Net sales for the Boron Company were $60,000, with $7,000 in beginning inventory, $35,000 in purchasing, and $5,000 in ending inventory. $37,000 is the cost of the sold goods.
Cost of Goods Sold is calculated as Beginning Inventory minus Purchases minus Ending Inventory.
$7000+$35000-$5000=$37000
The direct costs of producing the products that a business sells are referred to as its cost of goods sold (COGS). The cost of the labor and materials directly employed to make the good are also included in this sum. It doesn't include indirect expenditures like those associated with the sales staff and distribution. As a company's gross profit is calculated by subtracting COGS from its revenues, COGS is a crucial financial statement statistic.
To learn more about Cost of goods sold here
brainly.com/question/13499038
#SPJ1
Answer and Explanation:
The computation is shown below:
Fixed cost is
= $500,000 + $1,000,000
= $1,500,000
And, the marginal cost is
= $0.25 + $0.10
= $0.35 per paer
Now
as we know that
AFC = FC ÷ Q
Now for At 1,000,000 papers,
AFC is
= 1,500,000 ÷ 1,000,000
= $1.50/mo
At 800,000
, it would be
AFC = 1,500,000 ÷ 800,000
= $1.875/mo
MC = $0.35 per paper and the same is not changed
Now for break even, the average total cost is
ATC = AFC + AVC
ATC = FC ÷ Q + VC ÷ Q
VC = MC × Q
ATC = FC ÷ Q + MC
ATC = FC ÷ Q + 0.35
At Q = 1,000,000,
ATC = 1.50 + 0.35
ATC = $1.85
At Q = 800,000
, it would be
ATC = 1.875 + 0.35
= $2.225
As it can be seen that
The AFC changes from 1.50 to 1.875 which shows an increment of 0.375.
The MC remains constant or same at 0.35 as the printing and delivery costs per paper are remain same
And, The minimum amount that we must charge to break even rises i.e. from 1.85 to 2.225. That is a rise of 0.375
Answer:
a) 17.5%
Explanation:
The computation of the simple rate of return on the investment is shown below:
Simple rate of return = Annual net income ÷ Initial investment
where,
Annual net income is
= Sales revenue - cash operating expenses - depreciation expenses
= $250,000 - $100,000 - ($400,000 ÷ 5)
= $70,000
And, the initial investment is $400,000
So, the simple rate of return is
= $70,000 ÷ $400,000
= 17.5%
Dividing the annual net income by the initial investment we can get the simple rate of return
The inability of sole proprietors to provide fringe benefits to their employees can affect the service rendered to customers. Without fringe benefits, the employer will not be able to attract quality applicants for his business. He may have to settle for less qualified staff who may not be able to provide clients with excellent service.
