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ivann1987 [24]
3 years ago
7

Tustin Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 68 Manuf

acturing costs: Variable manufacturing cost per unit produced: Direct materials $ 10 Direct labor $ 6 Variable manufacturing overhead $ 4 Fixed manufacturing overhead per year $ 220,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold $ 6 Fixed selling and administrative expense per year $ 61,000 Year 1 Year 2 Units in beginning inventory 0 1,000 Units produced during the year 11,000 10,000 Units sold during the year 10,000 7,000 Units in ending inventory 1,000 4,000 The net operating income (loss) under variable costing in Year 1 is closest to:
Business
1 answer:
riadik2000 [5.3K]3 years ago
5 0

Answer:

The net operating income under variable costing is $139,000

Explanation:

                                 Tustin Corporation

            Contribution Margin Income Statement for 1st year

                                                                         Amount

Revenue                                                    $680,000

(10,000 * $68)

Less: Variable Expense

Direct Material =                                             $100,000

(10,000 * $10)

Direct Labor=                                               $60,000

(10,000 * $6)

Variable manufacturing overhead                     $40,000

(10,000 * $4)

Variable selling and administrative                   <u>$60,000</u>  

expense (10,000 * $6)

Contribution                                                       $420,000

Less: Fixed Costs

Fixed Manufacturing overhead                       $220,000

Fixed selling and administrative                         $61,000

overhead  

Net Income                                                           $139,000

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viva [34]

Answer:

  1. Lena has a ORDINARY GAIN of $1,500 from the sale of the first equipment.
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Explanation:

Lena sold the first equipment for $17,000, and that resulted in an ordinary gain = $17,000 - $15,500 = $1,500. This gain was due to a §1245 depreciation recapture.

Lena sold the second equipment for $5,500, and that resulted in an ordinary loss (§1231 loss) = $5,500 - $8,200 = $2,700.

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Answer:

the amount that should be show more money for spending is $80

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Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positivel
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Answer:

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Question 13 options:

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. b) Portfolio AB has a standard deviation of 20%.

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Answer: A spiff

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Spiff is actually a form of slang to refer to someone who receives an incentive for selling an item to customers on behalf of a vendor. This motivates the seller to push the vendor's items (sell them) onto its (seller's) customers. The incentive usually comes in the form of a bonus and is paid out immediately.

In this question the gourmet mustard manufacturer is the vendor, and Beverly is the seller. Beverly receives $1 for every jar of mustard she sells, which is the bonus. This motivates her to keep selling these jars on behalf of the manufacturer (vendor). This payment is immediate, as she receives it everytime she sells a jar of mustard.

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