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A company's flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed cost

Archy [21]

Answer:

Expected level of operating income = $133,000

Explanation:

given data

flexible budget = 10,000 units

sales = $200,000

variable costs = $40,000

fixed costs = $75,000

solution

we get here Contribution margin for 10000 units that is express as

Contribution margin = sales - Variable cost ..............1

put here value and we get

Contribution margin = $200,000 - $40,000

Contribution margin = $160,000

and

now we get here Contribution margin expected for 13000 units that is

Contribution margin expected = $160,000 ÷ 10000 × 13000

Contribution margin expected = $208,000

so here Expected level of operating income

Expected level of operating income = Contribution Margin - Fixed costs

Expected level of operating income = $208,000 - $75,000

Expected level of operating income = $133,000

4 0

4 years ago

Brian was passionate about Filson. It was the only place he'd buy his clothes. If anyone asked him about clothes, he would talk

ANTONII [103]

Answer:

<u>Brand loyalty.</u>

Explanation:

Customer loyalty to the brand is one of the characteristics most desired by a company's marketing.

Because the greater the perception and satisfaction with which customers perceive the brand, the greater its value and its strengthening in the market.

However, this is a difficult characteristic to be achieved by the number of competitors in the market, in order to achieve customer loyalty, strategic marketing planning is necessary whose efforts and actions are directed to provide value and satisfaction to the customer, through a set of variables , such as: quality, benefits, price, good service and others.

It is important that the company uses the market segmentation strategy to get to know in depth who its customer is, what its needs and preferences are, to direct the marketing strategy effectively, to consolidate the brand, generate reliability and loyalty of the client.

8 0

3 years ago

While different natural resources and the theory of comparative advantage can explain many trade patterns, they cannot explain a

kakasveta [241]

Answer:

Intra-Industry Specialization

Dynamic Comparative Advantage

Product Life Cycle Theory

Explanation:

Ice wine is a special spirit that can only be made during a few months in the winter. The nations of Fruzenton and Grappovia are in different hemispheres, and each produces ice wine. During each nation’s winter, its ice wine industry produces enough to meet domestic demand and export to the other country. The ice wine exchanged between the two nations is nearly identical. Intra-Industry Specialization

For many years, the nation of Stilettopia’s high-heel shoe producers have struggled in the international market because strict labor laws have made it hard to get productivity out of Stilettopians. In an effort to stimulate its industry, legislators in Stilettopia approve a bill that reduces the minimum wage and extends the number of hours shoe laborers can work in a day. Once the new policies take effect, Stilettopian high-heel shoe makers have lower costs than international competition and are able to reduce prices to the point that there is demand to export their shoes. Dynamic Comparative Advantage

Since the turn of the century, nearly all X-ray machines purchased by hospitals have been made in Alloway. However, engineers in Osteoville recently designed an X-Ray machine that produces much more accurate results, leading to fewer malpractice cases and more reliable diagnoses. These new X-ray machines quickly become the industry standard. As a result of this, the production of X-ray machines is thriving in Osteoville, while firms in Alloway lose market share and begin trying to develop a new source of advantage Product Life Cycle Theory

7 0

3 years ago

A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision. A vision states th

Tju [1.3M]

Answer:

<u>A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision.</u>

Explanation:

Defining a company's vision and mission is extremely important for its strategic planning, as its premises will serve as a guide to assist managers in the decision-making process.

The mission corresponds to the company's raison d'être, the reason for its existence and what its purpose is. The vision corresponds to the aspirations, objectives and goals that the company intends to achieve in the future. So it is correct to say that A vision affirms what a company wants to accomplish; a mission states how a company plans to realize that vision.

5 0

3 years ago

Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $49,000C

Slav-nsk [51]

Answer:

Since the answer requires construction of a proforma income statement, please refer to the explanation section for the answer

Explanation:

The proforma invoice has been provided below. Sales have been increased by 18%. The question states that costs vary with sales therefore, the costs are kept at the same percentage of sales in the proforma. Costs as a percentage of sales in the question come out to 82%. Taxable income is Sales less Costs. Taxes are 22% of taxable income. Dividend payout ration is calculated by dividends paid divided by total income available to shareholders. Total income available to shareholders includes Net Income PLUS non cash charges (depreciation) MINUS Non Cash Sales. With the information given in the question, it is assumed that non cash charges and non cash sales are zero so the only income available to shareholders is the net income. Dividend payout in the question comes out to 35%.

Sales 57,820.00

Costs 47,554.00

Taxable Income 10,266.00

Taxes 2,258.52

Net Income 8,007.48

Dividend = Dividend payout ratio x Net Income: 0.35 x 8,007.48

So, Dividends = 2,832.00

Addition in Retained earnings = Net Income - Dividend = 8,007.48 - 2,832

So, Addition in Retained earnings = 5,175.48

5 0

3 years ago