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
vodka [1.7K]
2 years ago
7

Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable cost

s $250,000, and fixed costs $94,000. Management is considering the following independent courses of action to increase net income. 1. Increase selling price by 10% with no change in total variable costs or units sold. 2. Reduce variable costs to 56% of sales. Compute the net income to be earned under each alternative. 1. Net Income $ 2. Net Income $ Which course of action will produce the higher net income
Business
1 answer:
Neko [114]2 years ago
3 0

Answer and Explanation:

The computation is shown below:

1.  

Selling Price = Sales ÷  Units Sold

Current Selling Price = $385,000 ÷  5500

= $70

Now

Expected Selling Price per unit = $70 + ($70× 10%)

= $77

Now

Expected Sales = 5500 × $77

= $423,500

Now

Net Income = Sales - Variable Cost - Fixed Cost

= $423,500 - $250,000 - $94,000  

2.  

Sales = $385000

Variable cost = $385,000 × 56% = $215,600

Sales                     $385,000

Less: variable cost -$215,600

Contribution Margin $169,400

Les: fixed cost          -$94,000

Net Income               $75,400

As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.

You might be interested in
Basing the Results on Probability
xxTIMURxx [149]
Answer: Calculation


Probability is about calculation; it's essentially a ratio, in which we compare how much the outcome occur, compared to all likely outcomes..



Hope this helps.
6 0
2 years ago
Read 2 more answers
An example of a consumer would be a
goldenfox [79]

A bear would be an example of a consumer

4 0
3 years ago
As you move from job shop towards continuous process: A. Your capital intensity decreases B. Your volume decreases C. Your custo
zzz [600]

Answer: C. Your customization ability decreases.

Explanation:

Job Shops are able to customize products and services because they manufacture products on a small scale and usually for individual job orders whereas continuous processing is more large scale and the products are more homogeneous.

As one move from a job shop to a continuous process, they will find that they would be unable to customize products as much as they could before because they would be producing a higher volume of goods and so would not have the time to be customizing the products as much.

5 0
3 years ago
1. The pre-emptive right of a common stockholder is the right toa. share proportionately in corporate assets upon liquidation.b.
FromTheMoon [43]

Answer:

<em>The pre-emptive right of a common stockkolder is the reight to share proportionately in any new issues of stock of the same class. Letter B</em>

Explanation:

The pre-emptive right is a right belonging to existing shareholders of a corporation to avoid a involuntary dilution of their ownership stake by giving them the chance to buy a proportional interest of any future issuance of common stock.

4 0
3 years ago
What is a beneficiary? Question 50 options: The person who files insurance claims on your behalf The person who determines wheth
Zina [86]
A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured.
6 0
2 years ago
Other questions:
  • A(n) ________ underwrites new issues of securities for corporations, states, and municipalities needed to raise money in the cap
    11·1 answer
  • Shanon will pay for an annual gym membership that costs $420.00. She has 152.62 in her checking account. What are the pros and c
    8·1 answer
  • At the beginning of last​ year, Barrington Corporation purchased a piece of heavy equipment for $ 63,000. The equipment has a li
    15·1 answer
  • You want to have $60,000 in your savings account 12 years from now, and you’re prepared to make equal annual deposits into the a
    7·1 answer
  • Changes in supply are reflected in______of the supply curve, while changes in the quantity supplied are reflected in______along
    9·1 answer
  • If fixed costs are $256,000, the unit selling price is $38, and the unit variable costs are $22, what are the old and new break-
    12·2 answers
  • Arkensland is a highly industrialized countr. Prices have been steadily increasing over the last few years and inflation reached
    12·1 answer
  • When most consumers and firms reduce spending only because they expect other consumers and firms to reduce spending and a recess
    6·1 answer
  • Suppose the market for hamburgers is unregulated. That is, hamburger prices are free to adjust based on the forces of supply and
    11·1 answer
  • Drake is applying for a business loan on behalf of its company. before applying for the said loan, he draws up a road map of the
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!