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Serjik [45]
3 years ago
14

Garnett Co. shipped inventory on consignment to Hart Co. that originally cost $50,000. Hart paid $1,200 for advertising that was

reimbursable from Garnett. At the end of the year, 40% of the inventory was sold for $32,000. The agreement stated that a commission of 10% will be provided to Hart for all sales. What amount should Garnett report as net income for the year?
Business
1 answer:
Yuki888 [10]3 years ago
8 0

Answer:

The answer is: Garnett Co.'s net income is $7,600

Explanation:

To determine the net income we must first calculate the cost of goods sold and the commissions paid:

  • COGS = $50,000 x 40% = $20,000
  • Commissions = $32,000 x 10% = $3,200

Now we can elaborate the following income statement for Garnett Co.

Total sales                     $32,000

COGS                             ($20,000)

Commissions                 ($3,200)

<u>Advertising expense     ($1,200)    </u>

Net income                    $7,600

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Nolan Dry Cleaners has determined the following about its​ costs: Total variable expenses are $40,000​, total fixed expenses are
blondinia [14]

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

3 0
3 years ago
Many mining and mineral extraction processes tend to exhibit increasing returns to scale. Suppose copper mines have increasing r
IrinaK [193]

Answer: D) Output decreases by more than 25 percent

Explanation:

When a firm is said to be experiencing Increasing Returns to Scale, it means that for every additional unit of a factor of production, the firm experiences a higher increase in production than the additional unit. For example, if a Firm's output increases by 1.5 every time they hire an extra worker, the firm is said to be going through Increasing Returns to Scale.

With that same logic, if factors of production were reduced, the company undergoes a reduction in output that is bigger than the reduction in the factor of production.

For this reason, option D is correct in saying that Output decreases by more than 25 percent.

6 0
3 years ago
The management department at a local university began posting all assignments and other class materials to a course management w
Mamont248 [21]

Answer:

The correct answer is A.process.

Explanation:

Due to the extension of the term “innovation” it is important to keep in mind that two different meanings can be distinguished:

  1. Innovation, as a process by which an idea is transformed into a novel product or service in the market, or by which a new manufacturing process or new organization or marketing methods is incorporated in the company (innovation capacity of the company).
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6 0
3 years ago
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Dahasolnce [82]

 

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3 0
3 years ago
In general, term loans can be created more quickly than bond issues because they (1) tend to be negotiated directly with the len
swat32

Answer:

The correct answer is letter "A": True.

Explanation:

Term loans are those where individuals or organizations request a certain amount of money from a financial institution with the promise the individual or institution will be in charge of a series of periodical payments (principal + interest) to cover the debt.

<em>Term loans are privately negotiated between borrowers and lenders, offering the advantage of speed because there is no need for filings with the Securities and Exchange Commission (SEC) or other regulatory entities to request them.</em>

4 0
3 years ago
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