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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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8_murik_8 [283]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The Nelson Company's radio division currently is purchasing transistors from the Charlotte Co. for $3.50 each. The total number of transistors needed is 8,000 per month. Nelson Company's electronics division can produce the transistors for a cost of $4.00 each and they have plenty of capacity to manufacture the units. The $4 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs.

Because there is unused capacity, we will not have into account the fixed costs.

Unitary cost= $3.25

It is more convenient to produce in house. The indifference price is $3.50.

6 0
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Which is the primary reason to issue stock?A.To help investors earn higherrate of return B. To rise money to grow the company C.
tatyana61 [14]
B. To raise money to a grow a company. 

Stock is equity in a company that is used to help fund the expenses of a company, particularly when they are looking to grow beyond their current revenue sources. It is most useful when a company anticipates growing its revenues or decreasing its expenses through using this new capital in order to deliver a positive return for its equity investors who hold the stock certificates.
4 0
3 years ago
The two types of distribution channels are direct and ________________.
Umnica [9.8K]
The answer is (Indirect).
8 0
3 years ago
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The marketing team of a regional airline company plans to launch a new marketing campaign to draw more customers to its flights.
MrMuchimi

Explanation:

<em><u>1</u></em><em><u>.</u></em><em><u> </u></em><em><u>advertising</u></em><em><u> </u></em>

<em><u>2</u></em><em><u>.</u></em><em><u> </u></em><em><u>distribution</u></em><em><u> </u></em>

<em><u>3</u></em><em><u>.</u></em><em><u> </u></em><em><u>well</u></em><em><u> </u></em><em><u>crafted</u></em>

4 0
3 years ago
Mills Corporation acquired as a long-term investment $290 million of 8% bonds, dated July 1, on July 1, 2021. Company management
kow [346]

Answer:

Journal Entries are given below

Explanation:

                        Mills Corporation-journal Entries    

Date      Particulars                    Debit (In Miln)         Credit (in Mln)

01-Jul-21  Bond Investment       $290.00  

 Investment premium                     $50.00  

 Cash                                                                                $340.00  

Investment recorded

31-Dec-21 Cash     ($290 * 8% * 6/12) $11.60  

               Premium bond investment                                   $1.40  

             Interest revenue ($340*6%*6/12)                          $10.20  

Revenue recognized for bond interest and amortization of discount.

31-Dec-21  Unrealized holding gain or loss  $8.60 

         Fair value adjustment ($340 - $330 - $1.40)              $8.60  

investment recorded at fair value.

02-Jan-19 Fair value adjustment Dr $8.60  

                Reclassification adjustment -                              $8.60  

Fair value adjustment at the time of sale

02-Jan-19 Cash                                     $290.00  

         Loss on sale of investment        $48.60

                bond investment premium                               $48.60  

         Investment in Bond                                                 $290.00

Sale of investment.  

3 0
3 years ago
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