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
mixer [17]
3 years ago
7

GPB's contribution margin ratio is 85% ( or .85) and its fixed monthly expenses are $63,000. Assume that the cost structure of G

PB does not change.
Required:
Estimate of the company's net operating income in a month when sales are $103,000.
Business
1 answer:
KIM [24]3 years ago
7 0

Answer:

Net income= $24,550

Explanation:

The contribution margin ratio is <u>the result of deducting from sales all the variable costs, </u>expressed as a<u> percentage.</u>

<u></u>

<u>First, we need to calculate the total contribution margin:</u>

Total contribution margin= sales*contribution margin ratio

Total contribution margin= 103,000*0.85

Total contribution margin= $87,550

<u>Now, the net income:</u>

Net income= 87,550 - 63,000

Net income= $24,550

You might be interested in
What is likely to lead to a decrease in the price of a company's stock?
rodikova [14]
If the company's annual profits decrease (the amount of cash they make per year) then that would lead to a decrease in the price of a company's stock.
4 0
2 years ago
A pair of shoes is a example of ____ someone might purchase it is not a service
aniked [119]
Style either or respect
5 0
2 years ago
Gillette charges a fairly low price for their razors​ (relative to​ costs) and a high price for razor blades. they are using a s
stira [4]
A. ​captive-product pricing

Gillette charges a fairly low price for their razors​ (relative to​ costs) and a high price for razor blades. they are using a strategy of​ __________ pricing.
4 0
3 years ago
In a properly designed internal accounting control system, the same employee should not be permitted to:
yawa3891 [41]
In a business world, segregation of duties is important to have a sound internal control.  The employee handing cash/check collection is prohibited from updating its customer's subsidiary ledger and recording of transactions in the books.  This will eliminate fraud and misappropriation of funds.  
8 0
3 years ago
How has the great recession of 2008dash–2009 affected marketers in terms of consumer​ attitudes?
Black_prince [1.1K]
The answer is: <span>Consumers are showing an enthusiasm for frugality(cautious in spending)
During the great recession of 2008, the value of investments that most people have been significantly dropped. To ensure their financial safety, Consumer attitudes reacted into cautious spending because they're not sure when the market will recover from the situation.</span>
5 0
3 years ago
Other questions:
  • Katie Inc. reported net income of $171,000 for the current year and paid dividends of $26,000 on common stock. It also has 10,00
    13·1 answer
  • Nearly all small businesses have consensus buying centers. <br> a. True <br> b. False
    11·1 answer
  • Jetta production cost in 2002 and 2003 was 12,000 Euro per Jetta. Jettas were sold in US at $13,000 in 2002 and 2003. Forward he
    14·1 answer
  • Cindy operates Birds-R-Us, a small store manufacturing and selling 200 bird feeders per month. Cindy's monthly total fixed costs
    6·1 answer
  • If the marginal propensity to consume (mpc) is 0.9, the spending multiplier is _____, the tax multiplier is ______, and the bala
    12·1 answer
  • Addresses do not change if you copy them to a different cell
    6·1 answer
  • true or false A demographic of people most likely to be interested in your product or service is one of your target markets.
    11·1 answer
  • By attending to the aesthetic appeal of Internet ___________, we can target niche groups that are often elusive, when it comes t
    6·1 answer
  • Given a fixed supply of money and a downward sloping aggregate demand curve, an increase in money demand will ________ the price
    11·1 answer
  • What is a wrong reason for wanting to start your own business?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!