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
emmasim [6.3K]
3 years ago
4

The Corner Market has fixed costs of $1,600, depreciation of $1,200, a tax rate of 35%, and a cost of capital of 12%. Variable c

osts represent 67% of sales. What minimum level of sales must the market obtain to avoid a net loss on its income statement?
Business
1 answer:
Inessa05 [86]3 years ago
5 0

Answer:

$8,484.85

Explanation:

Fixed costs = $1,600

Depreciation = $1,200

Tax rate = 35%

Cost of capital = 12%

Variable costs = 67% of sales

Desired sales = (Fixed cost + Depreciation) / Contribution ratio

Desired sales = ($1,600 + $1,200) / (1 - 67%)

Desired sales = $2,800 / 0.33

Desired sales = 8484.84848485

Desired sales = $8,484.85

The minimum level of sales that Corner Market must obtain to avoid a net loss on its income statement is $8,484.85.

You might be interested in
What type of arrangement(s), if any, would avoid double taxation for Wendall's and Shirley's endeavor? Choose the best answer if
musickatia [10]

Answer:

An s corporation or a limited liability company, but not a corporation.

Explanation:

5 0
3 years ago
The ending retained earnigns balacne is reported on both the retaiend earnigns stastaemnt and the balacne sheet.
Rudiy27
I think it’s a, sorry if I’m wrong though
7 0
3 years ago
Select three of the following that are listed as sensitive sites in the location and transportation (LT) category that should be
Eduardwww [97]

Answer:

The three sites that are listed as sensitive sites in the location and transportation (LT) category that should be built on are;

1. Wetlands

2. Prime farmland

3. Flood plains

Explanation:

The location and transportation category of credits is based on where the project is located and the accessibility to public transport. Accessibility is looked at in terms of how flexible the area fits in with different modes of public transport. Either by bus, or by train. These credits are awarded based on a number of factors that promotes environmental conservation, accessibility to public transport, and even public parks. The main goal of having this kind of rating systems is in to encourage green building systems. For example, by making public transport easily accessible to the public, the need for personal cars is greatly reduces. This in turn reduces the level of carbon emissions from the cars.

An attempt has also been made to protect building in sensitive locations like;

a. Wetlands: a wetland is distinct area where that is seasonally or permanently flooded with water. Building in such areas should be limited since the water is essential for human survival. Water in such areas also supports various Eco-systems and thus should not be tampered with. Building near wetlands also promotes pollution and thus should be avoided.

b. Prime farmland: this is a designated place by the United States department of agriculture that has the best physical and chemical environmental conditions for agricultural activities. They also need to be protected.

c. Floodplains: this is a low-lying area that forms part of a river basin where the river stretches out across the banks during flooding. Building in such areas should be prohibited since they can cause collapse and loss of lives. Buildings in such areas are also prone to pollution and thus should be avoided.

6 0
3 years ago
Advertising Costs $ 12 comma 000 Indirect Labor 7 comma 000 ​CEO's Salary 460 comma 000 Direct Labor 54 comma 000 Indirect Mater
sineoko [7]

Answer:

$510,130

Explanation:

Costs can be classified into two categories: Product Costs and Period Costs. Product costs are the manufacturing costs that are incurred in the production of goods and services. Under absorption costing, product costs include direct materials, direct labor, indirect materials, indirect labor, and other factory overhead. These costs are capitalized and expensed out when related goods and services are sold out.

On the other hand, period costs are selling & administrative expenses. These costs are never capitalized and expensed out in the statement of profit or loss as soon as incurred. Examples of period costs are advertisement expenses, depreciation expenses (not related to factory), sales commissions, administrative salaries and wages.

<u>Calculation of Period Costs</u>

Advertising costs                                                           $12,000

CEO's salary                                                                  460,000

Delivery vehicle depreciation                                            1,230

Administrative wages and salaries                                 36,900

Total Period Costs                                                        $510,130

4 0
4 years ago
Read 2 more answers
A fee paid by a borrower to the lender for the use of borrowed money
Stolb23 [73]

A fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal (original loan amount). A debt evidenced by a "note," which specifies the principal amount, interest rate and date of repayment.

5 0
3 years ago
Other questions:
  • The first step of the budgeting process is to:
    12·1 answer
  • Thirty-one days before filing a petition in bankruptcy, Gavin transfers property and makes payments that favor one creditor over
    9·2 answers
  • Countries which export more than they import (i.e., which have a surplus in their balance of trade) still will have a $0 balance
    14·1 answer
  • Suppose you are working for a firm producing cotton balls – an industry for which there are many different firms producing an id
    10·1 answer
  • Determine whether each of the following topics would more likely be studied in microeconomics or microeconomics.
    8·1 answer
  • Shirley's time sitting at her desk was interrupted when the human resources manager burst into her office with a particularly na
    11·1 answer
  • According to the video, which food safety regulations have been created by the passage of the Food Safety Modernization Act? Che
    8·2 answers
  • ___ should not be included on the resume
    14·2 answers
  • (Assumptions, Principles, and Constraint) Presented below are the assumptions, principles, and
    8·1 answer
  • Acc 450 when financial statements are affected by a material departure from generally accepted accounting principles, the audito
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!