Answer:
Increase by $37,100.
It will accept any time the price is above $43 with the condition it will not incur in additional fixed cost.
$63. is the sales price that generates 106,000 dollar of operating income
Explanation:
As the units will not inccur in any additional fixed cost we should check for the contribution margin this units will provide:
50 dollars - 43 dollar of variable cost = 7 dollars
5,300 saws x $7 = 37,100
The sales reveues will increase by that amount.
(5,300 x $43 dollars each in cost + 106,000 contribution )/5,300 = sales price
sales price = 63
Answer:
The gross profit for Adams Company at the end of the first quarter is $1,000
Explanation:
Since in the question it is given that Job 356 and Job 357 is sold at a profit of $500 each. So, for these two the gross profit would be
= Job 356 profit + Job 357 profit
= $500 + $500
= $1,000
The Jobs 356, 357, 358, and 359 were completed which means Job No 360 is in work in process , and Job 358,359,360 have no profit that means they are in the inventory whereas Job 356 and 357 are in sale part.
Therefore, the gross profit for Adams Company at the end of the first quarter is $1,000
already answered this question for you in a previous post.
Answer:
$3,460
Explanation:
Gross tax liability $2,120
Less non-refundable personal tax credit $2,880
Refundable personal tax credit $760
Hence:
Income taxes withheld $2,700+ $760
=$3,460
Luke’s non refundable personal credit reduces his gross tax to zero ($2120– 2,880) and $760of the unused credit expires unused.
The $1,740 unused business tax credit carries over and Luke receives a refund of $3,460($760 refundable credit + $2,700 taxes he paid)
Luke’s net tax due or refund is $3,460
