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weeeeeb [17]
3 years ago
6

In January, Gamma Company sold 2,000 units of its product at a price of $20 per unit. Its COGS (cost of goods sold) for January

totaled $20,000, and its SG&A (selling, general and administrative) costs totaled $16,000. If Gamma Company is expecting to sell 2,200 units in February, how much is the expected profit for February? (assume that the sales price will not change, and that 2,200 units is in the relevant range
Business
1 answer:
Mashcka [7]3 years ago
7 0

Answer:

The expected profit for February is $6,000

Explanation:

It is assumed that the COGS is the variable cost and SG&A is the fixed cost.

First we need to determine the sale value of February

Sales = Selling Price x Number of Units sold = $20 per unit x 2,200 = $44,000

Now Calculate the COGS

COGS = Numbers of units sold x COGS per unit = 2,200 units x $20,000 / 2,000 = $22,000

As the SG&A is assumed to be a fixed cost, so it will remains the same.

Now calculate the Expected Profit for February

Profit = Sales - COGS - SG&A = $44,000 - $22,000 - $16,000 = $6,000

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antoniya [11.8K]

Answer:

The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.

This is because it is temporary and people in the affected sector could opt for jobs in other performing sectors of the economy.

Explanation:

Suppose the world price of cotton falls substantially, the following scenario will ensue.

The demand for labor among cotton-producing firms in Texas will reduce .

The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will also decline .

The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.

Frictional unemployment is seasonal employment that could occur when there is no demand or work period is completed unlike structural unemployment that can last for long.

It is a temporary unemployment situation because workers in the cotton industry could opt for jobs in other performing sectors of the economy.

5 0
3 years ago
Botosan Factory has budgeted factory overhead for the year at $453,120, and budgeted direct labor hours for the year are 384,000
Sloan [31]

Answer: $412,292

Explanation:

First compute Overhead Absorption Rate = Budgeted Overhead divided by Budgeted Activity Level

In this question the activity level is Direct Labour Hours (DLH) which is the basis for allocating overhead.

budgeted factory overhead for the year at $453,120, and budgeted direct labor hours for the year are 384,000.

$453,120 divided by 384,000 DLH =$1.18

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$1.18*349400= $412,292

This is the amount to be allocated to may

7 0
3 years ago
Read 2 more answers
An investment costs $5,200 today. this investment is expected to produce annual cash flows of $2,100, $1,300, $1,800 and $1,200,
worty [1.4K]
5,200 + 21,000 + 1,300 + 1,200 = 10,400 ÷ 10 totally investment 1,040 %
3 0
3 years ago
Which of the following would not be a part of a company's human resources?
pychu [463]
The answer is D. All would be included as human resources
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3 years ago
"Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 10%, and the risk-free rate o
Kaylis [27]

Answer:

4.5%

Explanation:

Stock R (Beta) = 1.5

Stock S  (Beta) = 0.75

Expected rate of return on an average stock (Rm)= 10%

Risk free rate (Rf) = 4%

Required Return (Re) = Rf +(Rm-Rf) B

Required Return = 0.04 + (0.10-0.04) B

Required Return = 0.04 + 0.06B

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= 13% - 8.5%

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7 0
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