2. Happy Selling Company's salaries to sales agents amounted to Php 10,000. Salaries of accountants

A company has a net sales of 847000 and cost of goods sold of 561500. Its net income is 101200. The company's gross margin and o

SVETLANKA909090 [29]

Answer:

Gross profit margin = 33.7%

Operating expenses = $184,300

Explanation:

The gross margin is the percentage of sales value is earned as gross profit.

Gross profit = Sales - cost of goods sold

=847,000 -561,500 =$285,500

Gross profit margin = (Sales - cost of goods sold)/sales × 100

= (847,000 -561,500/847,000) × 100

= 33.7%

Operating expenses represent the amount of indirect cost expenditures which cannot be traced to the cost of the goods sold . This include administrative expenses like rent, insurance e.t.c

Operating expense = Gross profit - Net income

= (847,000 -561,500) - 101,200

= 184,300

5 0

3 years ago

An apparel manufacturing plant has estimated the variable cost to be $2.40 per unit. Fixed costs are $2,000,000 per year. Forty

marta [7]

Answer:

BEP units: 42,017

BEP dollars: 2,100,850

unit cost at 100,000 units produced: 22.40 dollars

operating profit : 1,656,000

Explanation:

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

50 - 2.4 = 47.6 contirbution margin per unit

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

2,000,000/47.6 = 42.016,80 BEP units

BEP units x sales price = BEP dollars

42,017 x 50 = 2,100,850

(B)

fixed cosy/ units produced = fixed cost per unit

2,000,000/ 100,000 = 20 fixed cost per unit

fixed cost + variable cost = total cost

20 + 2.40 = 22.4

(C)

There are 40% units sold at the preferred customer at cost

So we sale at gain only 60% of the units:

100,000 units x 60% x 50 = 3,000,000

100,000 units x 40% x 22.40 = 896,000

Total revenue 3,896,000

Cost: 100,000 x 22.40 (2,240,000)

operating profit 1,656,000

4 0

3 years ago

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 37,000 shares authorized, 19,2

kipiarov [429]

Answer:

E. Debit Retained Earnings $7,400; credit Common Dividends Payable $7,400.

Explanation:

The Journal entry is shown below:-

Retained earnings Dr, $7,400 (14,800 × $0.50)

To Common dividend Payable $7,400

(Being dividend declaration is recorded)

Here to record the dividend declaration we simply debited the retained earnings as it decreased the stockholder equity and credited the common dividends payable as it increased the liability

So the correct option is D.

4 0

3 years ago

The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $80,000 a

mezya [45]

Answer:

Jacobs will earn $1,080,000

Explanation:

The earnings of the work factor are made up of two factors: Transfer Earnings + Economic Rents.

Transfer earnings are defined as the minimum required amount that a company must pay its workers to keep them in the workplace. Below this amount, the worker will leave his job. In this case, the Transfer Earnings are $ 80,000, which is the base salary of every designer.

On the other hand, the Economic Rents are the additional income that the worker receives and that is above the minimum level they need to supply his work (In this case, the additional income is given by Jacobs' special ability). In numerical terms, the Economics Rents amount is equivalent to the difference between the earnings obtained by the Jacobs company and the earnings obtained by the other companies.

That is: 1,500,000 - 500,000 = 1,000,000.

Therefore Jacobs salary is equivalent to 80,000 + 1,000,000 = 1,080,000.

From this, it can be deduced that approximately 92% of Jacobs' salary is equivalent to Economic Rents. From the theoretical point of view, this makes sense, because the demand for designers (which is a highly qualified profession) is very inelastic, and the more inelastic the greater the proportion of Economic Rents as part of the salary. In the annexes, I show it graphically.

8 0

3 years ago

If current trends continue, China may be the world's largest economy by 2030. In a concise and well-noted statement, discuss the

Blizzard [7]

Answer:

If by 2030 China became, as current data estimates, the world's largest economy, this would mean a series of global changes in macroeconomic matters: A) for the world trade system, China would become the main exporter given its huge population (estimated at 1.6 billion people) added to its economic capacity, which would flood the world markets with manufactured products in this country, increasing the fiscal surplus and employment for its inhabitants; furthermore, it would relegate many nations to being secondary producers; B) the monetary system would watch the emergence of the Renmimbi as a new reference currency, displacing the dollar and the euro from the center of the scene; C) Commodity prices would be determined according to the consumption and production needs of China, with which the products demanded in this country will have high value.

4 0

4 years ago