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ivann1987 [24]
3 years ago
10

A firm operated at 80% of capacity for the past year, during which fixed costs were $330,000, variable costs were 70% of sales,

and sales were $1,000,000. operating profit (loss) was
a. $670,000


b. $370,000


c. $140,000


d. $(30,000)
Business
1 answer:
Elanso [62]3 years ago
3 0

Answer:

d. $(30,000)

Explanation:

By the CVP method, operating income is obtained by subtracting fixed costs from the total contribution margin.

Total contribution margin equal total units multiplied contribution margin per unit, which is the same as sales minus total variable cost.

variable costs are 70%  of sales

=70/100 x1,000,000

=$700,0000

Total contribution margin = total sales - total variable

=$1,000,000 - $700,000

=$300,000

Operating income = total contribution margin - fixed costs

=$300,000-$330,000

=($30,0000 )

Loss of $30,000

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The Manufacturing Principles are a set of elements shared by all manufacturing industries that revolve around the concepts of flow and variation. These principles have emerged as a result of close collaboration with the manufacturing industries at both the research and operational levels.

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3 0
1 year ago
(A bond forward) A certain 10-year bond is currently selling for $920 A friend of yours owns a forward contract on this bond tha
sleet_krkn [62]

Answer: -$100

Explanation:

Value of forward contract = Selling price - Forward price on bond

Forward price = Present value of cashflows + Present value of bond

Periodic rate = 7%/ 2 = 3.5% per semi annum

= 8% / 2 = 4%

3.5% will be used to discount the payment 6 months from now as that is the 6 month rate. The rest will be 4%.

= (80 / (1 + 3.5%) ) + ( 80 / ( 1 + 4%)²) + (940 / ( 1 +4%)²)

= $1,020.342

= $1,020

Value of forward contract = 920 - 1,020

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4 0
3 years ago
A company produces 3 products that use labor and raw material. The labor usage, raw material usage, and profit per pound produce
Gekata [30.6K]

Answer:

sea 100% la materia prima disponible

si consume el 40% lo que le queda es 60%

60% < > 40% + 57

20% < > 57

si el 20% es 57 el 100% es 57 x 5 = 285kg

Explanation:

8 0
3 years ago
Joe decided to start washing cars on his street. The other kids in the neighbourhood noticed Joe was making a lot of money washi
Norma-Jean [14]

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The price at which the quantity provided and demanded are equal is referred to as the equilibrium price. It is established by where the demand and supply curves cross. If more goods or services are produced than are needed to satisfy demand at the going rate, there is a surplus, which pushes prices lower.

Reduced demand will result in a drop in the equilibrium price and a reduction in supply. With everything else remaining constant, an increase in supply will result in a decrease in the equilibrium price and an increase in the amount required. The equilibrium price will increase as the supply declines, while the quantity needed will go down.

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8 0
1 year ago
Which of the following errors would cause the adjusted trial balance to be unequal? a.The adjustment for accrued fees of $16,340
STALIN [3.7K]

Answer:

The answer is: B)The adjustment for prepaid insurance was omitted.

Explanation:

The adjusted trial balance is the last step before producing the financial statements of a company. Its format is identical to unadjusted balances, it has three columns: account names, debits and credits. The debit and credit columns are calculated at the bottom and should always be equal. If they aren’t equal, the trial balance was prepared incorrectly.

The only error that would cause the adjusted trial balance to be unequal (debts ≠ credits) is; The adjustment for prepaid insurance was omitted. Prepaid insurance should be debited and cash (or accounts payable) should be credited.

6 0
3 years ago
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