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MariettaO [177]
3 years ago
6

If the variable cost per unit increases by $1, spending on advertising increases by $1,600, and unit sales increase by 220 units

, what would be the net operating income?
Business
1 answer:
leonid [27]3 years ago
3 0

Answer:

$12,300

Explanation:

The computation of the net operating income is shown below:

Sales                           $85,400      (1,220 units × $70)

Less: Variable cost   -$48,190        (1,220 units × $39.5)

Contribution margin  $37,210

Less: Fixed expenses  -$24,910      ($23,310 + $1,600)

Net operating income $12,300

The cost per unit is

= $70,000 ÷ 1,000 units

= $70

Since the sales units is increased by 220 units, so total units increased by 1,000 units + 220 units = 1,220 units

The variable cost  per unit is

= $38,500 ÷ 1,000

= $38.5

The variable units is increased by $1 so total units increased by $38.5 + $1 = $39.5

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Answer:

The answer is stated below:

Explanation:

If the SEC and the AICPA, worked altogether in order to share the information, they might have detected the fraud prior. The case states that the Madoff Securities does not required to submit the peer review program to AICPA as Friehling, had recorded that he did not perform or conduct any audits.

Recommendation

1. The policy execution for the exchange of the information among the two firms would be useful to detect the fraud.

2. The PCAOB should spend more resources an attending the hotline of whistle blowing through executing the policies which need certain complaints to be addressed effectively.

3. The firms or company should have done more in order to verify the financial statements assertions, which surrounds the investments. The PCAOB need to execute the policy that require the companies (such as Madoff Securities) to correctly answer the inquiries of the auditor.

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3 years ago
The production engineers have prepared a report detailing the types and amounts of inventory required for production. This docum
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Answer:

C. Bill of Materials

Explanation:

The engineers make the list and then it is checked against the raw materials record to know how much existences are for each of the raw materials requested.

This is done to create some control, as the person that make the bill aren't the person who check the inventory therefore, they cannot overstate or understate the materials as they will be checked for the amount used.

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The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. CANTON CORPORATION Income
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Answer:

Aftertax income     47,278.7

Explanation:

Sales 14,600 units at $14.30 (10%Δ)       208,780

Cost of goods sold (unchanged)        <u>   (116,800)   </u>

      Gross profit                                         91,980

S&A expenses; 5% of sales

208,780 x 5% =                                          (10,439)

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Operating profit                                           67,541  

Taxes (30% of operating profit)             <u>    20,262.3  </u>

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3 years ago
Which audience analysis anticipates resistance if something is going to cost money?
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The audience analysis that anticipates resistance if something is going to cost money is a situational analysis. This is further explained below.

<h3>What is situational analysis?</h3>

Generally, An organizational situation may be better understood by doing a situational analysis, which is a set of techniques for evaluating both the internal and external variables of a company.

In conclusion, A situational analysis is the kind of audience analysis that determines whether or not there will be opposition to anything if it will cost money.

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6 0
2 years ago
7. Two farmers, A and B, each apply 100 tons of manure on their fields. To reduce manure runoff, the government has decided to r
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Answer:

Explanation:

1) The total cost of reducing runoff if the farmers are not allowed to trade permits is:

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where:

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2) The total cost of reducing runoff if the farmers are allowed to trade permits is:

Since farmer A will be willing to sell his permits to farmer B for a price that is ≥ $25 and ≤ $50, the total cost of reducing runoff is $2,500.

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