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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 current sections of Birmingham Inc.’s balance sheets at December 31, 2019 and 2020, are presented here. Birmingham’s net
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Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense    25,000

amortization expense       10,000

gain on disposal          <u>     (7,000)   </u>

Adjusted Income            221,000

Change in Working Capital:

Increase in A/R        (27,000)

Decreasein Inv          17,000

Increase in Prepaid   (5,000)

Increase Accrued /P   11,000

Decreasein A/P         (6,000)

Change In Working Capital     (10,000)

From Operating Activities    211,000

Investing

Sale of Equipment  47,000

Financing

Bonds Issued   60,000

Cash Flow              318,000

Beginning Cash   99,000

Cash Flow           318,000

Ending Cash        417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

6 0
3 years ago
The quantity supplied: is the amount that buyers are willing and able to buy at a particular price. shows how much sellers are w
asambeis [7]

Answer:

is the amount that sellers are willing and able to sell at a particular price.

Explanation:

Quantity supplied refers to the amount of goods sold or supplied at a particular price by the sellers in the market. According to the law of supply, there is a positive relationship between the price of the commodity and the quantity supplied of that commodity.

This indicates that an increase in the price of the commodity will lead to increase the quantity supply of the commodity and a decrease in the price of the commodity will lead to decrease the quantity supplied of the commodity.

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One of the ten IG principles is a Continuous improvement. What is the importance of this principle to the organization program?
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Answer:

The correct answer is letter "A": Provide periodic program review and necessary adjustment against gaps and or shortcomings.

Explanation:

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3 years ago
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Answer: (B) Promotional strategy

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