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
a_sh-v [17]
3 years ago
6

Goldin Corporation currently pays its salesperson a flat salary of $5,000 per month and is considering paying him $20 per unit i

nstead. Sales are currently 200 units per month. Goldin believes the compensation change will increase unit sales by 50%. The current contribution margin is $80 per unit. If the change is implemented, net operating income will:
a. decrease by $1,000
b. decrease by $7,000
c. increase by $7,000
d. increase by $1,000
Business
1 answer:
Naddik [55]3 years ago
6 0

Answer:

The net operating income will c. increase by $7,000

Explanation:

The formula to calculate net operating income  is =

Gross income - Operating expenses

If  Sales are equal to 200 units  and the payment for a salesperson is

a flat salary of $5,000

Gross income = 200  * $80 = $16,000

and

Operating expenses = $5,000

so

Net operating income = $16,000  - $5,000 = $11,000

If  we rise the Sales to 300 units then the payment for the salesperson will be 20$ * 300 = $6,000.

Gross income = 300  * $80 = $24,000

and

Operating expenses = $6,000

so

Net operating income = $24,000 - $6,000 = $18,000

$18,000 -  $11,000 = $7,000

You might be interested in
Which of the following represents the normal sequence in which the below budgets are prepared? a. Sales budget, budgeted balance
zloy xaker [14]

Answer:

c. Sales budget, budgeted income statement, budgeted balance sheet

Explanation:

First, we calculate the sales for the period. It would also calculatethe cash proceeds from sales, which will be useful for the balance sheet.

With that, we can plug sales revenue into the income statement and calcualte the net income.

And with the income statement, we can solve for retained earnings and build up the balance sheet. Among other data

Doing it in any other order, we are going to leave blanks and need to do the next one to fill them. In the proposed orde,r we do not need information from the subsequent budget to complete the previous one, which is good.

6 0
3 years ago
The following may be claimed as a tax deduction except:
zhenek [66]
M9ney spent on household expenses
5 0
3 years ago
A potential benefit of telecommuting is that it _____.
den301095 [7]

the answer is: a. reduces employee turnover

in business, potential benefit refers to the benefit that might or might not occurs depending on the performance that created from a certain decision.

Telecommunication is useful for the employers to communicate with the employees even if they not in close proximity. This allow employees to work at home and have more balance between their personal life and professional life. This balance would increase their comfort level in working with the employer and reduce the employee turnover.

5 0
2 years ago
Read 2 more answers
Which of the following has limited liability for its owners, but passes income through to its investors and avoids double taxati
elena-14-01-66 [18.8K]

The one that has limited liability for its owners, but passes income through to its investors and avoids double taxation is option C. S Corporation. Read below about S Corporation.

<h3>What is S Corporation?</h3>

A variation on the standard corporation model is the S corporation. An S corporation passes its income through to its owners, so that the entity itself does not pay income taxes. The owners report the income on their tax returns, thereby avoiding the double taxation that arises in a regular C corporation.

Therefore, the correct answer is as given above

learn more about S corporation: brainly.com/question/13187927

#SPJ1

The complete question goes thus:

Which of the following has limited liability for its owners, but passes income through to its investors and avoids double taxation

A. C Corporation

B. Partnership

C. S Corporation

D. Types of Business Entities

3 0
1 year ago
State income taxes paid$2,000 Mortgage interest on her personal residence9,000 Points paid on purchase of her personal residence
bija089 [108]

Answer:

The amount Jordan may claim as itemized deductions on her current-year income tax return is $12,900.

Therefore, the correct answer is b.$12,900.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Jordan Johnson is single and has adjusted gross income of $50,000 in the current year. Additional information is as follows:

State income taxes paid $2,000

Mortgage interest on her personal residence 9,000

Points paid on purchase of her personal residence 1,000

Deductible contributions to her IRA 3,000

Uninsured realized casualty loss (in a Federal disaster area) 6,000

Tax preparation fees for her prior year income tax return 400

What amount may Jordan claim as itemized deductions on her current-year income tax return?

a.$12,000

b.$12,900

c.$13,300

d.$15,900

b. $12,900.

Explanation of the answer is now given as follows:

The allowable deduction for personal casualty loss that occurs in a Federal disaster area has a limit to the amount by which it is higher than $100 floor and 10% of AGI which is calculated as follows:

Uninsured realized casualty loss (in a Federal disaster area) - $100 = $6,000 - $100 = $5,900

Deductible uninsured realized personal casualty loss (in a Federal disaster area) = $5,900 - ($50,000 * 10%) = $900

Therefore, we have:

Itemized deductions for the current year = State income taxes paid + Mortgage interest on her personal residence + Points paid on purchase of her personal residence + Deductible uninsured realized personal casualty loss (in a Federal disaster area) = $2,000 + $9,000 + $1,000 + $900 = $12,900

Therefore, the amount Jordan may claim as itemized deductions on her current-year income tax return is $12,900.

The correct answer is b.$12,900.

3 0
2 years ago
Other questions:
  • Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 6 percent. The bond sells for $98
    8·1 answer
  • The term full employment implies an unemployment rate of:
    7·1 answer
  • Peter's Audio Shop has a cost of debt of 7%, a cost of equity of 11%, and a cost of preferred stock of 8%. The firm has 104,000
    12·1 answer
  • Brainliest + points<br><br> What is bond investment?
    6·1 answer
  • Alex Guerin is an artist who sells his work under consignment (he displays his work in local barbershops, and customers purchase
    5·1 answer
  • During a year, Mark’s monthly sales compensation ranged between $15,500 and $20,900 per month and units sold ranged between 1,10
    14·1 answer
  • HELP ASAP PLZ!!!! Who would be most negatively affected if lower price limits were not in place? Explain your answer
    10·1 answer
  • The following information is available for Splish Brothers Corp. for the year ended December 31, 2022.Other revenues and gains 2
    11·1 answer
  • As inventory and property plant and equipment on the balance sheet are consumed, they are reflected: Select one: A. As a revenue
    7·1 answer
  • why might investors prefer stock dividends over cash dividends? a.) if they are seeking flexibility b.) if they are seeking a pr
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!