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
Gala2k [10]
3 years ago
13

Sheffield Company had sales in 2019 of $1,842,400 on 65,800 units. Variable costs totaled $1,184,400, and fixed costs totaled $4

98,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3.60). However, to process the new raw material, fixed operating costs will increase by $93,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2020, assuming the changes have not been made. SHEFFIELD COMPANY CVP Income Statement Total Per Unit $ $ $ $
Business
1 answer:
vlada-n [284]3 years ago
5 0

Answer:

Assuming that no changes happened, 2020 sales and expenses should be similar to 2019's:

                                       Total                        Per unit

Total sales                   $1,842,400                   $28

Variables costs           <u>($1,184,400)</u>                  <u>($18)</u>

Contribution margin    $658,000                    $10

Fixed costs                 <u>($498,000)</u>                  <u>($7.57)</u>

Operating income       $160,000                    $2.43

You might be interested in
Which type of restaurant hires trained chefs to prepare food to order? _________ restaurants hire trained chefs to create ______
alekssr [168]
The answer is fine dining and good quality
7 0
3 years ago
Read 2 more answers
If the inflation rate averages 3 percent over the next 8 years, the expected cost of services for any year in that time frame is
lys-0071 [83]

Answer:

The expected cost 8 years from now = $13.87

Explanation:

If the inflation rate averages 3 percent yearly over the next 8 years, the expected cost of services for any year in that time frame is given by

C (x) = K (1.03)ˣ

where

K = present cost = $10.95

x = time in years = 8

So, the expected cost of a haircut 8 years from now would be

C(x=8) = 10.95 (1.03)⁸ = $13.87

Hope this Helps!!!!

4 0
3 years ago
Investors are willing to purchase stocks having high P/E ratios because:
skelet666 [1.2K]

Answer:

D. They expect these shares to have greater growth opportunities.

Explanation: P/E(price to earning) ratio is a ratio used in the stocks and other marketable securities to determine the price of the shares of a particular Company in relationship with the annual net income of the company per share.

A HIGHER PRICE TO EARNING RATIO INDICATES THAT THE COMPANY INVOLVED IS EFFICIENTLY UTILIZING ITS RESOURCES IN ORDER TO GENERATE PROFIT,IT ALSO SHOWS THAT THEIR IS HIGH DEMAND FOR THE COMPANY'S SHARES BECAUSE INVESTORS TRUST IN THE COMPANY'S ABILITY TO GROW AND MAKE PROFIT.

4 0
3 years ago
The country of Lilliput has low unemployment and high consumer spending, and small businesses are thriving. However, prices are
cluponka [151]

Raise the income tax, which gives citizens less money to spend, and buy more services from civilian - owned businesses, which creates more jobs.

<u>Explanation:</u>

Expansion happens when an economy becomes because of expanded spending. At the point when this occurs, costs rise and the money inside the economy is worth short of what it was previously. The cash basically won't purchase as much as it would previously. At the point when a cash is worth less, its swapping scale debilitates when contrasted with different monetary standards.  

There are numerous strategies used to control swelling; some function admirably, while others may have harming impacts. For instance, controlling swelling through pay and value controls can cause a downturn and cause work misfortunes. One well known strategy for controlling swelling is through a contractionary financial arrangement.

The objective of a contractionary strategy is to lessen the cash supply inside an economy by diminishing security costs and expanding loan fees. This diminishes going through in light of the fact that when there is less cash to go around: the individuals who have cash need to keep it and spare it, rather than spending it. It additionally implies there is less accessible credit, which can diminish spending. Diminishing spending is significant during expansion since it helps stop monetary development and, thus, the pace of swelling.  

There are three fundamental instruments to complete a contractionary approach. The first is to build financing costs through the national bank. On account of the U.S., that is the Federal Reserve. The Fed Funds Rate is the rate at which banks acquire cash from the legislature, yet so as to bring in cash, they should loan it at higher rates.1

5 0
3 years ago
Your auto insurance policy has a 200 monthly premiumand a 700 deductible. what is the maximum you will have to pay out of pocket
Alexus [3.1K]
$700 at any given time, but that is presuming that you have paid your monthly premiums every month without fail until the accident occurs.
4 0
3 years ago
Other questions:
  • Danny recently started revising his résumé after his managers failed to give him a pay raise that he felt would rightly compensa
    14·1 answer
  • A ________ is a list of duties and capabilities required for a particular job.
    13·1 answer
  • What is the main responsibility of the press secretary?
    14·2 answers
  • The Rejuvo Corp. manufactures granite countertop cleaner and polish. Quarterly sales Q is a random variable with a mean of 25,00
    11·1 answer
  • Which of the following is the correct statement about fixed costs? The fixed cost per unit will decrease when volume increases.
    5·1 answer
  • Strict product liability is the doctrine that the seller of a product has legal responsibilities to compensate the user of that
    6·1 answer
  • The capability-building process:_______.a. requires first developing the ability to do something, however imperfectly or ineffic
    12·1 answer
  • Any excess of cost over fair value was attirbuted to goodwill, which has not been impaired. Emery Co. reported net income of $40
    15·1 answer
  • You have $100,000 available to invest. The risk-free rate, as well as your borrowing rate, is 4%. The risky portfolio has an exp
    11·1 answer
  • 3. Analyze. Explain how scarcity is related
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!