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3 years ago

Diamond Company has three product lines, A, B, and C. The following financial information is available:

Business

1 answer:

grin007 [14]3 years ago

3 0

,Answer:

See below

Explanation:

A B C

Sales revenue

$70,000 $145,000 $32,000

Variable costs

($42,000) ($77,000) ($20,000)

Contribution margin

$28,000 $68,000 $12,000

Fixed costs

Operating income loss

The total operating income is

= $16,700 + $34,500 + ($950)

= $50,250

Should the fixed cost of C be eliminated, the operating income/(loss) of C

= $6,000 - $950

= $5,050

This is the net increase in the total operating income

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Identify the two accounts affected by each of the following transactions and indicate whether each account is debited or credite

Ksenya-84 [330]

Answer:

Cash 50,000 debit

Jhon David Capital Account credit

account receivable 7,000 debit

sales revenue 7,000 credit

Inventory 10,000 debit

cash 10,000 credit

salaries expense 5,000 debit

cash 5,000 credit

Explanation:

Jhon contribution must enter the accounting under his name.

it is an equity account so it increases from credit.

while the cash he invests is an asset. Asset increase from debit

the billed good will be sales revenue, revenue increase from credit.

the bill give us the right to claim that amount to our customer. this creates an asset. As stated before, it increases from debit

the inventory purchased is an asset, increase from debit

the cash we use is an asset being traded. it is leaving the business, we have to decrease the cash asset. it will be credit

the salaries are an expense as the amount would not generate income in the future.

the cash used decrease the amount of cash asset, so it will be credit like in previous question

7 0

4 years ago

Someone who wants credentials in skilled training, but in less time than a four- year degree should consider...

Pavlova-9 [17]

Answer:

Career or technical education.

Explanation:

Someone who wants credentials in skilled training, but in less time than a four- year degree should consider Career or technical education.

A technical education course is solely based on providing skilled training which will help the student to learn the practicalities in a shorter period of time.

They are focused on a specific kind of skilled training which you can use in your career. Technical education is also known by the name of a diploma which can be completed in a period of 2 years or even in a period of months.

4 0

3 years ago

Bhascar was recently named general manager of a newly created business unit of a multidivisional company. his first order of bus

wel

The answer is c. Bhascar should spend the majority of his time concerned with the human resources operations of his business unit, focusing on the employee team. He is responsible to make the team better and that every employees are have the skills and attitude to work with the business in order for it to succeed.

4 0

3 years ago

Nicolas Enterprises sells a product for $67 per unit. The variable cost is $33 per unit, while fixed costs are $231,200. Determi

NARA [144]

Answer:

a)Break-even point = 6,800 units

b) Break-even point =5780 units

Explanation:

Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.

The break-even point is calculated as

Units to achieve target profit = (Total general fixed cost for the period)/ contribution per unit

Contribution per unit = Selling Price - Variable cost

Contribution per unit = 67 - 33 = 34

Fixed cost =231,200

So the units requited to achieve break-even point:

Break-even point = 231,200/34 = 6,800 units

Break-even point = 6,800 units

b) If the selling price wete increased to 73

The break-even point = 231,200/ (73- 33) = 5,780 units

Break-even point =5780 units

5 0

3 years ago

Kirk Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint pr

NARA [144]

Answer:

Spock

Incremental Profit or Loss = -$20,000 --- Loss

Uhura;

Incremental Profit or Loss = $15,000 ---Profit

For Sulu;

Incremental Profit or Loss = $95,000 ---Profit

Explanation:

Given

Sales Value at Split-Off Point Allocated Joint Costs Cost to Process Further Sales Value of Processed Product

Spock $210,000 $40,000 $110,000 $300,000

Uhura 300,000 60,000 85,000 400,000

Sulu 455,000 80,000 250,000 800,000

Calculating the incremental profit or loss that each of the three joint products.

Incremental Profit or Loss is calculated by subtracting profit under processing from the current profits.

i.e.

Incremental Profit or Loss = Profit under processing - Current Profit

Currect profits is calculated as

Sales value at split-off point- allocated joint costs

Profit under processing is calculated as

Sales value of processed product- allocated joint cost - further processing cost

For Spock;

Current Profit = $210,000 - $40,000 = $170,000

Profit Under Processing = $300,000 - $40,000 - $110,000 = $150,000

Incremental Profit or Loss = $150,000 - $170,000

Incremental Profit or Loss = -$20,000 --- Loss

For Uhura;

Current Profit = $300,000 - $60,000 = $240,000

Profit Under Processing = $400,000 - $60,000 - $85,000 = $255,000

Incremental Profit or Loss = $255,000 - $240,000

Incremental Profit or Loss = $15,000 ---Profit

For Sulu;

Current Profit = $455,000 - $80,000 = $375,000

Profit Under Processing = $800,000 - $80,000 - $250,000 = $470,000

Incremental Profit or Loss = $470,000 - $375,000

Incremental Profit or Loss = $95,000 ---Profit

4 0

4 years ago

Read 2 more answers