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
dybincka [34]
3 years ago
6

A construction company entered into a fixed-price contract to build an office building for $32 million. Construction costs incur

red during the first year were $9 million and estimated costs to complete at the end of the year were $21 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract? (Enter your answer in whole dollars.)
Business
1 answer:
Delicious77 [7]3 years ago
8 0

Answer:

company gained a gross profit of $2 million

Explanation:

Data provided in the question;

Contract price to build an office = $32 million

Construction costs incurred during the first year = $9 million

Estimated costs to complete at the end of the year = $21 million

Therefore,

Total cost incurred to complete the construction of the office at the end of the first  year

=  Construction costs incurred during the first year + Estimated costs to complete at the end of the year

= $9 million + $21 million

= $30 million

Thus,

The revenue generated by the company = Contract price - cost incurred

= $32 million - $30 million

= $2 million

since the revenue is positive, hence the company gained a gross profit of $2 million

You might be interested in
Being promoted is likely to change your priorities because you will have _______. a. to begin dressing and acting much more form
frutty [35]

The correct option is b. new responsibilities to learn and people will expect much from you.

Getting promoted is most likely to cause you to reevaluate your priorities as you will have more obligations and higher expectations.

<h3>What is job promotion?</h3>

Promotion in the context of a career means raising a worker's position or rank within a hierarchical structure. Promotion in the context of marketing denotes a distinct form of advancement.

The term "promotion" is used in a variety of settings; two of the most common ones are when talking to a career promotion and when discussing the marketing strategy of promoting a product.

Some key features of promotion are-

  • An employee who has demonstrated remarkable performance or who has acquired the required skills and knowledge to take on more responsibility at work is typically given a job promotion.
  • In the latter scenario, the worker might have to put in a certain number of hours with the organization before becoming qualified for a promotion.
  • For instance, a person who starts out as an analyst at an investment bank might need to serve three years in the this capacity before being given consideration for promotion to a coordinate and control.
  • A promotion may come with increased perks and management control over other employees in addition to a pay raise.

To know more about promotion, here

brainly.com/question/20317314

#SPJ4

4 0
1 year ago
Which behaviors might lead someone to have a low credit score?
lara [203]
IF they spend more than they can afford

If they cannot pay back their loans at all

If they cannot pay back their loans on time

hope this helps
8 0
3 years ago
Read 2 more answers
2. Describe one long-term goal that you have and at least two things you will need to do in order to accomplish that goal.
Artist 52 [7]

Answer:

be a music producer

Explanation:

3 0
3 years ago
Brunette Company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $180,000. Th
diamong [38]

Answer:

No,  as the net present value comes in negative

Explanation:

As we know that

Net present value = Present value of cash inflows - Initial investment

where,

Present value os $163,000

And, the initial investment is $180,000

Now placing these values to the above formula

So, the net present value is

= $163,000 - $180,000

= -$17,000

Therefore the company should not accept the project as net present value is in negative that is -$17,000

6 0
3 years ago
Soprano Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run
Nuetrik [128]

Answer:

$850,000

Explanation:

Total Hours of Department 1=$80,000+$90,000

=$170,000/$200,000*1000,0000

8 0
3 years ago
Other questions:
  • In a financial statement audit performed following AICPA Professional Standards, how frequently must an auditor test operating e
    8·1 answer
  • Ken purchases a box of cereal for $2.89, cheese for $5.04, lettuce for $1.93, and milk for $1.99. he has $15 with him. which est
    5·1 answer
  • Microeconomics focuses on A. inflation and growth in our overall economy. B. decisions made by individual households and firms.
    9·1 answer
  • Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s management predicts that 6,1
    12·1 answer
  • If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reportin
    9·1 answer
  • The guidance for having infant sleep on their back to reduce the incidence of SIDS has a grade of A. Group of answer choices Pro
    6·1 answer
  • Good Y is a normal good. If the average income of those who buy good Y rises, the _____________ curve for good Y will shift ____
    8·1 answer
  • Alumbat Corporation has $800,000 in debt outstanding, and pays an interest rate of 10 percent annually on its bank loan. Alumbat
    8·1 answer
  • 3. The media consumer who gets news and information in a crossover fashion, from a variety of sources is known as a(n) _________
    9·1 answer
  • A business-level strategy is: a. a marketing and positioning program designed to explain a business to its customers. b. an inte
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!