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Sphinxa [80]
3 years ago
9

During March, Adams Company had sales of $5,000,000, variable expenses of $3,000,000, and fixed expenses of $1,500,000. Assume t

hat cost behavior and unit selling price remain unchanged during April. In order for the company to realize net operating income of $300,000 for April, sales would have to be: Ans: a. $3,750,000. b. $4,050,000. c. $4,500,000. d. $4,800,000.
Business
1 answer:
ad-work [718]3 years ago
4 0

Answer:

Option (c) is correct.

Explanation:

Variable cost as a percent of sales:  

= (Variable expenses ÷ Sales) × 100

= ($3,000,000 ÷ $5,000,000) × 100  

= 60%

If Sales = X

then Variable cost is 0.6X (i.e. 60% of Sales)

Sales - Variable cost - fixed expenses = net operating income

X - 0.6X - 1,500,000 = 300,000

0.4X = 300000 + 1500000 = 1800000

X = 1800000 ÷ 0.4

  = 4,500,000

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Hence the answer shall be Allowance for doubtful debts accounts


6 0
4 years ago
BusCorp wants to introduce a new procedure to improve how customer requests are handled. This change will require employees to b
serg [7]

Answer:

E)Employee involvement

Explanation:

Employee involvement can be regarded as taking part of employees in decision-making process that are crucial to the organization, so that the goals of the organization are met. When employees there is involvement of employees in making decisions, there will be some professional as well as personal stake gained by the employee in the organization as well as the organization overall success. As a result of this there would be increased productivity in part of employees because they will take part actively in various aspects that will bring about success of the firm.

8 0
3 years ago
Mugs Café sells 1000 cups of coffee per week if it does not advertise. For every $50 spent in advertising per week, it sells an
Zepler [3.9K]

Answer:

1,300 cups

Explanation:

This can be solved as follows:

Question "a"

y = a + bx ................................................. (1)

Where,

y = number of cups of coffee sold per week

x = number of times b is multiplied based on the amount spent on adverts

amount spent on advertising per week

a = fixed cups of coffee per week without advertising = 1,000 cups

b = extra quantity sold when $50 is spent on advertisement = 150 cups

If the available figures above are substituted into equation (1), we will have the linear function as follows:

y = 1000 + 150x ................................................. (2)

Equation (2) is the linear function required.

Question "b"

If $100 per week is spent on advertising, we can get X by dividing it by $50 as follows:

x = $100 ÷ $50 = 2

Substituting 2 for x in equation (2), we can calculate y as follows:

y = 1000 + 150(2)

  = 1000 + 300

  = 1,300 cups.

Therefore, 1,300 cups of coffee are expected to be sold per week by Mugs Café if it spends $100 per week on advertising.

I wish you the best.

8 0
3 years ago
Can someone help . i know I'm dumb:) x-5=7​
love history [14]

Answer:

Hey Army

Nice to meet you:)

your answer is 12

as x-5=7

so x=7+5

x is 12

Stream life goes on and Dynamite. :)

4 0
3 years ago
Read 2 more answers
What is the Federal Reserve best known for?
Jlenok [28]
It is best known for regulating the nation’s money supply
4 0
3 years ago
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