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Yuki888 [10]
2 years ago
15

Red Carpet Industries had retained earnings of $537,500 and $135,000 of net income. On its previous balance sheet, at 12/31/18,

the company had reported $445,000 of retained earnings. No shares were purchased during 2019. How much in dividends did the firm pay during 2019?
Business
1 answer:
kakasveta [241]2 years ago
6 0

Answer:

$42,500

Explanation:

Red carpet had retained earnings of $537,500 and a net income of $135,000

On the previous balance sheet the retained earnings that was reported was $445,000

The first step is to calculate the change in retained earnings

= $537,500-$445,000

= $92,500

Therefore the amount of dividend paid by the firm can be calculated as follows

=Net income-change in retained earnings

= $135,000-$92,500

= $42,500

Hence the dividend paid by the firm during 2019 is $42,500

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koban [17]

Answer:

The correct answer is $550,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the breakeven points in sales dollars by using following formula:

Breakeven points in sales dollar = Total Fixed Costs ÷ Weighted Average Contribution Margin Ratio

Where, Weighted Average Contribution Margin Ratio =  [15% × 0.80] + [30% × 0.20] = 0.18

By putting the value, we get

Breakeven points in sales dollar  = $99000 ÷ 0.18

= $550,000

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3 years ago
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UNO [17]

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Example:

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7 0
3 years ago
Excel SIM: High-Low Method; Contribution Format Income Statement Analyze a mixed cost using a scattergraph plot and the high-low
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5 0
3 years ago
Kocher Steel typically achieves one of three production levels in any given year: 8 million pounds of steel, 10 million pounds o
AveGali [126]

Answer:

Fixed cost

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Variable costs are costs that change with change in the quantity of the goods or services produced by the business. For example the cost of raw materials.

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In the given question, payment of $10 per pound has to be made no matter what the production level for the year, so this is an example of <u>fixed cost</u>

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