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
damaskus [11]
3 years ago
10

Cherry Street Market reported the following information for the sales of their only product, cherries sold by the pint: Cherry S

treet would like to increase their selling price by 50 cents per unit, and feel that this will decrease sales volume by 10%. Should Cherry Street increase the price, and what will the effect be on net operating income?
Business
1 answer:
Softa [21]3 years ago
3 0

Answer:

Yes; $945 increase

Explanation:

The computation of the effect on net operating income is shown below:

= $31,500 ÷ $4.50

= 7,000 pints

After 10% increase units to be sold

So,

= 7,000 × 90% = 6,300 pints

Now

Current contribution margin = $4.50 - $1.35 = $3.15

Revised contribution margin = $5.00 - $1.35 = $3.65

So,

Total Contribution $3.65 × 6,300 pints    = $22,995

Less : Fixed cost                                            $13,000  

Net Revised Income                                      $9,995

Less: Current Net Income                             $9,050

Increase / (decrease)                                    $945

You might be interested in
Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:
WARRIOR [948]

Answer:

1. Dr Cash $8,290

Cr Common stock $8,290

2. Dr Supplies $980

Cr Cash $390

Cr Accounts payable $590

3. No Entry $0

No Entry $0

Explanation:

Preparation of the entries to record the transactions

1. Based on the information given if he deposited the amount of $8,290 of his own money into this account in exchange for common stock the journal entry will be:

Dr Cash $8,290

Cr Common stock $8,290

(Being To record the investment)

2. Based on the information given in a situation where he Purchased photography supplies at a total cost of the amount of $980 which means that if The business paid the amount of $390 in cash, and the balance is on account the journal entry will be:

Dr Supplies $980

Cr Cash $390

Cr Accounts payable $590

($980-$390)

(Being To record the purchase of supplies)

3. Based on the information given in a situation where he Obtained the estimates on the cost of photography equipment from the three different manufacturers which means that no transaction or entry will be recorded.

No Entry $0

No Entry $0

4 0
3 years ago
A magazine company's Unearned Revenue account had a balance of $12,700 on January 1, 2013. On December 31, 2013, as part of the
crimeas [40]

Answer:

The  amount of cash received by the magazine company as advance payments from customers during the year 2013 must have been $14,400.

Explanation:

Let cash received from customers be x :

$12,700 + x - $14,800 = $12,300

                                  x = $14,400

Therefore, The  amount of cash received by the magazine company as advance payments from customers during the year 2013 must have been $14,400.

8 0
3 years ago
Geneva needs additional capital to launch her business but does not want to share management responsibility with partners. Neith
Talja [164]

Answer:

The answer is: C) S corporation

Explanation:

Geneva should choose an S Corporation. In my opinion she should do it because corporate income, losses, deductions, and credits are passed through to its shareholders, while it can be managed like a normal corporation.

If she chooses a Limited Liability Partnership she would still have to share management responsibility with her partners and C Corporations are heavily taxed. If she had enough money she could start a sole proprietorship business, but she doesn't have enough money.

5 0
3 years ago
Consider the following​ statement: ​"An increase in supply decreases the equilibrium price. The decrease in price increases​ dem
pochemuha

Answer:

The correct answer is option A.

Explanation:

An increase in supply decreases the equilibrium price as the supply curve shifts rightward and intersects the demand curve at a lower point. This decline in the equilibrium price causes the quantity demanded to increase. The demand for the product remains the same.

The statement given in the question is false. A change in demand is caused by a change in other factors while the price of the product remains the same. The change in price affects the quantity demanded.

5 0
3 years ago
An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 50 h
Anettt [7]

Answer:

a. Gross pay = $1,320

b. Net pay = $917

Explanation:

a. Determine the gross pay for the week. $ If applicable, round your final answer to two decimal places.

Pay for 40 hours = 40 * $24 = $960

Pay for excess of 50 hours = (50 - 40) * $24 * 1.5 = $360

Gross pay = $960 + $360 = $1,320

b. Determine the net pay for the week.

Net pay = $1,320 - ($1,320 * 6.0%) - ($1,320 * 1.5%) - $304 = $917.

3 0
3 years ago
Other questions:
  • Assume India can produce either 15 bottles of milk or 50 cartons of eggs using all of its available resources, and Indonesia can
    13·1 answer
  • Issa water makes up roughly what percentage of your total bodyweight? 35% 25% 60% 70%
    6·1 answer
  • Case ScenarioOver the past four years, the LSS organization, a nonprofit organization headquartered in Minneapolis, MN, has beco
    12·1 answer
  • In 1 or 2 sentences, describe why sellers in a perfectly competitive market have no control over price.
    13·1 answer
  • Suppose that Australia imposes a tariff on imported beef. If the increase in producer surplus is $100 million, the increase in t
    15·1 answer
  • Fanning Company makes a product that sells for $30 per unit. The company pays $16 per unit for the variable costs of the product
    12·1 answer
  • Give three examples of behavior that you believe is unethical that you have observed in school
    8·1 answer
  • XYZ Company had 200,000 shares of common stock outstanding on December 31, 2020. On July 1, 2021, XYZ issued an additional 44,00
    5·1 answer
  • If the united states experiences lower personal savings rates, then it must be the case that?
    6·1 answer
  • brown industries operates a defined benefit pension plan. information received from the actuary and the trustee related to the y
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!