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masha68 [24]
3 years ago
6

Gulph Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fix

ed costs $60,000, and net income $20,000. If Gulph increases the selling price of hammers by 10% on June 1, then ________ hammers will have to be sold in June to maintain the same level of net income.
Business
1 answer:
Nezavi [6.7K]3 years ago
4 0

Answer:

Number of units= 4,000 units

Explanation:

Giving the following information:

Sales $200,000

variable costs $120,000

fixed costs $60,000

net income $20,000.

We have to maintain a net income of $20,000.

First, we will calculate the selling price per unit and the unitary variable cost:

Selling price= 200,000/5,000= $40 per unit

Variable cost per unit= 120,000/5,000= $24 per unit

New selling price:

Selling price= $44

Contribution margin per unit= 44 - 24= $20

Now, we have to find the total contribution margin required:

Contribution margin required= net operating income + fixed costs

Contribution margin required= 20,000 + 60,000= 80,000

Number of units= total contribution margin/ unitary contribution margin

Number of units= 80,000/20= 4,000 units

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Stolb23 [73]

Answer:

Matching transactions to the journal in which they would be entered:

Transactions                                                           Journal Type

1. Recognized depreciation on the building         General Journal

2. Journalized the adjusting entry for supplies

 used during the period                                       General Journal

3. Closed the revenue account at the end

of the period                                                         General Journal

4. Received cash from the bank in exchange

for a note payable                                                Cash Receipts Journal

5. Withdrew cash for personal use (by owner)   Cash Payments Journal

Explanation:

Revenue journal records revenue transactions.

Cash receipts journal records all cash receipts.

Purchases journal records all purchases on account.

Cash payments journal records all cash payments.

General journal is used for all transactions, especially those that cannot be recorded in any of the other specialized journals.

3 0
2 years ago
Cabell Products is a division of a major corporation. Last year the division had total sales of $28,540,000, net operating incom
natulia [17]

Answer:

9.1%

Explanation:

With regards to the above, margin is computed as;

Margin = (Net operating income ÷ Sales) × 100

Given that:

Net operating income = $2,597,140

Sales = $28,540,000

Margin = ($2,597,140 ÷ $28,540,000) × 100

Margin = 9.1%

3 0
2 years ago
Johanna, a company manager, needs to keep track of how many days Each employee has worked from start date to the current date Jo
kotykmax [81]

Answer:

yes

Explanation:

because its right

3 0
3 years ago
Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 790,000 units are expecte
Mazyrski [523]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

790,000 units are expected to be produced taking 0.75 machine hours each.

<u>We weren't provided with enough information to solve the requirement. But, I will give the formulas necessary to guide an answer and a small example.</u>

<u>First, we need to calculate the total amount of machine-hours required:</u>

Total machine hours= 790,000*0.75= 592,500 hours.

Let us suppose that the estimated manufacturing overhead is $850,000.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 850,000/592,500= $1.44 per machine hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.44*0.75 hours= $1.08 per unit

5 0
3 years ago
Zelda owns a 60 percent general interest in YZ Partnership. At the beginning of 2018, the adjusted basis in her YZ interest was
strojnjashka [21]

Explanation:

Total loss the company did in was 210,000

Amount of loss going to Zelda's head would be

= (210,000) * 60%

= 126,000

Earnings share for Zelda in 2018

14,600 * 60% = 8760

6,200 * 60% = 3720

And 95,000

Zelda’s adjusted basis in her YZ interest before loss deduction  in 2018 would be

= 95,000 + 8760 + 3720

= 107,480.

Zelda’s adjusted basis in her YZ interest at the end of 2018 after loss deduction would be zero or nill

5 0
3 years ago
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