All categories

3 years ago

Turtle Corporation produces and sells a single product. Data concerning that product appear below:

Business

1 answer:

stealth61 [152]3 years ago

3 0

Answer:

The monthly Net Operating Income would reduce by $100 if additional funds are allocated to Marketing Expenses.

Explanation:

I have attached a screen shot of my workings, give it a look and you will have a better idea of what is going on.

Key Points:

New units to be sold are 7,210.
Variable Expense is calculate as (Sales * Percentage of Variable Expense).
A new Fixed cost of 6,700 for Marketing will be deducted.

I hope I made it very much clear for you. Feel free to ask if you have any confusion.

Thanks!

You might be interested in

Advertising Costs $ 12 comma 000 Indirect Labor 7 comma 000 CEO's Salary 460 comma 000 Direct Labor 54 comma 000 Indirect Mater

sineoko [7]

Answer:

$510,130

Explanation:

Costs can be classified into two categories: Product Costs and Period Costs. Product costs are the manufacturing costs that are incurred in the production of goods and services. Under absorption costing, product costs include direct materials, direct labor, indirect materials, indirect labor, and other factory overhead. These costs are capitalized and expensed out when related goods and services are sold out.

On the other hand, period costs are selling & administrative expenses. These costs are never capitalized and expensed out in the statement of profit or loss as soon as incurred. Examples of period costs are advertisement expenses, depreciation expenses (not related to factory), sales commissions, administrative salaries and wages.

Calculation of Period Costs

Advertising costs $12,000

CEO's salary 460,000

Delivery vehicle depreciation 1,230

Administrative wages and salaries 36,900

Total Period Costs $510,130

4 0

4 years ago

Read 2 more answers

Short term goals are normally supported by long term goals

malfutka [58]

That is very adequate

4 0

4 years ago

Read 2 more answers

I own 75 shares of stock in IBM. What type of business is IBM?

MAVERICK [17]

C. Nonprofits co corporation

7 0

3 years ago

A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold 380,000 Sales revenue $ 2,736,000 Va

KATRIN_1 [288]

Answer:

Break-even point in units= 272,308 units

Explanation:

Giving the following information:

Variable manufacturing expense $ 1,349,000

Variable selling and administrative expense $ 399,000

Total variable cost= 1,748,000

Fixed manufacturing expense $ 336,000

Fixed selling and administrative expense $ 372,000

Total fixed costs= 708,000

First, we need to calculate the unitary selling price and unitary variable cost:

Unitary selling price= 2,736,000/380,000= $7.2

Unitary variable cost= 1,748,000/380,000= $4.6

Now, to calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 708,000 / (7.2 - 4.6)

Break-even point in units= 272,308 units

6 0

3 years ago

halcrow yolles purchased equipment for new highway construction in manitoba canada costing 550000. estimated salvage value at th

timofeeve [1]

Answer:

150,000

Explanation:

Cost of equipment = 550,000

Estimated salvage value = 50,000

Useful life = 5 Years

Straight line method yearly depreciation charge = (550000 - 50000)/5

= 500000/5

= 100000

Using the DDb method, Yearly depreciation = 2 × 100000

= 200000

Book value for year 1 = 550000 - 200000

= 350000

Book value for year 2 = 350000 - 200000

= 150000

Book value for year 2 = 150,000

3 0

4 years ago