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wel
4 years ago
9

Remmel Corporation has provided the following contribution format income statement. Assume that the following information is wit

hin the relevant range.Sales (6,000 units) $ 300,000Variable expenses 240,000Contribution margin 60,000Fixed expenses 59,000Net operating income $ 1,000If sales increase to 6,020 units, the increase in net operating income would be closest to:Multiple Choicea. $1,000.00b. $800.00c. $200.00d. $3.33
Business
1 answer:
insens350 [35]4 years ago
3 0

Answer:

Option (c) is correct.

Explanation:

Given that,

Sales (6,000 units) = $ 300,000

Variable expenses = $240,000

Contribution margin = $60,000

Fixed expenses = $59,000

Net operating income = $1,000

Contribution margin per unit:

= Contribution margin ÷ Number of units sold

= $60,000 ÷ 6,000 units

= $10 per unit

If sales increase to 6,020 units,

Contribution margin:

= Contribution margin per unit × Number of units sold

= $10 × 6,020 units

= $60,200

Net operating income:

= Contribution margin - Fixed cost

= $60,200 - $59,000

= $1,200

Increase in net operating income:

= $1,200 - $1,000

= $200

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3 years ago
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Problem 2-16 Balance Sheet (LG2-1) Glen’s Tobacco Shop has total assets of $96.4 million. Fifty percent of these assets are fina
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Answer:

The balance for long-term debt and retained earnings on Glen’s Tobacco Shop’s balance sheet is $18.2 million and $27.8 million respectively

Explanation:

The computation is shown below:

Given that

Debt = 50% ×  Total Assets

= 50% × $96.4 million

= $48.20 million

As we know that

Total Debt = Current Liabilities + Long Term Debt

$48.20 million = $ 30.0 million + Long Term Debt

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$96.4 million = $18.2 million + $30.0 million + $20.4 million + retained earnings

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3 years ago
A __________ strategy can be best defined as a plan, used by international companies, that involves customizing products, promot
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Answer:

Multinational strategy

Explanation:

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3 0
3 years ago
A company should examine this area of the control of information if it wants to determine what data it has the right to monitor
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3 years ago
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Answer:

b. $5,870

Explanation:

Data given in the question

Cash balance per books, May 31 $5,400

Deposits in transit $375

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Outstanding checks $2,400

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4 years ago
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