Why do we need to budget our resistance/income

recent monthly contribution format income statement: Sales$1,652,000 Variable expenses 628,880 Contribution margin 1,023,120 Fix

kati45 [8]

Answer:

Gatty Corporation

1. Segmented Income Statement for the most recent month

Division East Central West Total

Sales $422,000 $650,000 $580,000 $1,652,000

Variable expenses 227,880 169,000 232,000 628,880

Contribution margin $194,120 $481,000 $348,000 $1,023,120

Traceable fixed expenses $268,000 $320,000 $191,000 779,000

Common fixed expenses 346,000

Net operating income (loss) $(73,880) $161,000 $157,000 $(101,880)

2. Assuming these estimates are accurate and implemented, the company's net operating loss of $101,880 will decrease by $69,600 to $32,280.

Explanation:

a) Data and Calculations:

GATTY Corporation

Recent monthly contribution format income statement:

Sales $1,652,000

Variable expenses 628,880

Contribution margin 1,023,120

Fixed expenses 1,125,000

Net operating income (loss) $(101,880)

Segmented Income Statement for the most recent month

Division East Central West

Sales $422,000 $650,000 $580,000

Variable expenses as a percentage of sales 54% 26% 40%

Traceable fixed expenses $268,000 $320,000 $191,000

1. Segmented Income Statement for the most recent month

Division East Central West Total

Sales $422,000 $650,000 $580,000 $1,652,000

Variable expenses 227,880 169,000 232,000 628,880

Contribution margin $194,120 $481,000 $348,000 $1,023,120

Traceable fixed expenses $268,000 $320,000 $191,000 779,000

Common fixed expenses 346,000

Net operating income (loss) $(73,880) $161,000 $157,000 $(101,880)

Segmented Income Statement for the most recent month

Division East Central West Total

Sales $422,000 $650,000 $678,600 $1,750,600

Variable expenses 227,880 169,000 232,000 628,880

Contribution margin $194,120 $481,000 $446,600 $1,121,720

Traceable fixed expenses $268,000 $320,000 $220,000 808,000

Common fixed expenses 346,000

Net operating income (loss) $(73,880) $161,000 $226,600 $(32,280)

$(101,880)

$(32,280)

$69,600

4 0

3 years ago

HURRY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Rainbow [258]

Answer:

True

Explanation:

The workplace refers to the place where an activity is carried out for the purpose of a monetary return. Each workplace is made up of different people, maintaining different dynamics. This way, every workplace is different. Even though it is standardized, the people who make up the place will give the workplace different dynamics, differentiating them.

8 0

4 years ago

Read 2 more answers

Freddie's Food Service uses QuickBooks Desktop. They do not track or sell inventory. They have regular customers that they want

azamat

Answer:

Customize reports

Review recurring transactions

Set up and implement an online bill pay service

Explanation:

Considering the situation described above, after converting to QuickBooks Online, the 3 setup and customization steps that are appropriate for this client are the following:

1. Customize reports: this includes forms and reports and, if possible to memorize reports.

2. Review recurring transactions: this is to restore desktop QuickBooks memorized transactions.

3. Set up and implement an online bill pay service: this is done either through Intuit Online Payroll or QBOP.

4 0

3 years ago

Assume the weekly payroll of the Abbott Company is $5,000. December 31, the end of the year, falls on a Wednesday and Abbott wil

Crank

Answer:

Salary Expense A/c Dr. $3,000

To Salary Payable A/c $3,000

Since salary will be paid on Friday therefore, liability is recorded as salary payable.

Explanation:

As for the provided details,

The working week consists of 5 working days.

Thus, salary expense will be allocated to these 5 working days only. As the salary expense for a week = $5,000

That means salary expense for a day = $5,000/5 = $1,000 for each day.

Now, the financial year ends on December 31 which is Wednesday.

That means three days, of the working week, fall in the financial year.

Therefore, salary expense for the year will be = $1,000 $\times$ 3 = $3,000

Thus, entry for this will be:

Salary Expense A/c Dr. $3,000

To Salary Payable A/c $3,000

Since salary will be paid on Friday therefore, liability is recorded as salary payable.

3 0

3 years ago

The horizontal aggregation of the individual labor supply curves for workers in a given location is known as the

Naddika [18.5K]

Answer:

market supply of labor

Explanation:

The description provided is for a term known as the market supply of labor. In the context of economics, this term refers to the number of individual workers of a specific trait and with a specific skill level who supply their labor for varied prices. When dividing this by type of work it is the horizontal summation of the individuals' labor supply curves as can be seen in the graph shown attached.

7 0

4 years ago