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kvv77 [185]
2 years ago
7

Companies generate income from their "regular" operations and from things like interest on securities they hold, which is called

non-operating income. Mitel Metals recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges and no non-operating income. It had issued $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. What was the firm's operating income, or EBIT?
$1,100

$1,200

$1,300

$1,400

$1,500
Business
1 answer:
mylen [45]2 years ago
6 0

Answer:

$1,500

Explanation:

The computation of the firm operating income is shown below:

= Sales - operating cost other than depreciation - depreciation expenses

= $9,000 - $6,000 - $1,500

= $1,500

We simply deduct the operating cost and the depreciation expenses from the sales revenue amount to find out the earnings before income and taxes (EBIT) or firm operating income

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Fill in the missing amounts.
aleksandrvk [35]

<u>Solution</u>

                                                         Yoste Company Noone Company

Sales revenue($100,000 + $5,000)             $90,000      $105,000

Sales returns and allowances                        ($6,000)         ($5,000)

Net sales                                                         $84,000   $100,000

Cost of goods sold($100,000 - $40,000)          ($58,000) ($60,000)

Gross profit($84,000 - $58,000)                         $26,000            $40,000

Operating expenses($40,000 - $17,000)         ($14,380)           ($23,000)

Net income($26,000 - $14,380)                          $11,620          $17,000

  • Net Income divide by Net Sales = Profit Margin Ratio
  • Gross Profit divide by Net Sales = Gross Profit Rate

<u>Yoste Company : </u>

Profit Margin Ratio = $11,620 divide by $84,000 = 13.83%

Gross Profit Rate = $26,000 divide by $84,000 = 30.95%

<u>Noone Company:</u>

Profit Margin Ratio = $17,000 divide by $100,000 = 17%

Gross Profit Rate = $40,000 divide by $100,000 = 40%

6 0
3 years ago
Assume the marginal propensity to consume is 0. 8. How will a decrease in taxes of $100 billion and a decrease in government spe
lisabon 2012 [21]

Aggregate demand will decrease by $900 billion.

The overall demand for finished goods and services in an economy at a certain period is known as aggregate demand (AD) or domestic final demand (DFD) in the field of macroeconomics. Effective demand is a common name for it, however other times this term is used to make a distinction. This is a country's demand for its gross domestic output. It details the volume of goods and services that will be bought at every price point. The aggregate demand is made up of investment, corporate and governmental expenditures, consumer spending, and net exports. Real output is represented on the horizontal axis and the price level is plotted on the vertical axis to represent the aggregate demand curve. Although it is presumed to be downward sloping, the Sonnenschein-Mantel-Debreu findings demonstrate that the curve's slope

To know more about aggregate demand refer to brainly.com/question/24777291

#SPJ4

3 0
1 year ago
Which of following is a TRUE statement about inventory within a continuous review system?
garri49 [273]

Answer:

c. When ordering or setup costs increase, Economic Order Quantity increases

Explanation:

In inventory there are two types of review systems used to replenish stock, the periodic inventory and continuous inventory.

Continuous inventory involves ordering the same quantity of a good in each order. However the rate at which goods are replenished varies based on monitoring of level of goods. Orders are made when inventory gets to a certain level.

In this instance when there is an increase in ordering or setup there needs to be allocation of a higher amount for orders. The additional cost is added to the economic order quantity

5 0
3 years ago
What is public debt?
Makovka662 [10]
D. government total outstanding debt
A. A surplus
8 0
3 years ago
EB9.
madreJ [45]

Answer:

Amount of inventory transferred=$197,600

Amount of inventory in work in process=$39,900

Explanation:

Amount of inventory transferred=Number of units*cost per unit

cost per unit= material cost per unit+ conversion cost per unit

                     =$9+$4

                     =$13

Amount of inventory transferred=15,200*13=$197,600

Amount of inventory in work in process=3,500*9*100%+3,500*4*60%

                                                                 =$39,900

4 0
3 years ago
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