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Lostsunrise [7]
3 years ago
10

Blanchard Company manufactures a single product that sells for $190 per unit and whose total variable costs are $150 per unit. T

he company’s annual fixed costs are $635,000. The sales manager predicts that annual sales of the company’s product will soon reach 40,500 units and its price will increase to $205 per unit. According to the production manager, variable costs are expected to increase to $145 per unit, but fixed costs will remain at $635,000. The income tax rate is 20%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes?
Business
1 answer:
iVinArrow [24]3 years ago
4 0

Answer:

The amounts of pretax and after-tax income can the company expect to earn from these predicted changes are $1,795,000  and $1,436,000  respectively.

Explanation:

The sales less the variable cost gives the contribution margin.

The contribution margin less the fixed cost gives the net operating income.  Furthermore, net income is the difference between the total sales and the total costs (fixed and variable).

Both sales and variable cost are dependent on the number of units sold.

with these expected changes,

Pretax Income

= 40,500($205 - $145) - $635,000

= $1,795,000

After tax income

= 80% * $1,795,000

= $1,436,000

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blagie [28]

Answer:

Excess reserves

Explanation:

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One of them is the use of reserve ratio.

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The excess excess of the reserve can now the used to give out loans

3 0
2 years ago
Adrian Atwood, a senior manager at MNC, spends a lot of his time assigning group members to particular tasks and scheduling thei
Triss [41]

Answer:

According to the Ohio state studies , we can say that the Adrian as leader is high in initiating structure.

Explanation:

Initiating structure can be defined as the particular degree to which a leader would define his or her role and also specify and organize the role of employees too, in order to achieve the organizations goals.

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3 0
3 years ago
Ultimate Sportswear has $100,000 of 8 noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has
andrew-mc [135]

Answer:

Preferred dividend = $8,000

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Explanation:

The computation of dividend is shown below:-

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Therefore the Preferred dividend is $8,000 and Common stock dividend is $22,000

7 0
3 years ago
During the current month, the Acme company had receivables of $16,590. It also had outgoing expenditures of $12,730. The company
andreyandreev [35.5K]

Answer:

$3,849.87

Explanation:

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The receipts include the receivables and the interest paid by the bank while the payments include the outgoing expenditure and bank charge.

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6 0
3 years ago
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