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Alja [10]
3 years ago
6

Calgary Doughnuts had sales of $100 million in 2007. Its cost of sales were $70 million. If sales are expected to grow at 20% in

2008, compute the forecasted costs using the percent of sales method
Business
1 answer:
arlik [135]3 years ago
8 0

Answer:

$84 million

Explanation:

<u>For the year 2007</u>

Sales= 100 million

Cost of sales = 70 million

Percent of sales = Cost of sales / Sales * 100

P.S.=70/100 * 100 = 70%

<u>For the year 2008</u>

Sales= 120 million

Sales= Sales in 2007 * (1+20%)

Sales= 100 million* (1+0-20)

Sales=100 million *1.20

Sales=120 million

Therefore; Cost of Sales / Sales = 70%

Cost of Sales = 70% * Sales

COS= 70% * 120 Million

COS= 0.70 * 120 million

COS= 84 million

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When a company gains a competitive advantage over an action that becomes mandatory in the line of business, such as providing package tracking capability, this is an example of profitability factors becoming productivity factors over time.

<h3 /><h3>What are profitability factors?</h3>

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Therefore, an organization's profitability factors became productivity factors by instituting new forms of work management that generated competitive advantages for the organization.

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2 years ago
A vendor allows a 2% discount if an invoice is paid within 10 days. a purchase was made for $5,000 on june 10 and paid on june 1
Kamila [148]
An invoice is a document given from the seller to the buyer stating the quantity of products bought, agreed prices and transactions made between the two parties. If the buyer bought the product in June 10 and decides to pay on the 19th, only 9 days have passed since the date of purchase. This is inclusive of the agreement written that 2% discount is given if paid not more than 10 days. Therefore, the check should be

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2 years ago
Alex withdrew $500,000 from an account that paid 5 percent annual interest and used the funds to purchase real estate. After one
oksano4ka [1.4K]

Answer:

a) 25,000

Explanation:

The computation of the economic profit is shown below;

Economic profit is

= Revenue - Explicit cost - Implicit cost

= $550,000 - $500,000 - $500,000 × 5%

= $550,000 - $500,000 - $25000

= $25,000

Hence, the economic profit on this deal was $25,000

Therefore the correct option is a.

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2 years ago
Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP). In exchange for this interest, G
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Answer:

The appropriate answer is "$9,300".

Explanation:

The given values are:

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= $31,000

Adjusted basis,

= $15,500

Encumbered mortgage,

= $9,300

Now,

The Gerald's outside basis will be:

= Adjusted \ basis-Encumbered \ mortgage+Share \ of \ mortgage

On substituting the given values, we get

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= 18,600-9,300

= 9,300 ($)

7 0
2 years ago
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