1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Reika [66]
3 years ago
7

Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area loo

ks like this:
Unit sales 60,000 units

Selling price per unit 50 per unit

Variable expenses per 30 per unit

Fixed expenses 500,000


(a) What is net operating income? (Negative amount should be indicated by a minus sign.)

(b) By what percentage did the net operating income increase?
Business
1 answer:
PtichkaEL [24]3 years ago
4 0

Answer:

a. $700,000

b. 40% increase

Explanation:

As per the data given in the question,

a)  

Increase in sales = 20%

So last  unit sale

= Unit sales ÷ increased unit sales percentage

= 60,000 ÷ 1.2

= 50,000

Previous year operating income  is

= Last unit sales × (Selling price per unit - variable cost per unit) - Fixed expenses

= 50,000 × ($50-$30) - $500,000

= $500,000

Current Net operating income  is

= Current units sales × (Selling price per unit - variable cost per unit) - Fixed expenses

= 60,000 × ($50-$30) - $500,000

= $700,000

b)

Percentage increase in net operating income is

= (Current Net operating income - Previous year operating income) ÷ Previous year operating income

= ($700,000 - $500,000) ÷ $500,000

= 40% increase

The net operating income is the income which is come after deducting all the variable cost, fixed cost from the sales revenue i.e earned by the company

You might be interested in
Name 3 factors that can contribute to increased output of goods and services in a country
galina1969 [7]
I would think money,supply or demand? 
6 0
2 years ago
Bianca is conducting an experiment to determine how temperatures affect the productivity of employees. she has just completed th
Lyrx [107]
What are you asking as an abriviation
4 0
2 years ago
Units of Labor Quantity of Output Marginal Revenue
lora16 [44]

Answer:

$7,650

Explanation:

Calculation for the marginal revenue product of the fifth unit of labor

Using this formula

Fifth unit of Labor marginal revenue product=Fifth Quantity of Output*Marginal Revenue

Let plug in the formula

Fifth unit of Labor marginal revenue product=1,530 *$5

Fifth unit of Labor marginal revenue product=$7,650

Therefore the marginal revenue product of the fifth unit of labor is $7,650

3 0
3 years ago
Which is a short-term consequence of making a late payment on your bill
AysviL [449]

Answer:

Which is a short-term consequence of making a late payment on your bill? There will be a late fee added to the bill.

8 0
3 years ago
Gillian is easily impressed by make-up which claims to be manufactured with the use of crystals, but without really wondering ab
Ivan

Answer:

Corpus Callosum

Explanation:

A large bundle of axon fibers. Connects left and right sides of brain. Thickens during adolescence, increasing ability to process information.

5 0
3 years ago
Read 2 more answers
Other questions:
  • Brighton, Inc., manufactures kitchen tiles. The company recently expanded, and the controller believes that it will need to borr
    8·1 answer
  • Which of the following describes one of the pillars of Wikipedia?
    11·2 answers
  • A firm expects to sell 25,900 units of its product at $7 per unit. Pretax income is predicted to be $60,900. If the variable cos
    8·1 answer
  • Pension data for Sterling Properties include the following:
    6·1 answer
  • Consider the ultimatum game loading... ​, where an​ "allocator" is​ given, say, ​$50.00 to decide how to divide with a​ "recipie
    9·1 answer
  • Ahmed & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Unit selling
    13·1 answer
  • Which lists the Business, Management, and Administration careers in order from highest level of education typically required to
    15·1 answer
  • Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $94,000 cash immediately
    15·1 answer
  • If Apr of a savings account is 2.7% and interest is compounded quarterly, what is the approximate APY of the account
    15·1 answer
  • Exporting countries primarily agree to voluntary export restraints (VERs) to A) minimize exposure in the importing country. B) r
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!