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bekas [8.4K]
3 years ago
5

Schrute Farm Sales buys portable generators for $ 470 and sells them for $ 720 He pays a sales commission of​ 5% of sales revenu

e to his sales staff. Mr. Schrute pays $ 3 comma 000 a month rent for his​ store, and also pays $ 1 comma 700 a month to his staff in addition to the commissions. Mr. Schrute sold 700 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of​ June, what would be his operating​ income?
Business
1 answer:
tigry1 [53]3 years ago
5 0

Answer:

The contribution margin statement is found below with a contribution margin of $149,800 and operating income of $145100

Explanation:

Contribution Margin Statement

Sales  revenue ($720*700)              $504000

Variable costs:

Cost of generators($470*700)         ($329000)

Commission(5%*$504000)              <u> ($25200)</u>

Contribution margin                           $149,800

Fixed costs

Rent                                                     ($3000)

Additional commission                      <u> ($1,700)</u>

Operating income                              $145100

Cost of rent is fixed as it is not depended on the quantity of generators sold.

Additional commission is fixed amount,so it is a fixed cost, while costs of buying generators  as well as the commission of 5% are both variable costs.

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The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, spec
Elza [17]

Answer:

True

Explanation:

Storage warehouses are used to store items for short periods of time while distribution warehouses are much bigger facilities that are used to gather and redistribute products.

Distribution warehouses are usually very big and can store a lot of products, while storage warehouses are usually a big facility that is divided into smaller units, each smaller unit serves as a storage warehouse. Storage warehouses are used to store more specific items while distribution warehouses can handle different types of goods.

4 0
3 years ago
Henry Carr and Noreen Mason formed a partnership, dividing income as follows: annual salary allowance to Carr of $42,000; intere
Evgesh-ka [11]

Answer:

$239,060

Explanation:

The computation of the net income distributed to Carr as follows;

<u> Particulars     Carr      Mason      net income distributed   Non-allocated </u>

Net income                                                                              $442,000

Salary

allowance     $42,000                  $42,000                            $400,000

Interest

on capital     $4,410   $10,290      $14,700                            $385,300

left amount  $192,650 $192,650  $385,300                        $0

Net income  $239,060

8 0
3 years ago
Allison robards is the owner of backstreet books, a small eclectic-style bookstore in a bustling college town. allison prides he
Taya2010 [7]

Having recently completed a business class, you suggest to Allison that she calculate the <u>"inventory turnover"</u> ratio for her store, and then compare it to other stores in her industry.


Inventory turnover is a ratio indicating how often an organization has sold and supplanted stock amid a given period. An organization would then be able to partition the days in the period by the inventory turnover equation to ascertain the days it takes to move the stock close by. It is determined as deals separated by normal stock. Computing inventory turnover can enable organizations to settle on better choices on valuing, fabricating runs, how to use advancements to move overabundance stock, and how and when to buy new stock. Inventory turnover may likewise be found by partitioning cost of merchandise sold with normal stock.  

7 0
3 years ago
Read 2 more answers
Ruby, age 50, is considering going back to school. She would like to retire at age 67. She currently earns $50,000 per year. If
weeeeeb [17]

Answer:

Ruby should go to college.

Explanation:

Ruby is currently 50 years old and earning $50,000 per year.  

She would like to retire at 67.  

She is thinking of going back to college, to complete a graduate degree.

After completing a graduate degree from the college she would earn $55,000.

The total cost of a graduate degree is $75,000.  

Ruby still has 17 years to work and earn.  

Her income will increase by $5,000 after college

The increase in income earned after college until retirement

= $5,000 \times 17

= $85,000

Since the increase in income is greater than the cost of going to college, Ruby should go to college.

4 0
3 years ago
M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and
8090 [49]

Answer:

a) 100 units

b) 2.5 order per year

c) 50 units

Explanation:

Given data:

demand 250 units

order cost is $20

holding cost $1

a) Economic order quantity EOQ = \sqrt{\frac{2\times demand \times order\ cost}{holding \ cost}}

EOQ = \sqrt{\fac{2\times 250 \times 20}{1}} =100 units

b) number of order for each year = \frac{annual/ demand}{EOQ}

                                                    = \frac{250}{100} = 2.5order/ year

c) average inventory = \frac{Q}{2} = \frac{100}{2} =  50 units

3 0
3 years ago
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