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3 years ago

Income statement information for Sadie Company is below:

Business

1 answer:

Alenkasestr [34]3 years ago

3 0

Answer:

34.285%

Explanation:

 Income Statement : 

Particular Amount

Sales $175,000

Less: Cost of goods sold $115,000

Gross profit $ 60,000

Gross profit Margin = [(Net Sales - cost of goods sold) / Net Sales]100

Gross profit Margin = [($175,000 - $115,000) / $175,000] 100

Gross profit Margin = [$60,000 / $175,000]100

Gross profit Margin = [0.34285]100

Gross profit Margin = 34.285%

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Dwight Donovan, the president of Benson Enterprises, is considering two investment opportunities. Because of limited resources,

alexandr402 [8]

Answer:

- Net present value of each project:

Project A:$37,193

Project B:$4,629

=> Project A should be chosen based on NPV approach as its NPV is higher.

- Internal rate of return of each project:

Project A: 20%

Project B: 12%

=>Project A should be chosen based on IRR approach as its IRR is higher

Explanation:

- Net present value calculation:

NPV for Project A: -111,000 + (37,116/0.08) x [1-1.08^(-5)] = $37,193

NPV for Project B: -43,000 + (11,929/0.08) x [1-1.08^(-5)] = $4,629.

- Internal rate of return approach;

IRR is the discount rate that bring NPV of project's cash flows to 0. Thus:

IRR for project A: -111,000 + (37,116/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 20%

IRR for project B: -43,000 + (11,929/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 12%

6 0

3 years ago

Deposits in transit Select one: a. have been recorded on the company's books but not yet by the bank. b. have not been recorded

mojhsa [17]

Answer:

a. have been recorded on the company's books but not yet by the bank

Explanation:

The deposit in transit means the deposit is recorded in the book of the company accounts but the same is not recorded in the bank books of account unless when they are not deposited.

So while preparing the bank reconciliation statement, we added the deposit in transit and deduct the outstanding checks in the bank books of accounts

7 0

4 years ago

Catamount Company had current and accumulated E&P of $585,000 at December 31, 20X3. On December 31, the company made a distr

Nata [24]

Answer and Explanation:

No loss will be recognized in the year 20X3 and a provide a reduction in E&P of $292,500

Given:

Current and accumulated E&P = $585,000

Fair market value = $234,000

Profit on accumulation:

Profit on accumulation = Current and accumulated E&P - Fair market value Profit on accumulation = $585,000 - $234,000

Profit on accumulation = $351,000

Distribution is divided because accumulated profit in year 20X3 is higher then distribution.

5 0

4 years ago

Exercise 21-11 Atlanta Company is preparing its manufacturing overhead budget for 2017. Relevant data consist of the following.

Marina CMI [18]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Units to be produced (by quarters): 10,400, 12,400, 14,200, 16,600. Direct labor: Time is 1.7 hours per unit.

Variable overhead costs per direct labor hour:

indirect materials $0.80;

indirect labor $1.30;

maintenance $0.70.

Fixed overhead costs per quarter: supervisory salaries $36,580; depreciation $17,620; and maintenance $13,700.

Manufacturing overhead budget:

First-quarter: (10400 units)

Indirect materials= (0.80*1.7)*10400= $14144

Indirect labor=(1.3*1.7)*10400= 22984

Maintenance= (0.70*1.7)*10400= 12376

Total variable cost= 49504

Fixed costs:

supervisory salaries= $36,580

depreciation= $17,620

maintenance= $13,700.

Total fixed cost= $67900

Total first quarter= $117,404

Second-quarter: (12400 units)

Indirect materials= (0.80*1.7)*12400 = $16864

Indirect labor=(1.3*1.7)*12400 = 27404

Maintenance= (0.70*1.7)*12400 = 14756

Total variable cost= 59024

Fixed costs:

Total fixed cost= $67900

Total cost second quarter= 126,924

Third-quarter: (14200 units)

Indirect materials= (0.80*1.7)*14200 = $19312

Indirect labor=(1.3*1.7)*14200 = 31382

Maintenance= (0.70*1.7)*14200 = 16898

Total variable cost= 67592

Fixed costs:

Total fixed cost= $67900

Total cost third quarter= 135492

Fourth quarter: (16600 units)

Indirect materials= (0.80*1.7)*16600 = $22576

Indirect labor=(1.3*1.7)*16600 = 36686

Maintenance= (0.70*1.7)*16600 = 19754

Total variable cost= 79016

Fixed costs:

Total fixed cost= $67900

Total cost fourth quarter= 146916

Total cost of the year= 117,404 + 126,924 + 135,492 + 146,916= $526,736

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3 years ago

Which aspect of the marketing mix is concerned with how much a customer is willing to pay for a product?

Natasha_Volkova [10]

Price is the aspect of the marketing mix is concerned with how much a customer is willing to pay for a product.

A customer is a recipient of goods, services, products, or ideas obtained from a seller, vendor, or supplier through financial transactions or in exchange for money or other valuable consideration.

A customer is an individual or business that purchases goods or services from another business. Customers are important because they drive sales. Without them, companies cannot continue to exist.

The definition of customer is a person who purchases products or services at a store, restaurant, or other retail establishment. An example of a customer is someone who goes to an electronics store and buys a television.

Learn more about customer here:brainly.com/question/380037
#SPJ4

3 0

2 years ago