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almond37 [142]
3 years ago
9

Michael’s is considering a project that has projected sales of 4,200 units ± 5 percent, a sales price per unit of $50 ± 4 percen

t, variable costs per unit of $25 ± 5 percent, and fixed costs per year of $45,000 ± 3 percent. The depreciation expense is $11,000 per year and the tax rate is 33 percent. What is the annual net income under the best case scenario?
Business
1 answer:
julsineya [31]3 years ago
4 0

Answer:

annual net income is $23077.25

Explanation:

Given data:

sales volume = 4200 units

selling price/units $50

variable cost/units $25

fixed cost is $45000

Total sales unit = 4200 + 5\% \times 4200 = 4410 units

selling price/unit = $50 + 4\%\times $50 = $52

variable cost/unit = $25- 5\%\times 25 = $23.75

fixed cost  = 45000 - 3\%\times 45000 = $43650

sales  =4410 \times 52 = $229320.00

variable cost  = 4410 \times 23.75 = 104737.5

difference = 229320 - 104737 = 124583

fixed cost = $43650

depreciation exchange = $11000

so total income prior to tax = 124583 - (43650 + 11000) =$ 69932.5

tax rate is 33%

so total income after tax is = 69932.5 \times .33 = $23077.725

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Company X had net income of $200,000 in the year 2016. At the beginning of 2016, there were 500,000 shares of outstanding common
EleoNora [17]

Answer:

Basic earning per share $0.21 per share

Explanation:

Basic Earning per share = ( Net Income - Preferred stock dividend ) / Weighted Average outstanding shares

Basic Earning per share = ( $200,000 - $50,000 ) / 700,000

Basic Earning per share = $150,000 / 700,000

Basic Earning per share = $0.2143 / share

Weighted average Outstanding shares = 500,000 + 200,000

Weighted average Outstanding shares = 700,000 shares

5 0
3 years ago
What are the current asset financing strategies that firms adopt? Suppose a firm wants to take advantage of an upward-sloping yi
Vladimir [108]

Answer:

UNTUU HULLUM

Overfishing occurs when more fish are removed from an ecosystem than can be maintained by the population,

Overfishing can lead to significant population declines in economically important species. The passage describes

additional impacts of overfishing on populations.

pressure affects

salmon fishery of

and 1970s, pink

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ihile allowing

nd 1974, the

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approximately

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lower growth rates

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generation.

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8 0
3 years ago
Houpe Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Sell
jarptica [38.1K]

Answer:

Effect on income= -$2,100

Explanation:

Giving the following information:

Contribution margin $ 98

Increase in variable cost= $5

Increase in sales= 300 units

<u>To determine the effect on income, we need to use the following formula:</u>

Effect on income= increase in contribution margin for new sales - increase in variable costs

Effect on income= 300*93 - 6,000*5

Effect on income= -$2,100

3 0
2 years ago
As a medium-sized grocery retailer, your marketing and merchandising teams find themselves at a constant disadvantage when negot
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Hence proved hope it will help you

4 0
3 years ago
Assume that you are a loan officer of a bank. A local church is seeking a $4 million, 20-year loan to construct a new classroom b
n200080 [17]

Answer:

Explanation:

a.

There is little information on how funds are used or how much money is spent to manage the church. The financial statements have been prepared incorrectly.

Interpretation:

While drafting the financial accounts, the church committed many errors. The church's revenue is equivalent to its daily operations operating expenditures. They have approximately $3 million in funding assets that they do not owe any money on.  

It may be deduced that the church is attempting to preserve asymmetric information, and therefore it will be better to justify its sources of income and use of money in order to determine whether they can or they cannot pay the debt.

b.

The revenue from various channels must be detailed in the yearly report so that the loan officer may make an informed judgment.

Interpretation:

Since payments and contributions account for 90% of revenue and revenue from other sources accounts for 10%, it's surprising how the church earns money in other ways as stated on the income statement. As a result, it's important to understand what other potential revenue streams the church has before approving the loan.

c.

The officer in charge of the loan should check the church's book records to make sure and guarantee that there are no outstanding loans. This situation necessitates a thorough examination and assessment.

Interpretation:

The church has $3 million worth of equipment. The church's expenses, on the other hand, are equivalent to the church's income. As a result, it's unclear how the church acquired the equipment without taking out a loan. As a result, the church must be urged to produce a full breakdown of its expenses, which may be thoroughly and fully studied to see whether there are any financing charges that the church is attempting to hide in its yearly reports.

d.

There is no direct or primary source of income for the church. It solely makes money from charity donations.

Interpretation:

The church's only sources of income are fundraisers and charitable donations. It also doesn't possess any significant revenue streams. Because the church is attempting to conceal numerous possible pieces of information, this may be a case of micro-management by the proprietors, and so these issues should be considered by the officer in charge of the loan before accepting the loan.

8 0
3 years ago
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