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
Average daily demand is 50 units and the standard deviation is 5 units. Lead time is 2 days and the service level is 95%. A peri
Elis [28]

Answer:

475

Explanation:

The computation of the target level that should be set is given below:

= demand per day × (lead time + review period)+ safety stock

where

safety stock is

= z value at service level × standard deviation × √(review period + lead time)

= 1.64 × 5 × √(7 + 2)

= 24.67

Now the target level should be

= 50 × (7 + 2) + 24.67

= 474.67

= 475

7 0
3 years ago
Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm's t
anzhelika [568]

Answer:

8.94%

Explanation:

Firstly, we will need to find total equity and total debt of Harrington Inc inorder to apply the Dupont equation for getting ROE

Harrington's total debt = 15.00 % × $250,000

= $37,500

Harrington's total equity will be; applying accounting equation

Asset = Liabilities + Owner's equity

Owner's equity = Assets - Liabilities

= $250,000 - $37,500

= $212,500

Therefore, using the Dupont equation, we can calculate the ROE as;

(NI/Sales) × (Sales/Total assets) × (Total assets/Total common equity)

= 19,000/325,000 × 325,000 /250,000 × 250,000/212,500

= 8.94%

7 0
3 years ago
Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $
ololo11 [35]
Thank you for posting your question here. I hope the answer helps. 
If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. I think yes, Wang <span>should take the quantity discount.</span>
8 0
3 years ago
Read 2 more answers
At market equilibrium, Group of answer choices quantity demanded equals quantity supplied. surpluses are greater than shortages.
Tom [10]

Answer:

quantity demanded equals quantity supplied

Explanation:

The market equilibrium is the price at which the quantity demanded and the quantity supplied cross each other. The intersection could be made by supply and demand curves.

Therefore, there is a direct relationship between the price and the quantity supplied, while the price and quantity demanded have an inverse relationship.

When the quantity demanded and the quantity supplied are intersect at the price so we called market equilibrium

6 0
3 years ago
Luis refuses to shop at big box stores, preferring to do his shopping locally. He reads in the paper that one of these stores wi
Trava [24]

Answer:

Selective retention.

Explanation:

Selective retention occurs when a person more easily remembers things that are closer to their beliefs, values, and Interests than things that are not.

Luis does not want to do his shopping at big box stores but prefers to shop locally. So when he reads about one of the big box stores (which is not his preference) is doing a big sale next week, he does not remember it because it is not consistent with what he wants. This is an example of selective retention.

7 0
3 years ago
Other questions:
  • ony Manufacturing produces a single product that sells for $ 80. Variable costs per unit equal $ 45. The company expects total f
    15·1 answer
  • If you are interested in general management, the best career cluster for you might be: A: Education and Training. B: Architectur
    10·2 answers
  • If the interest is compounded semiannually, look up on the chart half the rate and twice the years. If the interest is compounde
    9·1 answer
  • Blanton Company wishes to allocate rent expense of $24,000 to its three operating departments, A, B, and C. Assuming the three d
    11·1 answer
  • The cost of to a retailer of a ski patrol backpack used in emergency situations is $84.96. The retailer uses a markup of 40% bas
    9·1 answer
  • There are at least three ways to submit a cover letter to an employer. Which methods are
    5·1 answer
  • The Rasputin Brewery is considering using a public warehouse loan as part of its​ short-term financing. The firm will require a
    9·1 answer
  • The goods a company has available to sell to customers are called
    14·2 answers
  • Bank Sohar declares the profit for the year ended 2019-20. They makes profit:
    5·1 answer
  • If Acme Corporation's current share price is $40 and it has issued 1 million shares of stock, then its market cap is
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!