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Natalka [10]
3 years ago
7

Remmel Corporation has provided the following contribution format income statement. Assume that the following information is wit

hin the relevant range. Sales (6,000 units) $ 300,000 Variable expenses 240,000 Contribution margin 60,000 Fixed expenses 59,000 Net operating income $ 1,000 If the selling price increases by $3 per unit and the sales volume decreases by 400 units, the net operating income would be closest to:
Business
1 answer:
dimaraw [331]3 years ago
6 0

Answer:

$13,800

Explanation:

Calculation for what the net operating income would be closest to:

First step is to calculate the Unit contribution margin

Selling price per unit $50

($300,000 ÷ 6,000 units)

Less Variable cost per unit $40

($240,000 ÷ 6,000 units)

Unit contribution margin $10

Selling price $53 per unit

($50 per unit + $3 per unit)

Variable cost per price $40 per unit

Unit contribution margin $13 per unit

Now let calculate the net operating income

Contribution margin $72,800

(Unit contribution margin $13 per unit*Unit sales(6,000 units − 400 units)

Less Fixed expenses 59,000

Net operating income$13,800

Therefore the net operating income would be closest to:$13,800

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A food manufacturer reports the following for two of its divisions for a recent year.
Over [174]

Answer and Explanation:

1. Return on investment is

= Operating Income ÷ Average invested Assets

here, average invested assets is

= (Invested assets, beginning + Invested assets, ending) ÷ 2

For Beverage Division

= $349 ÷ (($2,662 + $2,593) ÷ 2)

= $349 ÷ $2,628

= 13.28%

For Cheese Division

= $634 ÷ (($4,455 + $4,400) ÷ 2)

= $634 ÷ $4,428

= 14.32%

2. Profit margin = (Operating income ÷ sales) × 100

For Beverage Division

= ($349 ÷ $2,681) × 100

= 13.02%

For Cheese Division

= ($634 ÷ $3,925) × 100

= 16.15%

3. Investment turnover = Sales ÷ Average Operating Assets

For Beverage Division

= $2,681 ÷ (($2,662 + $2,593) ÷ 2)

= $2,681 ÷ $2,628

= 1.02 times

For Cheese Division, it would be

= $3,925 ÷ (($4,455 + $4,400) ÷ 2)

= $3,925 ÷ $4,428

= 0.89 times

6 0
3 years ago
Prior to recording adjusting entries, the Office Supplies account had a $363 debit balance. A physical count of the supplies sho
drek231 [11]

Answer:

Explanation:

The adjusting entry is shown below:

Office supplies expense A/c Dr $257

      To Office supplies                                  $257

(Being adjusted entry recorded in respect of office supplies)

Since in the question it is given that, the debit balance of office supply is $363 and the physical count show $107 unused supplies which mean it is of no use. So, the actual amount of office supplies would be calculated by applying an equation which is shown below:

= Office supplies debit balance - unused office supplies

= $363 - $107

= $257

Moreover, the office supply is shown in the balance sheet under the assets account. And, to find out the correct value of the office supply we debit the expense account and credit the asset account.

7 0
3 years ago
Sony introduces a new compact music player to compete with Apple's iPod that carries a two-year warranty against manufacturer's
iris [78.8K]

Answer: $651,000

Explanation:

From the above question, Apple's iPod carries a two-year warranty against manufacturer's defects.

warranty costs are expected to be approximately 3% of sales.

Total sales are $30.7 million, and actual warranty expenditures are $270,000.

Total warranty cost = $30.7 million x 3% = $921,000

During the 1st year only $270,000 of warranty expenses was made.

Therefore the company will carry as liability at the end of the year a total of $921,000 - $270,000 = $651,000

3 0
3 years ago
Which of the following statement is incorrect about the​ mission? A. The mission statement provides boundaries and focus for org
34kurt

Answer: OPTION E

Explanation: Mission refers to the ultimate goal that a business organisation has. It is the end point towards which all the procedures and activities of the business is to be carried out.

It is the future determining factor of a business. In nowadays the business is operating at a very high level with different functional area. These areas have different activities to perform and are useful in different ways by the organisation.

Thus, every functional area could have its different mission to complete.

7 0
3 years ago
The indirect financial and nonfinancial payments employees receive for continuing their employment with a company are called ___
gayaneshka [121]
Benefits is the correct answer
3 0
3 years ago
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