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Flura [38]
3 years ago
11

It costs​ Homer's Manufacturing to produce baseballs and Homer sells them for a piece. Homer pays a sales commission of​ 5% of s

ales revenue to his sales staff. Homer also pays a month rent for his factory and​ store, and also pays a month to his staff in addition to the commissions. Homer sold baseballs in June. If Homer prepares a contribution margin income statement for the month of​ June, what would be his operating​ income?

Business
1 answer:
Nonamiya [84]3 years ago
4 0

Answer:

$105,075

Explanation:

The computation of the operating income is shown below:

Sales (4 × 69,500)                                              $278,000

Less:Variable costs (0.95 × 69,500 + 5% × 278,000)  $79,925

Contribution margin                                                     $198,075

Less: fixed cost (13,000 + 80,000)                      $93,000

Net operating income                                                 $105,075

We simply deduct the variable cost and the fixed cost from the sales to arrive at the net operating income

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Astair, Inc. reported sales of $6,000,000 for the month and incurred variable expenses totaling $4,600,000 and fixed expenses to
tiny-mole [99]

Answer:

Break-even point in units= 78,000

Explanation:

Giving the following information:

Fixed cost= $940,000

Total contribution margin= (6,000,000 - 4,600,000)= $1,400,000

Unitary contribution margin= 1,400,000 / 70,000= $20

Desired profit= $620,000

<u>To calculate the number of units to be sold, we need to use the following formula:</u>

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (940,000 + 620,000) / 20

Break-even point in units= 78,000

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2 years ago
How can the government promote industrial development in south africa?​
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Answer:

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Options to Answer

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