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tangare [24]
3 years ago
15

Variable costs as a percentage of sales for Lemon Inc. are 71%, current sales are $551,000, and fixed costs are $207,000. How mu

ch will operating income change if sales increase by $37,600? a.$10,904 increase b.$26,696 decrease c.$26,696 increase d.$10,904 decrease
Business
1 answer:
MAVERICK [17]3 years ago
7 0

Answer: a.$10,904 increase

Explanation:

Operating income before sales increase:

= Sales - Variable costs - Fixed costs

= 551,000 - (71% * 551,000) - 207,000

= -$47,210

Operating income after sales increase:

Sales increases to:

= 551,000 + 37,600

= $588,600

= 588,600 - (71% * 588,600) - 207,000

= -$36,306

Difference:

= -47,210 - (-36,306)

= Increase of $10,904

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Vaughn Manufacturing started business in 2012 by issuing 209000 shares of $21 par common stock for $28 each. In 2017, 25500 of t
marshall27 [118]

Answer:

A. $153,000

Explanation:

The Journal Entry is shown below:-

Property Dr,                                          $1,173,000

          To Treasure stock                     $1,020,000

           To additional paid-in-capital    $153,000

The computation is given below:-

For Property

= 25,500 × $46

= $1,173,000

For Treasure stock

= 25,500 × $40

= $1,020,000

For Additional paid-in-capital

= $1,173,000 - $1,020,000

= $153,000

6 0
3 years ago
Employees of a hotel are short-staffed in the kitchen during a banquet event. The food will not be served on time, therefore thr
marta [7]
All of them could work together by saving time helping each other cooking and serving food
4 0
3 years ago
Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growt
mr_godi [17]

Answer:

$69.47

Explanation:

D1 = ($1.45*1.20) = $1.7

D2 = ($1.7*1.20) = $2.04

D3 = ($2.04*1.20) = $2.45

Value after year 3 = (D3*Growth Rate) / (Required rate-Growth Rate)

Value after year 3 = ($2.45*1.08) / 0.11-0.08

Value after year 3 = $2.646 / 0.03

Value after year 3 = $88.20

Current share price = Future dividend and value*Present value of discounting factor(rate%,time)

Current share price = $1.7/1.11 + $2.04/(1.11)^2 + $2.45/(1.11)^3 + $88.20/(1.11)^3

Current share price = $1.5315315 + $1.65571 + $1.7914189 + $64.49107

Current share price = $69.4697304

Current share price = $69.47

8 0
3 years ago
A worthless security had a holding period of six months when it became worthless on December 10, 2020. The investor who had owne
mariarad [96]

Answer: B. The investor has a short-term capital loss of $20,000.

Explanation:

A short-term loss occurs when a deficit is realized when there's a sale of an asset which has been held by the person for a period of one year or less.

In this case, since the security was worthless, it's a loss and was also help for six months which is less than one year, then it's a short term capital loss.

Therefore, the correct option is B

6 0
3 years ago
Emily included the following passage in her report: "Other mid-price restaurants in the Chicago area have achieved phenomenal su
Ratling [72]

Answer:

Change "achieved phenomenal success" to "improved customer satisfaction."

Explanation:

This is because it has to do with customers services and from an end customer’s point of view to evaluate current perspectives, emerging needs and preferences, and it's impact on business outcomes.

8 0
3 years ago
Read 2 more answers
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