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stealth61 [152]
3 years ago
9

Milden Company is a merchandiser that plans to sell 25,000 units during the next quarter at a selling price of $52 per unit. The

company also gathered the following cost estimates for the next quarter:
Cost Cost Formula
Cost of good sold $22 per unit sold
Advertising expense $172,000 per quarter
Sales commissions 5% of sales
Shipping expense $54,000 per quarter + $6.00 per unit sold
Administrative salaries $82,000 per quarter
Insurance expense $9,200 per quarter
Depreciation expense $52,000 per quarter


(1) Prepare a contribution format income statement for the next quarter.
(2) Prepare a traditional format income statement for the next quarter.
Business
1 answer:
marta [7]3 years ago
7 0

Answer:

Instructions are listed below

Explanation:

1) A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.

Sales= 25000q*$52= $1300000

Variable costs:

Cost of good sold= $22*25000= 550000

Sales commissions=sales*0,05=65000

Shipping expense= $6*25000= 150000

Total variable cost= $765000

Contribution margin=$535000

Fixed costs:

Advertising expense= $172,000

Shipping expense= $54,000

Administrative salaries= $82,000

Insurance expense= $9,200

Depreciation expense= $52,000

Total fixed cost= $369200

Net profit= $165800

2)The general structure of an income statement proceeds as follow:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

In this exercise:

Revenues= 1300000

COGS= 550000

Gross profit= 750000

Sales commissions=sales*0,05=65000

Shipping expense= $6*25000+54000= 204000

Advertising expense= 172000

Administrative salaries= 82000

Insurance expense= $9200

EBITDA= 532200

Depretiation= 52000

Net profit= $165800

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alekssr [168]

The monthly mortgage payment including principal and interest is $1,936.25

Explanation:

PV = (1 - 0.20) × $325,000 = $260,000‬

r = 0.041 / 12

t = 15 * 12 = 180

C = \frac{PV}{\frac{1- [\frac{1}{(1+r)^{t} } ] }{r}}

C = $260,000‬ ÷ [1 - {1 / (1 + 0.041 / 12)∧180} / (0.041 / 12)]

C =  $1,936.25

The monthly mortgage payment including principal and interest is $1,936.25

7 0
3 years ago
Who is responsible for responding to workflow(s) for equipment dispatch requests through the business workplace require An appro
Roman55 [17]

Answer:

Commander

Explanation:

GCSS-Army is short for Global Combat Support System-Army. The GCSS is a section of the United States Army that is fielded under the 11th Armored Cavalry Regiment. There are the GCSS Wave 1 and GCSS Wave 2. These two groups have different roles.

The role of the Commander falls under the Wave 2 functions where he is required to perform the roles of maintenance, dispatch, unit supply, and property book functions. The Wave 1 function is mostly about allowing access to support supply activity functions. The commanders in any organization they work with can screen several transactions and give approval for equipment dispatch.

7 0
3 years ago
Which sequence describes the long-run adjustment process in a competitive market when firms are experiencing short-run economic
dedylja [7]

Answer:

b. some firms exit, industry supply decreases, market price rises.

Explanation:

A perfect competitive industry is characterised by many buyers and sellers of homogenous goods and services. There are no barriers to entry or exit of firms.

If firms are making economic loss is the short run, in the long run, firms leave the industry. This leads to a fall in supply and prices rise as a result. In the long run, firms in a competitive industry earn zero economic profit.

I hope my answer helps you

7 0
3 years ago
Which of the following contributed most to early people’s ability to produce food?
BartSMP [9]

Answer:

The answer is "The end of the Ice Age."

Explanation:

4 0
3 years ago
1.The Broomfield Bricklayers has a bond issue outstanding with an annual coupon rate of 9%. The par value of the bond is $1,000.
Charra [1.4K]

Answer:

answer 1.   9.24%

answer 2.   13.24%

Answer 3.  22.48%

Answer 4.   $1,134.20

Explanation:

answer 1

Coupon amount = Face value * coupon rate

=1000*9%

=$90

current price of bond=$974

Current yield = Coupon amount/current price of bond

=90/974

=0.09240246407 or 9.24%

answer 2.

sale price after one year = 1103

purchase price or opening price = 974

Capital gains yield = (Sale price - Purchase price)/Purchase price

=(1103-974)/974

=0.1324435318 or 13.24%

Answer 3

One year coupon received = $90

Expected return of bond = Current yield + Capital gains yield

=0.09240246407+0.1324435318

=0.2248459959 or 22.48%

Another formula:

Expected return on bond = (Coupon received + sale price - purchase price)/Purchase price

(90+1103-974)/974

=0.2248459959

or 22.48%

Answer 4

Calculator inputs

I/Y (discount rate)= 8%

N (number of periods ) = 10

PMT (coupon amount) = 1000*10% =100

FV (face value) = 1000

press CPT and then -PV

Answer will be $1,134.20

3 0
3 years ago
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