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
Bingel [31]
3 years ago
10

Kreter, Inc. earned net income of $300,000 last year. This year it wants to earn net income of $450,000. The company's fixed cos

ts are expected to be $300,000, and variable costs are expected to be 70% of sales. Determine the required sales to meet the target net income of $450,000 using the mathematical equation.
Business
1 answer:
Minchanka [31]3 years ago
8 0

Answer:

sales is $2,500,000

Explanation:

The target sales for the company to achieve a net income of $450,000 in the current year equals the net income plus variable cost plus the fixed costs.

To understand this better,let us use the net income formula:

net income=sales-variable costs-fixed costs

by changing the subject of the formula,we the formula for sales:

sales=net income+variable costs+fixed costs

variable costs=sales*70%=0.7 sales

sales=$450,000+$300,000+0.7 sales

sales-0.7 sales=$750,000

0.3 sales=$750,000

sales=$750,000/0.3=$2,500,000

You might be interested in
A neurobiologist explains to his students that the human nervous system is analogous to electrical circuits in homes. if the cir
Kazeer [188]
Myelin sheath myelin sheath myelin sheath myelin sheath<span>
</span>


7 0
3 years ago
Which of the following is a drawback of a push strategy?
Gnom [1K]

Answer:

i think it would most like;y be c

Explanation:

3 0
3 years ago
The rules governing when a sale is a sale when the product is _____and _____; the buyer can cancel prior to that.
zhuklara [117]

Basically, the rule of sales contract recognizes that sales is done when the product is negotiated on and <u>paid for</u>, and thus, the the buyer can cancel prior to that.

In the contract on sales, a sale formally becomes a sale when a party gives something to another in exchange for money.

  • The consideration (Premium/Sales cost) is the main factor that makes a sales contract valid and legal.

Hence, the rule of sales contract recognizes that sales is done when the product is negotiated on and <u>paid for</u>, and thus, the the buyer can cancel prior to that.

Read more about sales contract:

<em>brainly.com/question/17179342</em>

6 0
2 years ago
Wolverine, Inc. began operations on January 1 of the current year with a $12,400 cash balance. 45% of sales are collected in the
steposvetlana [31]

Answer:

$7,700 increase

Explanation:

We can determine the change in Wolverine's cash balance by deducting the cash disbursement and operating expenses from the cash receipts.\

Change in cash balance = Cash receipts - Cash disbursement - Operating expense

Change in cash balance = $48,000 - $33,800 -$6,500

Change in cash balance = $7,700

WORKING:

<u>Cash Receipts</u>

Sales

February ( 59,000 x 45%)            $26,550

January ( 39,000 x 55%)              $21,450  

Total                                               $48,000

<u>Cash disbursement</u>

Purchases

February ( 44,000 x 15%)            $6,600

January ( 32,000 x 85%)             $27,200  

Total                                              $33,800

<u>Operating expenses </u>

Incurred                                        $9,400

Depreciation                                ($2,900)

Net                                                 $6,500

7 0
3 years ago
Barney decides to quit his job as a corporate accountant, which pays $10 890 a month, and goes into business for himself as a ce
mash [69]

Answer:

a. Barney's monthly explicit costs: $161;

b. Barney's monthly implicit costs: $11,816;

c. Barney's monthly economic costs: $11,977

Explanation:

a.

Barney's monthly explicit costs include any costs that he actually paid extra every month as the result from running his business including: cost of office supplies + cost of electricity bill = $71 + $90 = $161

b.

Barney's monthly implicit costs include any cost that he does not actually pay extra, yet he has to sacrifice these income as the results of running his business which includes: Cost related to his salary sacrifice + Cost related to his apartment rental = 10,890 + 926 = $11,816

c. Barney's monthly economic costs = Barney's monthly explicit costs + Barney's monthly implicit costs = $11,977

7 0
3 years ago
Read 2 more answers
Other questions:
  • When a company is using the direct​ write-off method, and an account is written​ off, the journal entry consists of a​ ________.
    8·1 answer
  • Paige Company estimates that unit sales will be 10,300 in quarter 1, 12,600 in quarter 2, 14,600 in quarter 3, and 18,800 in qua
    9·2 answers
  • You can assume that all fluids you will reason about in this course are incompressible. what does incompressible mean?
    14·1 answer
  • Who is the register general of c.a.c​
    9·1 answer
  • As an MNC (multinational corporation) seeks to balance and honor the ethical standards of both the home and host countries, conf
    13·1 answer
  • Bristle Corporation acquired 75 percent of Silver Corporation's common stock on December 31, 20X8, for $300,000. The fair value
    6·1 answer
  • A car dealership gives another company a consumer's financial records without notifying the consumer. Which regulatory act did t
    11·2 answers
  • Normally you will see US Labor Productivity Increasing at an annual rate of around 6%. In reading the book you should see that i
    8·1 answer
  • What are the essential elements for a commodity to be rich in economics.​
    6·1 answer
  • For investors, changes made to the tax code by the government are known as a form of:______.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!