All categories

2 years ago

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

Business

1 answer:

siniylev [52]2 years ago

4 0

Answer:

$270,000

Explanation:

Calculation for The gross profit

Using this formula

Gross profit = Sales + Cosing stock - Purchases

Let plug in the formula

Gross profit =(45,000*15) +

(450,000/50,000)*5,000 - 450,000

Gross profit =$675,000+(9*5,000)-450,000

Gross profit =$675,000+$45,000-450,000

Gross profit = $270,000

Therefore The gross profit is $270,000

You might be interested in

Tinker Company reported sales revenue of $500,000 and total expenses of $450,000 (including depreciation) for the year ended Dec

uranmaximum [27]

Answer:

Net Cash inflow from operating activities $67,000

Explanation:

The computation of the net cash flow from operating activities is shown below:

Net Income ($500,000 - $450,000) $50,000

Add: Depreciation $10,000

Add: Decrease in account receivable $5,000

Less: Increase in inventory ($4,000)

Add: Increase in account payable $6,000

Net Cash inflow from operating activities $67,000

4 0

3 years ago

Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from opera

-Dominant- [34]

Answer:

Option D) The company's depreciation and amortization expenses declined

Explanation:

When Aubey Aircraft´s depreciation and amortization decrease, it has less cost of sales and an improvement in the Gross Margin, hence, in the Net Income, but this enhancement in the Net Income has an opposite effect on Net Cash Flow because less depreciation and amortization means less Net Cash Flow,

Net Cash Flow it's defined by Net Income plus depreciation and amortization, a less Depreciation means less Net Cash Flow.

8 0

3 years ago

According to the theory of comparative advantage, potential world production is greater with unrestricted free trade than it is

dimaraw [331]

Answer:

The answer is true

Explanation:

The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.

8 0

3 years ago

Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,360,000 (240,00

mixer [17]

Answer:

Option (C) is correct.

Explanation:

Given that,

Estimated overhead cost = $1,540,000

Estimated direct labors (in dollars) = $3,360,000

Estimated direct labor hours = 240,000

Actual overhead cost = $1,240,000

Predetermined overhead rate:

= Estimated overhead cost ÷ Estimated direct labor hours

= $1,540,000 ÷ 240,000

= $6.42 per direct labor hour

6 0

3 years ago

A company pays down the account's payable account with $2000 cash. What effect does this transaction have on the asset account?

N76 [4]

Answer:

the right is answer is B.

Explanation:

The account decreases because when you take money you are making a debit action which produces this effect of decrease in the asset.

3 0

3 years ago