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SashulF [63]
3 years ago
10

A company's current sales are $300,000 and fixed expenses total $225,000. The contribution margin ratio is 30%. The company has

decided to expand production which is expected to increase sales by $70,000 and fixed expenses by $15,000. If these results occur, net operating income will ______. Multiple choice question. increase by $6,000 decrease by $27,000 increase by $21,000 decrease by $15,000
Business
1 answer:
Anna [14]3 years ago
3 0

Answer:

Increase by $6,000

Explanation:

Calculation to determine the net operating income

Using this formula

Net operating income=Expected sales increase ×Contribution margin ratio-Fixed expenses

Let plug in the formula

Net operating income=$70,000 x 30% - $15,000

Net operating income=$21,000-$15,000

Net operating income=$6,000 increase

Therefore the net operating income will increase by $6,000

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J Corporation has two divisions. Division A has a contribution margin of $79,300 and Division B has a contribution margin of $12
Allushta [10]

Answer:

Net income= $98,200

Explanation:

Giving the following information:

Division A:

The contribution margin of $79,300

Division B:

Contribution margin of $126,200.

The total traceable fixed costs are $72,400 and total common fixed costs are $34,900.

<u>To calculate the net operating income, we need to deduct from the combined contribution margin the fixed costs.</u>

<u></u>

Net income= (79,300 + 126,200) - 72,400 - 34,900

Net income= $98,200

7 0
3 years ago
jackson's programming paid its june rent of $500 cash. demonstrate how to use the accounting equation to record the transaction
Irina-Kira [14]

Answer: Jackson would decrease CASH and increase EXPENSES in the accounting equation.

Explanation: Jackson would lose cash by spending his money and his Living expenses will also rise along with it.

7 0
1 year ago
Jillian wants to plan her finances because she wants to create and maintain her tax and credit history. She also wants to chart
gladu [14]

The correct answer is; October 1st and September 30th.

Further Explanation:

There are approximately 3 types of fiscal years. They are;

  1. Business
  2. Federal
  3. Non-profit

The federal fiscal year always starts on October 1st and will end on September 30th the following year. These are divided into four quarters each year. This will cover a 12 month calendar year.

A fiscal year can contain 365 or 366 days depending if there is a leap year. This is used as a starting place to start commencing your record keeping in order and when to conclude for the year.

When keeping financial records numerous things needs to be kept for the following year. Some of the things that needs to be kept are; precise records, receipts, contracts, check stubs, and the budget used.

Learn more about the fiscal year at brainly.com/question/13648773

#LearnwithBrainly

7 0
3 years ago
Almost certainly you have seen vending machines being serviced on your campus and elsewhere. On a predetermined schedule the ven
Nesterboy [21]

Answer:

Fixed Time Period Model

Explanation:

a fixed time period model ensures that level of inventory is checked regularly for all items. therefore from the question, if the vending company checks each machine and fills it with various product the inventory method is <u>Fixed Time Period Model</u><u>.</u>

3 0
3 years ago
The forward-looking process of coordinating assets to optimize the delivery of goods, services and information from supplier to
Mama L [17]

Answer: Supply chain planning.

Explanation:

Supply chain planning is a comprehensive plan a production company has in place that ensures, the smooth and effective running of operations involved in the supply chain. Supply chain planning involves planning for factors within and outside the company which includes: raw materials and resources gathering, production and distribution of products.

5 0
3 years ago
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