1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
muminat
3 years ago
11

Sandhill Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $

247,000, and fixed costs $98,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 59% of sales. Compute the net income to be earned under each alternative.
Business
1 answer:
spin [16.1K]3 years ago
8 0

Answer:

(1) $132,000

(2) $66,000

Explanation:

Selling price per unit:

= Sales ÷ No. of units

= $400,000 ÷ 5,000

= $80

Variable cost per unit:

= variable cost ÷ No. of units

= $247,000 ÷ 5,000

= $42

Alternative 1:

Contribution margin = Sales - variable cost

                                  = (5,000 × $80 × 1.1) - (5,000 × $42)

                                  = $440,000 - $210,000

                                  = $230,000

Net income = Contribution margin - Fixed cost

                   =  $230,000 - $98,000

                   = $132,000

Alternative 2:

Contribution margin:

= sales - variable cost

= $400,000 - ($400,000 × 59%)

= $400,000 - $236,000

= $164,000

Net income = Contribution margin - Fixed cost

                   =  $164,000 - $98,000

                   = $66,000

You might be interested in
The general description of the job of HR manager includes Multiple Choice providing high-level administrative support by conduct
marin [14]

Answer:

maintaining functions such as employee compensation, recruitment, and personnel policies

Explanation:

5 0
3 years ago
How is granite made i will give brainliest if right ?
IRINA_888 [86]

Answer:

Granite is a light-shaded molten stone with grains adequately huge to be obvious with the independent eye. It structures from the moderate crystallization of magma beneath Earth's surface. Stone is made basically out of quartz and feldspar with minor measures of mica, amphiboles, and different minerals. Granite slabs are gotten from unique locales that are known as quarries. Utilizing incredible machines, a mining organization mines and shoots crude rock out of the quarry. Processing Machines Cut the Slabs. After rock has first been mined out of the earth, it will be in an exceptionally harsh structure.

Explanation:

3 0
3 years ago
2.A company began 2019 with retained earnings of $23.45 million. During the year, it paid four quarterly dividends of 0.25 per s
Naily [24]

Answer: $23.63 million

Explanation:

First and foremost, we can calculate the quarterly common stockholder dividend which will be:

= $0.25 × 1 Million

= $0.25 million

Then, the annual dividend to the common stockholders will be:

= $0.25 million × 4

= $1 million

The quarterly preferred stockholder dividend will be calculated as:

= $0.50 × 0.50 Million

= $0.25 million

We would then multiply $0.25 million by 4 to get the annual dividend attributable to the preferred stockholders which will be:

= $0.25 million × 4

= $1 Million

Total Dividend would then be:

= Annual dividend to common stockholders + Annual dividend to preferred stockholder

= $1 Million + $1 Million

= $2 Million

The value of the retained earnings balance at the end of the year will then be:

= Retained Earnings at the beginning of the year + Net Income – Dividend

= $23.45 + $2.18 - $2.00

= $23.63 million

3 0
3 years ago
Ancho Corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel-based cars. The company real
trasher [3.6K]

Answer:

A) leveraging new core competencies to improve current market position.

Explanation:

As is given in the scenario, the people that the company Ancho is trying to get are <em>potential customers</em> rather than existing, hence they cannot be said to be building new core competencies <em>to protect and extend current market position</em>. That would have been the case if they were trying to keep those that were already customers to the company.

Ancho cannot also be said to be <em>redeploying existing core competencies to compete in future markets </em>because they are actually acquiring new competencies in electric car manufacturing which was not their original line of business.

There is also no case of <em>unlearning existing core competencies </em>because Anchor has deployed existing competencies in developing a hybrid car rather than just an electric one.

Hence Anchor is trying to get new customers while keeping the old ones and has made a car that will appeal to both existing and potential customers to improve current market position.

8 0
3 years ago
Moon Micro is a small manufacturer of servers that currently builds its entire product in Santa Clara, California. As the market
AfilCa [17]

Answer:

Answer for below mentioned points is in the attached image :

Use a decision tree to determine whether Moon should add capacity to its Santa Clara plant or if it should outsource to Molectron. What are some other factors that we have not discussed that would affect this decision?

Explanation:

3 0
3 years ago
Other questions:
  • The Huffington Post generates revenue by providing​ ad-supported content such as​ news, blogs,​ entertainment, and commentaries.
    7·1 answer
  • Jan pays $70 each month for her auto insurance policy. This regular payment is called a : A.) co-pay. B.) deductible. C.) premiu
    8·2 answers
  • The key elements of motivation are​ ________________. A. ​attitude, behavior, and direction B. ​sustainability, cooperation, and
    11·1 answer
  • Suppose your favorite sports team is losing by an insurmountable score. What does the shutdown condition suggest the team should
    10·1 answer
  • Clark’s Landscaping bills customers subject to terms 3/20, n/60.
    7·1 answer
  • Benefits offered to encourage people to make a specific economic decision
    12·2 answers
  • Information collected from online databases is an example of ________ data. A) observationalB) experimentalC) primaryD) secondar
    7·1 answer
  • If a startup pioneers an industry or a new concept within an industry, the name recognition the startup establishes may create a
    8·1 answer
  • The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called _
    13·1 answer
  • Live Trap Corporation received the data below for its rodent cage production unit. OUTPUT INPUT 50,200 cages Production time 625
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!