All categories

2 years ago

A company has net sales of $788,500 and cost of goods sold of $569,500. Its net income is $26,280. The company's gross margin

Business

1 answer:

lidiya [134]2 years ago

3 0

Answer:

Gross margin = $219,000

Operating income = $198,720

Explanation:

The computation of gross margin

and operating expenses is shown below:-

Gross margin = Net sales - Cost of goods sold

= $788,500 - $569,500

= $219,000

Net income = Gross margin - Operating expenses

$26,280 = $219,000 - Operating expenses

Operating expenses = $219,000 - $26,280

= $198,720

Therefore the gross margin is $219,000 and operating income is $198,720

We simply applied the above formulas

You might be interested in

Sheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $

bekas [8.4K]

Answer:

The cost per unit for product B is $ 15 per unit

Explanation:

Only Manufacturing Costs are used in Product Costing. Thus to find the Cost Per Unit of Product B, we Prepare a Manufacturing Cost Summary for Product B.

Step 1 Prepare a Manufacturing Cost Summary for Product B

Direct materials $ 15,000

Direct labor $24,000

Overhead costs($24,000/$36,000) × $54,000 $36,000

Total Cost for Product B $75,000

Step 2 Calculate the Cost Per Unit for Product B

Cost Per Unit = Total Cost / Number of Units Produced

= $75,000 / 5,000 units

= $ 15 per unit

3 0

2 years ago

Read 2 more answers

4. Consumption as a component of GDP refers to the expenditure of A. banks. B. household. C. producers. D. government.

aniked [119]

The answer is house hold

3 0

2 years ago

DJ and Nicolette paid $1,600 in qualifying expenses for their daughter Nicole to attend the University of Nevada. Nicole is a so

aliina [53]

Answer and Explanation:

As we know that the credit amount should be allowed a qualified deduction of 100% till $2,000 and the next 25% is $2,000

In the given situation, the credit amount would be

= $1,600 × 100%

= $1,600

As the AGI is $175,000 i.e. exceeded the prescribed amount i.e. $160,000 so it would be phased out till $180,000

So, after considering the phase out application limits, the credit is

= $1,600 × ($180,000 - $175,000) ÷ ($180,000 - $160,000)

= $400

So, the total credit is $400 out of which $160 is refundable and the remaining balance i.e. $240 would be non-refundable

7 0

2 years ago

Slow 'n Steady, Inc., has a stock price of $ 34, will pay a dividend next year of $ 3.10, and has expected dividend growth o

erica [24]

Answer:

10.92%

Explanation:

The formula and the computation of the estimated cost of equity capital is shown below:

Stock price = Next year dividend ÷ (cost of equity - expected dividend growth rate)

We assume the cost of equity be X

$34 = $3.10 ÷ (cost of equity - 1.8%)

$34 X - $34 × 1.8X = $3.10

After solving this,

The cost of equity would be 10.92%

3 0

2 years ago

What are the different elements of working capital and explain actions that Management of a business entity might take to reduce

faltersainse [42]

The different elements of working capital are current current asset and current liabilities. The management of a business entity might take ratio analysis to reduce the cycle.

Working capital management assists in sustaining the smooth operation of the net operating cycle, otherwise called the cash conversion cycle.

<h3>What is working capital management?</h3>

Working capital management is a business strategy formulated to ensure that an organisation functions efficiently by overseeing and utilizing its current assets and liabilities to their most effective use.

Therefore, learn more about working capital management: brainly.com/question/28287025

#SPJ1

4 0

9 months ago