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Mumz [18]
3 years ago
12

A retail operation has an average gross margin of 35%. If the average monthly sales for the store is $200,000.00, what is the co

st of goods sold?
Business
1 answer:
GarryVolchara [31]3 years ago
8 0

Answer:

COGS= $130,000

Explanation:

Giving the following information:

A retail operation has an average gross margin of 35%.

Sales= $200,000.00

<u>To calculate the cost of goods sold, we need to use the following formula:</u>

Gross margin= sales - COGS

COGS= sales - gross margin

COGS= 200,000 - (200,000*0.35)

COGS= $130,000

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Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha
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Proposal B: 5,770 units

Explanation:

The break-even point is the number of units required for the revenue to equal the total costs.

For proposal A:

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(P-VC)*n-FC = 0\\(24-13)*n-60,000 = 0\\n=5,454.5\ units

For proposal B:

Fixed Costs = $75,000

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(P-VC)*n-FC = 0\\(24-11)*n-75,000 = 0\\n=5,769.2\ units

Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.

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3 years ago
Zang Company had no office supplies on hand at the beginning of the year. During the year, the company purchased $250 worth of o
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3 years ago
Mayo Corp. has estimated that total depreciation expense for the year ending December 31, 2018 will amount to $600,000, and that
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2 years ago
Dome Metals has credit sales of $270,000 yearly with credit terms of net 90 days, which is also the average collection period. A
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Answer:

Net change in income = $8,100

Explanation:

Given:

Current credit sales= $270,000 per year.

Average collection period= 90 days

A 2/15, net 90 means a 20℅ discount if payment is made within 15 days.

Which means new credit terms increase will be

(90/15) * 20℅ = 120℅

We now find the following:

•Revised sales will be = (current sales * new credit terms increase)

= $270,000 * 120℅ = $324,000

•Increase in sales = ( new sales - current sales)

=$324,000 - $270,000 = $54,000

•Profit increase = (profit percent * Increase in sales)

= 15℅ * $54,000 = $8,100

• Average receivable under existing policy =

= $270,000 * (90/360) = $67,500

• Average under new policy =

$325,000 * (15/360) = $13,500

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3 years ago
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