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
sukhopar [10]
3 years ago
6

A chemical company spent $ 530 comma 000 to produce 150 comma 000 gallons of a chemical that can be sold for $ 5.00 per gallon.

This chemical can be further processed into a weed killer that can be sold for $ 7.20 per gallon. It will cost $ 260 comma 000 to process the chemical into the weed killer. Which of the following is​ true A) If the company decides to process it further, it will increase operating income$578,000
B) If the company decides to process it further, it will increase operating income $390,000

C) If the company decides to process it further, it will decrease operating income by $1,380,000

D) To maximize operating income, the company should continue to sell the chemical as is.
Business
1 answer:
solmaris [256]3 years ago
5 0

Answer:

If the company decides to process it further, it will increase operating income $68,000

Explanation:

Selling the chemical on processing,

the Sales will be = Gallons of chemical produce × Selling price per gallon

                            = 150,000 × $5

                            = $750,000

Cost of Processing the chemical = $530,000

Operating Income on selling the chemical:

= Sales -  Cost of Processing the chemical

= $750,000 - $530,000

= $220,000

Total cost incurred to process the chemical into a weed killer:

=  Cost of Processing the chemical +

= $532000 + $260,000

= $792,000

Sales of 150,000 gallons of weed killer:

= Selling price per gallon × Chemical produce

= $7.20 × 150,000 gallons

= $1,080,000

Operating income on processing to weed killer:

= Sales of 150,000 gallons of weed killer - Total cost incurred to process the chemical into a weed killer

= $1,080,000  - $792,000

= $288,000

So, If the company decides to process it further, it will increase operating income by:

= Operating income on processing to weed killer - Operating Income on selling the chemical

= $288,000 - $220,000

= $68,000

You might be interested in
A local business woman borrows $14,000.00 at $299.70 per month for 62 months, how much total
eduard
If you multiply $299.70x 62- 14,000months you get = 4,581.4 so yeah
4 0
3 years ago
The current ratio includes at the of the following except :
Umnica [9.8K]

Answer: B i believe

Explanation:

7 0
3 years ago
Read 2 more answers
During the current year, assets increased from $11,000 to $19,000, and liabilities decreased from $9,000 to $7,500. If no additi
garik1379 [7]

Answer:

$34,500

Explanation:

Calculation to determine total revenues for the year

Using this formula

Total revenues=Increase in Assets+Decreased in liabilities+Dividends+Expenses

Let plug in the formula

Total revenues=($11,000-$19,000)+($9,000-$7,500)+$4,000+$21,000

Total revenues=$8,000+$1,500+$4,000+$21,000

Total revenues=$34,500

Therefore total revenues for the year is $34,500

6 0
3 years ago
A vendor sells hot dogs at $17.00 /piece. For every hot dog he spends $11.23 in the raw material. Additionally he spends $0.90 f
Gemiola [76]

Answer: $4.87

Explanation:

The question is asking for the Contribution margin which is the amount left of the selling price after the variable costs have been deducted.

Contribution margin = Selling price - variable costs

= Selling price - Raw materials - packing costs

= 17 - 11.23 - 0.90

= $4.87

8 0
3 years ago
Give examples of how we do not recognize people as having these rights but make them conditional on success in the marketplace.
Helen [10]

Answer:

Thomas Edison

Explanation:

Thomas Edison early life was very normal. He was born in a poor family. His mother was a school teacher. Thomas Edison did not get recognition until he was successful in inventing the bulb. He did many experiment which failed and no one supported him during this era. He continued his hard work and finally his one of experiment became successful and he invented a bulb. The world then recognized his efforts and made him a hero. His recognition was only based on the success of his experiment and the marketplace.

3 0
2 years ago
Other questions:
  • Look at the table the utility of macaroni and cheese. carmen loves macaroni and cheese for thanksgiving. carmen's marginal utili
    15·1 answer
  • Discuss the reasons due to which cash book and passbook balances may not match. Is there a method to address the issues related
    12·1 answer
  • What government organization formed to enforce antitrust laws and to make sure the interests of small businesses were protected
    13·2 answers
  • "how does an investor earn money by buying bonds at a discount"
    9·1 answer
  • Digitec Company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make IT avai
    8·1 answer
  • Which indicators do economists use to determine the state of the economy? Check all that apply.
    9·2 answers
  • The short-run effects of an increase in the expected price level include a. a lower level of output and a lower price level. b.
    14·1 answer
  • A convertible preferred stock is convertible at $10, pays a 4% annual dividend, is callable at $110, and is trading at a current
    10·1 answer
  • Calculating Lower-of-Cost-or-Net Realizable Value
    7·1 answer
  • Removing stressors before they can cause stress would be considered what type of stress reduction strategy?.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!