million

Less: Cash paid to retire note ($112) million

Less: Common shares acquired for treasury (172) million

Net cash inflows from financing activities $176 million

The positive sign represents the cash inflow and the negative sign represents the cash outflow

6 0
3 years ago
Other questions:
  • Which of the following steps, if taken by Walmart, would be characterized as a strategic, rather than tactical, action? a. Aggre
    13·1 answer
  • Assume the new plant is built and that next year the company manufactures and sells 30,000 balls (the same number as sold last y
    7·1 answer
  • Net income under absorption costing is gross profit less Select one: a. cost of goods sold. b. fixed manufacturing overhead and
    13·1 answer
  • Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 23,900 Oct. 31 Finished goods X 31 Dir
    14·1 answer
  • The Foreign Corrupt Practices Act (FCPA) has been criticized for:
    7·1 answer
  • The Guitar Shoppe reports the following sales forecast: August, $130,000; and September, $230,000. Total sales include 35% cash
    10·1 answer
  • When preparing to go shopping after the Christmas holidays, Christy actively scans the ads in the local newspaper for coupons an
    15·1 answer
  • Your social media promotion can either narrowly target 50,000 users with an estimated click rate of 10% or broadly
    13·1 answer
  • ____ allow a company to monitor whether salespeople are engaging in tasks such as calling on new accounts, collecting past-due a
    7·1 answer
  • You bought a put with a strike price of $25. the current stock price is $23. what is the current payoff value of this option?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!