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inn [45]
2 years ago
14

Swan Textiles Inc. produces and sells a decorative pillow for $98.00 per unit. In the first month of operation, 2,200 units were

produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:
Variable manufacturing costs............ $23
Variable marketing costs.................... $6
Fixed manufacturing costs................$13
Administrative expenses, all fixed.....$19.5

Ending inventories:
Direct materials................................... 0
WIP....................................................... 0
Finished goods................................... 450units

What is the ooeratina income usina variable costing?

a. $59,750
b. $74,375
c. $131,250
d. $108,500
Business
1 answer:
Sonja [21]2 years ago
5 0

Answer:

Net operating income= 60,500

Explanation:

Giving the following information:

Variable manufacturing costs............ $23

Variable marketing costs.................... $6

Fixed manufacturing costs................$13

Administrative expenses, all fixed.....$19.5

<u>Under the variable costing method, the unitary product cost is calculated using only the manufacturing costs.</u>

First, we need to calculate the total fixed costs:

Fixed manufacturing costs= 2,200*13= 28,600

Fixed administrative expense= 1,800*19.5= 35,100

Total unitary variable cost= 23 + 6= 29

Now, we can calculate the income statement:

Sales= 1,800*98= 176,400

Variable cost= 1,800* 29= (52,200)

Contribution margin= 124,200

Fixed manufacturing costs= (28,600)

Fixed administrative expense= (35,100)

Net operating income= 60,500

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benjamin company has the following results of operations for the pat tyear. A foreign company (whose sales will not affect Benja
maks197457 [2]

Answer:

Increase by $5,975

Explanation:

Calculation to determine the profit

First step is to calculate the Direct Material and Direct labor per unit

Direct Material and Direct labor per unit=$100,000/16,000

Direct Material and Direct labor per unit=$6.25

Second step is to calculate the Relevant Variable Overhead

Relevant Variable Overhead = 20,000 * 20%

Relevant Variable Overhead= $4,000

Third step is to calculate the

Relevant Variable Cost per unit = $4,000 / 16,000

Relevant Variable Cost per unit= $0.25

Fourth step is to calculate the Total Relevant Variable cost per unit

Total Relevant Variable cost per unit = $6.25 + $0.25

Total Relevant Variable cost per unit= $6.5

Fifth step is to calculate the Relevant Contribution Margin per unit

Relevant Contribution Margin per unit = $8.05 - $6.5

Relevant Contribution Margin per unit= $1.55

Sixth step is to calculate the Total Contribution

Total Contribution = 4,500 * $1.55

Total Contribution= $6,975

Now let calculate the profit using this formula

Profit = Contribution - Fixed Cost

Let plug in the formula

Profit = $6,975 - $650 - $350

Profit = $5,975

Therefore If Benjamin accepts the offer, its profits will:Increase by $5,975

5 0
2 years ago
"Davcher, Inc. is considering a project for next year, which will cost $5 million. Davcher plans to use the following combinatio
AfilCa [17]

Based on the U.S. Treasury bond rate, the market return and the beta, Davcher's expected rate of return would be 6.5%.

<h3>What is the expected rate of return?</h3>

Using the Capital Asset Pricing Model (CAPM), the expected rate of return would be:

= Risk free rate + Beta x Market premium

Market premium:

= Market return - risk free rate

= 8% - 3% rate of treasury bonds

= 5%

Expected rate of return is:

= 3% + 0.70 x 5%

= 6.5%

Find out more on the Capital Asset Pricing Model at brainly.com/question/15851284.

6 0
2 years ago
Ken, a transaction broker, worked with both the buyer and seller in the sale of a home. The sale went well and it closed on time
vovangra [49]
Ken, the agent, violated the law of agency  
In this particular instance, when Ken told the the buyer that the seller would take a lower price than what was on the listing in order to close the sale faster and then told the buyer exactly which price they should offer, Ken, who is the agent, has now violated the law of agency
6 0
3 years ago
Johnny Appleseed and Company ships all of the apples from its orchards in the Pacific Northwest to a single buyer in Japan. The
Shtirlitz [24]

Answer:

Is not a multinational corporation

Explanation:

A multinational corporation possess facilities and other assets in at least one country apart from its home country. A multinational company generally has offices and lots of factories in different countries. They have a central head office in which they coordinate global management. A multinational corporation has its business in more than one country.

Johnny Appleseed and company supplies their product only to one country(Japan), this makes them a -multinational corporation.

6 0
2 years ago
What happens when you move a section header
german
Nothing really just the header moves where ever you move it to lol
5 0
3 years ago
Read 2 more answers
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