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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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The law of diminishing returns only applies in cases where:
madreJ [45]

Answer:

C)  there is at least one fixed factor of production.

<u>Multiple-choice options</u>

A) there is increasing scarcity of factors of production.

B) the price of extra units of a factor is increasing.

C) there is at least one fixed factor of production.

D) capital is a variable input.

Explanation:

he law of diminishing marginal returns cites that adding extra input while maintaining the others fixed will cause the overall output to decrease . Adding one more production input while keeping the rest intact decreases the marginal returns and increases the average production cost.

The law only applies where there at least one fixed input. When the firm uses more of the variable input, the firm's marginal product will eventually decrease.

6 0
3 years ago
Cold Ice has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current lia
erastova [34]

Answer:

The internal growth rate is 4.36%

Explanation:

net income = 8.3%*386,400

                   = $32,071.20

net working capital = current assets – current liabilities

current assets – 37200 = 16700

                                        = $53,900

total assets = current assets + net fixed assets

                   = 53,900 + 391,500    

                   = 445,400

Then:

ROA = 53,900/445400

        = 0.072005

b = 1 - 48% = 0.52

internal growth rate = 0.072005*0.52/1 - (0.072005*0.52)

                                 = 0.041763/0.958237

                                 = 4.36%

Therefore, The internal growth rate is 4.36%

7 0
3 years ago
PLEASE ANSWER THIS QUESTION ASAP
zaharov [31]

Answer:

Read each page and do the quizzes. After you have read through the pages of the website, assess what you learned. Write a 600 word summary in your own words that identifies the main points you learned. Your summary should include at least one question and answer from each quiz. Explain your answers. Use a publishing program to create a safety poster to make workers aware of safety hazards. I do not agree with the link assessmne,t but I would be a stafe 3 on the MyersBriggs scale because odf above

.Explanation:

Yes it fits ultimately.

3 0
3 years ago
Calculate GDP loss if equilibrium level of GDP is $8,000, unemployment rate 8.8%, and the MPC is 0.80. Hint: (Use Okun's law to
stich3 [128]

Answer:

Loss of gdp = 7.6%

Eliminate gdp loss = 121.6

Explanation:

According to Okun's law , 12% loss of gdp.

Natural rate of unemployment=5%

Cyclical unemployment = Actual unemployment - Rate of Unemployment

Cyclical unemployment = 8.8% - 5%

Cyclical unemployment =3.8%

Loss of gdp = 3.8%(2)

Loss of gdp = 7.6%

Loss of gdp = (7.6%(8,000)

Loss of gdp = 608

Spending multiplier = 1/(1 - mpc)

Spending multiplier = 1/(1 - 0.8)

Spending multiplier = 1/ 0.2

Spending multiplie = 5

So,

Eliminate gdp loss = 608/5

Eliminate gdp loss = 121.6

5 0
3 years ago
Cosmetics makers focus on the unique needs of customers of different ages. The cosmetics makers recognize the importance of ____
solniwko [45]

Answer:

market segments

Explanation:

Market segments -

It refers to the portion of people , who have some common features , are referred to as market segment .

Where the market is segmented on the basis of some uniques characteristics in order to stand out in the competitive world .

Hence , from the given scenario of the question.

Cosmetics are designed according to the particular age age group , showcasing to be an example of market segments.

8 0
3 years ago
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