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tester [92]
3 years ago
15

Nolan Dry Cleaners has determined the following about its​ costs: Total variable expenses are $40,000​, total fixed expenses are

$30,000, and the sales revenue needed to break even is $40,000. Determine the​ company's current​ 1) sales revenue and​ 2) operating income. ​(​Hint:​ First, find the contribution margin​ ratio; then prepare the contribution margin income​ statement.)
Business
1 answer:
blondinia [14]3 years ago
3 0

Answer:

Operating income= 40,000

Explanation:

Giving the following information:

Total variable expenses are $40,000​, total fixed expenses are $30,000, and the sales revenue needed to break even is $40,000.

Sales= operating income + fixed costs + variable costs

Sales= 40,000 + 30,000 + 40,000= 110,000

Operating income:

Sales= 110,000

Variable costs= 40,000

Gross profit= 70,000

Fixed costs= 30,000

Operating income= 40,000

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An organization decides to ask three advertising agencies to pitch a proposal to handle the organization's business, instead of
PtichkaEL [24]

Answer:

C.

Explanation:

Satisficing is searching for and accepting something that is satisfactory rather than insisting on the perfect or optimal.

Managers tend to satisfice rather than optimize in considering and selecting alternatives.

Characteristics:

-accept good enough

-do not obsess over other opinions

-can move on after deciding

-happier with outcomes

4 0
3 years ago
Brianna is giving a speech on job specialization for her business class. She will most likely tell the class that one of the rea
valina [46]

Answer:

Option B.

Explanation:

Job specialization can be defined as the process whereby a person or a group of individuals who are highly qualified in a specific field are assigned to complete a particular task or to focus on their area of expertise effectively. As can be deduced from the name, job specialization refers to having a specialty or expertise in a specific sector of work.

Companies have different departments, like accounting and admin, these departments cannot be handled by just one person, regardless of whether the person is skilled in both departments. This is where job specialization comes in.

One other important aspect of job specialization is the potential to increase the level of employees' productivity and output. Productivity is of benefit to the employer, but specialization can also be of benefit to workers in that it may improve employment prospects.

5 0
3 years ago
A company uses activity-based costing to determine the costs of its three products: a, b, and
Keith_Richards [23]

Answer:

$3.10 ; $2.10 and $14.20

Explanation:

The computation of the activity rates is shown below:

For Activity 1

= Budgeted cost ÷ Total budgeted activity of cost driver

= $94,550 ÷ (18,200 + 8,100 + 4,200)

= $94,550 ÷ 30,500

= $3.10

For Activity 2

= Budgeted cost ÷ Total budgeted activity of cost driver

= $53,550 ÷ (7,100 + 13,200 + 5,200)

= $53,550 ÷ 25,500

= $2.10

For Activity 3

= Budgeted cost ÷ Total budgeted activity of cost driver

= $59,995 ÷ (1,175 + 1,000 + 2,050)

= $59,995 ÷ 4,225

= $14.20

7 0
3 years ago
Equivalent Units of Conversion Costs The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inv
umka21 [38]

Answer:

Equivalent units  =   3,855 units

Explanation:

Equivalent unit are notional whole units which represent incomplete work and are used to apportion cost between working in progress and completed work.

Equivalent unit is calculated as:

Degree of completion (%) × Units .

The equivalent units can be calculated by using either the first in first out (FIFO)  or weighted average method.

Here, we will use the FIFO.

FIFO: Under this method, to account for the completed units of a particular period, it is assumed that the opening inventory units must first be completed. That is, the first set of completed units should be the opening inventory.

The table below has been set out for explanation:

Items                   Units Notes Workings Equiv.Units

Opening inventory  200  1 40% × 200 80

Fully worked               3,700  2 100% × 3700 3700

Closing Inventory          300  3 25% × 300 75

Equivalent unit                                  3,855.0

Notes

1. 60% work has already been done in the previous period (September) so in October the balance is done.

2. The fully work represents units of new work introduced in October and completed in the same period. The value is 3900- 200 = 3700

3. The closing inventory is the units of new work started in October but not yet completed at the end of October.

Equivalent units = 3,855.0

4 0
3 years ago
On January 1, Year 1, Parker Company purchased an asset costing $20,000. The asset had an expected five-year life and a $2,000 s
SOVA2 [1]

Answer:

3600

7200

Explanation:

3 0
3 years ago
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