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Sati [7]
3 years ago
6

Bloom Company management predicts that it will incur fixed costs of $259,000 and earn pretax income of $493,100 in the next peri

od. Its expected contribution margin ratio is 69%.
Required:1. Compute the amount of total dollar sales.2. Compute the amount of total variable costs.
Business
1 answer:
marissa [1.9K]3 years ago
6 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

Fixed costs= $259,000

Pretax income= $493,100

Contribution margin ratio= 0.69

<u>The contribution margin ratio is the percentage of sales remaining after deducting all variable components.</u>

First, we need to calculate the total contribution margin:

Total contribution margin= pretax income + fixed costs

Total contribution margin= 493,100 + 259,000= $752,100

Now, total sales:

Total sales= total contribution margin/contribution margin ratio

Total sales= 752,100/0.69= $1,090,000

Finally, total variable costs:

Total variable costs= total sales - total contribution margin

Total variable costs= 1,090,000 - 752,100= $337,900

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Answer:

Option C

Explanation:

In simple words, the basic solution to create and maintain healthy diverse environment throughout the organisation is to create a culture that encourage employees to accept each others differences.

Creating such culture will help the trainer to implement the training procedures. Such activities and decisions will lead to less conflicts and more positive results.

7 0
3 years ago
Oaktree Company purchased new equipment and made the following expenditures: Purchase price $ 45,000 Sales tax 2,200 Freight cha
olganol [36]

Answer and Explanation:

The journal entries are shown below:

1. Equipment($45,000 + $2,200 + $700 + $1,000) $48,900  

                 To Accounts payable  $47,200    ($45,000 + $2,200)

                 To Cash  $1,700

(Being the equipment is purchased on cash and credit)

Since the equipment is purchased so it would be debited and the other two accounts i.e account payable and the cash is credited

2.Prepaid insurance $900  

              To Cash  $900

(Being the payment is recorded)

Since there is a prepaid insurance and the same is increased in assets so it would be debited and the cash is paid so it would be credited

3 0
3 years ago
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all invest
Rzqust [24]

Answer:

E. $7,190

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

For project A,

Cash flow in year 0 = $-14,500

Cash flow in year 1 = $9,500

Cash flow in year 2 = $9,500

Cash flow in year 3 = $9,500

I = 15%

NPV = $7190.64

To find the NPV using a financial calacutor:

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

I hope my answer helps you

3 0
3 years ago
The Matthews want to split their refund between savings and checking accounts. How is this accomplished, if possible?
konstantin123 [22]

Answer:

By completing form 8888 from tax application

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5 0
3 years ago
If houston company billed a client for $18,000 of consulting work completed , the accounts receivable asset increases by $18,000
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The answer is

Revenues increases by 18000
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