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
rewona [7]
2 years ago
12

What is the formula to work out profit

Business
1 answer:
Nitella [24]2 years ago
7 0

The main feature of this lesson is the equation P(x) = R(x) - C(x). Other important equations to remember are as follows: The breakeven point is when revenue equals cost, or when the profit is zero. Maximum profit will occur when marginal revenue equals marginal cost, or when the marginal profit is zero.

You might be interested in
The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.Accounts Debit CreditCash $1
zepelin [54]

Answer:

These can be prepared as shown below:

Explanation:

1. Prepare a statement of stockholder equity for the year ends December 31, 2018, assuming no common stock was issued during 2018.

To do this, the income statement is first prepared by ignoring tax as follows:

Fightin' Blue Hens Corporation

Income Statement

for the year ended December 31, 2018.

Details                                                                    $

Service Revenue                                           300,000

Salaries Expense                                         (200,000)

Rent Expense                                                  (10,000)

Depreciation Expense                                   (20,000)

Interest Expense                                           <u>   (3,000) </u>

Earnings for the year                                   <u>   67,000 </u>

Therefore, we have:

Fightin' Blue Hens Corporation

Statement of Stockholder Equity

for the year ends December 31, 2018

Details                                                                    $

Common stock                                               100,000

Retained Earnings                                           40,000

Earnings for the year                                    <u>   67,000</u>

Stockholder Equity                                      <u> 207,000 </u>

2. Prepare a classified balance sheet as of December 31, 2018.

A balance sheet is a balance sheet that have different classifications suchas fixed assets, current assets and liabilities, long-term liabilities, and stockholder equity. This can be prepared as follows:

Fightin' Blue Hens Corporation

Classified Balance Sheet

for the year ends December 31, 2018

Details                                                          $                   $

<u>Fixed Assets</u>

Equipment                                           200,000

Accumulated Depreciation              <u>   (115,000) </u>    

Net Fixed Assets                                                          85,000  

<u>Current Assets</u>

Cash                                                        10,000

Accounts Receivable                           130,000

Prepaid Rent                                            4,000

Supplies                                               <u>  20,000 </u>

Total current assets                             164,000

<u>Current Liabilities</u>

Accounts Payable                                (10,000)

Salaries Payable                                    (9,000)

Interest Payable                                   <u>  (3,000) </u>

Working capital                                                            142,000

<u>Long-term Liabilities</u>

Notes Payable (due in two years)                              <u> (20,000) </u>

Net Total Assets                                                         <u> 207,000</u>

Financed by:

Common stock                                                              100,000

Retained Earnings                                                          40,000

Earnings for the year                                                   <u>   67,000</u>

Stockholder Equity                                                      <u> 207,000 </u>

Note: When a balance sheet is accurately prepared, the net total assets and the stockholder equity must be equal as above with both equaling $207,000.

6 0
3 years ago
AJ Manufacturing Company incurred $50,000 of fixed product cost and $40,000 of variable product cost during its first year of op
inn [45]

Answer:

Sales= 160,000

COGS= (40,000 + 50,000)= (90,000)

Gross profi= 70,000

Other expenses:

Fixed selling and administrative costs= (16,000)

Variable selling and administrative costs= (13,000)

Net operating income= $41,000

Explanation:

Giving the following information:

$50,000 of the fixed product cost

$40,000 of variable product cost during its first year of operation.

$16,000 of the fixed selling and administrative costs

$13000 of variable selling and administrative costs.

The company sold all of the units it produced for $160,000

Under GAAP requirements, the income statement follows this structure:

Sales Revenue

(Cost of goods sold)

=Gross profit

(Operating expenses)

Income from other Operations

= Earnings before interest and taxes (EBIT)

(interest)

= Earnings before Tax

(Tax)

=Net operating income

In the example:

Sales= 160,000

COGS= (40,000 + 50,000)= (90,000)

Gross profi= 70,000

Other expenses:

Fixed selling and administrative costs= (16,000)

Variable selling and administrative costs= (13,000)

Net operating income= $41,000

7 0
3 years ago
A finance company has a total of $20 million earmarked for homeowner and auto loans. On the average, homeowner loans have a 10%
serg [7]

Answer:

Housing million dollars $1,655.2

Automobile million dollars $413.80

Explanation:

Calculation to determine the total amount of loans of each type

Calculation for HOMEOWNER LOANS

Homeowner loans=$20,000-[(10%*20,000)/(4*12%+10%)]*10%

Homeowner loans=[$20,000-($2,000/48%+10%)]*10%

Homeowner loans=[$20,000-($2,000/58%)]*10%

Homeowner loans=[$20,000-$3,448.3]*10%

Homeowner loans=$16,552*10%

Homeowner loans=$1,655.2

Calculation for AUTO LOANS

Auto Loans=[(10%*20,000)/(4*12%+10%)]*12%

Auto Loans=($2,000/(48%+10%)]*12%

Auto Loans=($2,000/58%)*12%

Auto Loans= $3,448.3*12%

Auto Loans=$413.80

Based on the above calculation Homeowner loans amount of $1,655.2 is 4 times Auto Loans amount of $413.80

Therefore the total amount of loans of each type that Madison should extend to each category in order to maximize its returns are:

Housing million dollars $1,655.2

Automobile million dollars $413.80

3 0
3 years ago
Steven puts aside some of his money for future use. He is a _____ .
gavmur [86]
The answer is A, a saver. 

He is putting money aside for later instead of spending it on anything else
4 0
3 years ago
Read 2 more answers
1. To calculate discretionary money, you ____?
ipn [44]
Discretionary money is the money that you can spend for your non-essentials goods (such as jewelry, nice jacket, etc)

In order to calculate t, you need to : B. calculate the difference between your net income and fixed expenses

hope this helps
5 0
3 years ago
Read 2 more answers
Other questions:
  • Gordon Corporation produced 10,000 digital watches in the current year. Variable costs are $8 per watch. Overhead assigned is $2
    15·1 answer
  • Mass production and the concept of interchangeable parts prompted greater development during the Industrial Revolution.
    13·1 answer
  • In the context of the six sections of the Position Analysis Questionnaire (PAQ), _____ represent the reasoning, decision-making,
    9·1 answer
  • The listing agent received a full price offer that she faxed to the out-of-town seller. The seller signed the faxed copy, and fa
    6·1 answer
  • In​ ________, goals set by top managers flow down through the organization and become subgoals for each organizational area.
    6·1 answer
  • "formalization refers to the extent to which procedures and rules determine the jobs and activities of employees"
    12·1 answer
  • Prepare a classified balance sheet. Assume that $13,600 of the note payable will be paid in 2023.The following items are taken f
    8·1 answer
  • in Illinois Mobile homes are generally considered to wich one a. personal property b. real property c.trade fixture d. fixtures
    9·1 answer
  • The employer mandate of the PPACA requires that :_______
    10·1 answer
  • Carol Beal is the export manager at Gudrun Sjoden USA, a licensed distributor for a Swedish designer. Carol has North America an
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!