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
Sphinxa [80]
2 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]2 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

You might be interested in
ConsGrough, Inc. has increased its annual common dividend by 3% in each of the years that the company has existed. If you believ
Salsk061 [2.6K]

Answer: $171.67 would be the price of the security

Explanation: This problem relates to dividend growth model, which can be shown as follows :-

=\frac{D_{1}}{P_{0}}+\:G

where'

d1 = expected dividend

p = price

g = growth rate

therefore,

=\frac{\$5\left ( 1+3\% \right )}{P_{0}}+\:3\%

solving this we get

p_0=\$171.67

8 0
3 years ago
The following information is available for Dakota Company: Product 1 Product 2 Sales $1,400,000 $1,800,000 Direct materials (200
xeze [42]

Answer:

$380,000

Explanation:

Particulars                                           Product 1 (Amount)

Sales                                                          $1,400,000

(-) Direct materials                                   ($200,000)

(-) Direct labor                                          ($600,000)

<u>(-) Manufacturing overhead </u>

Batch level ($400,000*20/80)                 ($100,000)

Product line level ($600,000*10/50)       <u>($120,000)</u>

Gross margin                                            <u>$380,000</u>

So, Dakota Company's gross margin for Product 1 using activity based costing is $380,000

6 0
3 years ago
Part U16 is used by Mcvean Corporation to make one of its products. A total of 13,000 units of this part are produced and used e
ad-work [718]

Answer:

Financial disadvantage of 138,600

Explanation:

\left[\begin{array}{cccc}&produce&buy&Differential\\$Purchase&&-447,000&-447,000\\$Avoidable\: Cost&-283,400&0&283,400\\$Unavoidable\: Cost&-114,400&-114,400&0\\$Total Cost&-397,800&-561,400&-163,600\\$additional segment&0&25,000&25,000\\$Net  Effect&-397,800&-536,400&-138,600\\\end{array}\right]

The allocate cost and teh depreciation cost will be unavoidable, so should be considered as a cost for the purchase option

Also the inocme from teh additional segment is only considered for the purchase option

<u>The avoidable cost will be:</u>

Direct Materials

Direct Labors

Variable overhead

Supervisor

Thse cost are zero in the purchase escenario

4 0
3 years ago
In the short run a) a firm does not have sufficient time to change any of the resources it uses. b) a firm does not have suffici
timama [110]

Answer:

c) a firm does not have sufficient time to change the level of use some of its inputs.

Explanation:

The definition of short-run in economics is not a term to be used for a specific certain period of time but it means that the period of time is too short that the firms cannot change the level they are using of some of their inputs or costs. It means they do have fixed costs they cannot change. For example, all machinery installed, a yearly rent paid, electricity or others that the firm cannot change unless there is sufficient time. In a short period of time, it will have those costs anyway. The firm cannot change the level of that input. And it is short run of at least one input. It may be many. But it is not necessary to have all inputs unchanged to consider that period of time as short-run.

However, firms can change level of inputs if they have more time. That is cost the long run. All costs are variable costs when we are in long run.

3 0
3 years ago
In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:
Troyanec [42]

Answer:

$4,469

Explanation:

Calculation for what The adjusted cash balance per the books on January 31 is

Using this formula

Adjusted cash balance = cash balance per books -bank service charges - EFT automatically deducted - NSF Check

Let plug in the formula

Adjusted cash balance= $5325 - $31 -$500 -$325

Adjusted cash balance= $4,469

Therefore The adjusted cash balance per the books on January 31 is $4,469

5 0
3 years ago
Other questions:
  • Your grandfather likes to tell the story about how he started with 50 head of cattle on his ranch and grew the ranch to 1,000 he
    10·1 answer
  • PLEASE HELP!!!!
    8·2 answers
  • Kushman Industries has $40,000 of ending finished goods inventory. If beginning finished goods inventory was $20,000 and cost of
    10·1 answer
  • Securities and investments and banking services are careers associated with which of the following career clusters
    11·2 answers
  • In year 2, Kilroy Company purchased land for a new office building at a purchase price of $325,000. There was an existing buildi
    8·1 answer
  • If Mike asked customers to complete a customer feedback survey after using his car detail service, he probably increased the lev
    12·1 answer
  • An aging of a company's accounts receivable indicates that $8400 are estimated to be uncollectible. If Allowance for Doubtful Ac
    9·1 answer
  • Companies like my​ gym, which seek to do business in new markets for manufacturing​ and/or marketing​ purposes, have many potent
    7·1 answer
  • question 3 fill in the blank: using a(n) keeps a record of any inconsistencies from the initial requirements of a project.
    5·1 answer
  • communities in which groups of chrisitna men gave up all their private possessions and lived very simply, devoting their lives t
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!